LTV (subscriber lifetime value)
Also known as: Subscriber lifetime value, Customer lifetime value
Subscriber lifetime value is the total revenue a publisher can expect from a subscriber over their lifetime — calculated as ARPU divided by the churn rate (times gross margin).
Higher retention and higher ARPU both raise LTV.
Why it matters for publishers
LTV tells you how much you can afford to spend acquiring a subscriber. Without it, marketing budgets are guesswork; with it, you can set a defensible cost-per-acquisition target and see immediately how retention improvements pay for themselves.
How publishers use it in practice
- The simple formula is ARPU ÷ churn rate, optionally multiplied by gross margin.
- Use monthly ARPU with monthly churn — mixing time periods is the most common mistake.
- Compare LTV to CAC: a ratio of 3:1 or better is a healthy target for subscription publishers.
- Because churn is the denominator, retention work moves LTV far faster than price rises do.
Worked example
£10 ARPU with 5% monthly churn gives an LTV of £200 (20 months). Cut churn to 4% and LTV rises to £250 with no price change.
Frequently asked questions about ltv (subscriber lifetime value)
- Should LTV include payment fees?
- Yes if you want a margin-accurate figure — apply gross margin after processing fees and content delivery costs.
- How much should I spend acquiring a subscriber?
- A common rule is no more than a third of LTV, and ideally recovering CAC within 12 months to protect cash flow.