Remember when you bought that bestselling book? 📖✨
You swore you'd read it, but now it’s just sitting there - half read, gathering dust.

You tried PDFs, but the screen glare sucked the joy out of reading.

And let’s be honest—your YouTube and Instagram addiction? 📱💥

It’s fun at first, but after hours of endless scrolling, you’re left feeling guilty, overstimulated, and, let’s face it, unfulfilled.

Your relaxation time? Spent mindlessly looping the same 3 songs. 🎶

Your commute? A blur of traffic and noise. 🚗💨
You crave something more.

Something immersive.

Something that actually makes the hours count.

And then came Pocket FM! 🎧🔥

No more distractions. No more empty screen time.

Just gripping stories, powerful audiobooks, and immersive dramas—all in the language of your choice.

So whether you’re commuting, cooking, or just unwinding.

Press play and let the story take over.

1. Background

What is Pocket FM?

• Pocket FM is a leading audio entertainment platform offering a wide array of serialized audio content.
• The platform caters to a global audience by delivering immersive stories across various genres, including thriller, romance, fantasy, and more. Each series is crafted to captivate listeners, turning everyday moments into engaging experiences.
• With a flexible "freemium" model, Pocket FM allows users to access a selection of free content while providing options to unlock additional episodes and go ad-free through microtransactions.

Key Highlights:

✅ Gamified Monetization: Uses microtransactions (coins) instead of a full subscription model.
✅ U.S. Expansion: 70% of revenue now comes from the U.S. 🇺🇸
✅ Binge-Worthy Content: Serialized storytelling keeps users engaged and invested.

How does Pocket FM work?

Pocket FM is an Audio entertainment platform featuring audiobooks, audio series, and podcasts. 🎧

• Users sign up via email, phone, or social media. 📲
• Select preferred language and genre to personalize content. 🌍
• Freemium model – first few episodes are free, later episodes are locked. 🔒
• Users can wait for daily unlocks, watch ads for free coins, or purchase coins 💰 to unlock episodes instantly.
• Ads, surveys for free users, with an option to pay to remove ads. 🚫📢
• Gamified monetization – microtransactions make unlocking episodes feel like a rewarding challenge. 🎮
• No subscription model, unlike Audible or Spotify; relies on microtransactions and ad revenue. 💼
• Focus on serialized storytelling, creating high engagement and binge-worthy experiences. 📖🔥

How is Pocket FM different from other competitors?

• Users engage with Pocket FM differently than they do with other entertainment platforms.
• Instead of consuming content in one go, they follow long-running audio stories, often getting emotionally invested over time.
• This makes an episodic monetization model more effective than a fixed subscription.

👉Due to this, users exhibit high binge-listening behavior, meaning they crave instant gratification.

👉By offering free content with limited access and the option to unlock faster, Pocket FM successfully converts engaged users into paying customers.

2. Understanding the Product

What is the core value proposition of Pocket FM? ​

For Users:

• Access to high quality captivating stories: Pocket FM provides immersive, serialized audio series across varied genres.
• Personalization & discovery: Pocket FM delivers personalized content suggestions based on listening habits.
• Convenience & portability : Enables seamless music streaming across multiple devices for a convenient experience.
• Episodic narratives: Pocket FM offers layered, serial storytelling that hooks you from the start and keeps you coming back for the next episode.
• Community engagement: Facilitates social sharing, collaborative playlists, and community engagement.
• Freemium access model: Offers a mix of free, ad-supported content and premium, ad-free experiences through microtransactions, catering to a range of user preferences.

For Content Creators:

• Expanded reach: Pocket FM connects content creators with a large, engaged audience.
• Creative freedom: Pocket FM supports experimentation with diverse audio formats and genres.
• Monetization opportunities: Pocket FM facilitates earning through microtransactions and ad revenue sharing.
• Free discoverability, visibility & marketing: Pocket FM provides creators with promotional tools and analytics to effectively market their content and expand their audience.
• Content piracy, copyright & licensing issues: It supports audio content creators by providing a legitimate platform for distribution, offering exclusive publishing agreements, and actively protecting intellectual property rights.

Overall:

• Expanded reach: Pocket FM connects content creators with a large, engaged audience.
• Creative freedom: Pocket FM supports experimentation with diverse audio formats and genres.
• Monetization opportunities: Pocket FM facilitates earning through microtransactions and ad revenue sharing.

Who is using Pocket FM?

Basic ICP Map

ICPs closely looked at :

Find complete user call + ICP data here

3. Pocket FM & Monetization

Is Pocket FM already Monetizing?

Yes pocket FM is already monetizing.

What steps helped Pocket FM decide whether it was ready to monetize? Validate if ready for Monetization

Let's run this the litmus test for Pocket FM to analyze and gauge if pocket FM is ready for monetization.

Test 1 | Is the Retention curve for Pocket FM flattening?

For new users, as observed in the retention data, Pocket FM experiences a sharp drop in user retention after the initial trial offers end, followed by a period of stabilization. This pattern indicates that while the platform successfully acquires new users through its free offering, many casual listeners do not convert into long-term paying subscribers.

Over the past three years, Pocket FM's retention curve has remained stable, indicating a consistent influx of users year over year. This sustained engagement highlights the platform’s ability to attract and retain listeners, reinforcing the need for a more structured pricing strategy to maximize monetization and enhance user satisfaction.

Test 2 | Are users engaging with the platform deeply?

Engagement Funnel: Let's understand and define our casual/core/power users ( from user perspective only- not creator)

👉Casual, Core Power Users Insights deep dives

1. Power users

(Daily Listeners, High Engagement)

• Use the platform every day, binge-listen, and unlock multiple episodes in bulk.
• Engage deeply with premium content, personalized recommendations, and community features.
• Likely to spend on ad-free experiences and bulk episode unlocks.

2. Core users

(Regular Listeners, Moderate Engagement)

• Use the platform 3-4 times a week, engage with multiple series but less binge-heavy.
• Willing to wait for free episode unlocks, but occasionally purchase coins for faster access.
• Engage with recommendations, playlists, and some community features.

3. Casual users

(Infrequent Listeners, Low Engagement)

• Use the platform once a week, primarily for free content.
• Make small microtransactions occasionally but mostly rely on ad-supported access.
• Minimal engagement with features like playlists or social sharing, requiring nudges to increase retention.

Test 3 | Are they willing to pay?

The rise of Pocket FM in the audio streaming market is not just about convenience; it's about access to an extensive library of immersive, serialized audio content across genres like thriller, romance, fantasy, and more. With Pocket FM, listeners can explore captivating audiobooks, dramas, and series in multiple languages, offering a diverse listening experience tailored to individual preferences.

Why do users pay for Pocket FM Premium?

1. Ad-Free Listening
   Users can enjoy uninterrupted audio content without the annoyance of ads, providing a more immersive experience.
2. Exclusive Content
   Access to premium and exclusive episodes or entire series that enhance the overall value of the platform.

As the demand for engaging, on-the-go content continues to rise, Pocket FM's freemium model, combined with its growing library of premium content and flexibility in subscription, creates strong incentives for users to pay for an enhanced experience, making the monetization potential in India significant.

What are the core problems Pocket FM solves for?

For users

For Creators

Alternative ways users are solving for these problem currently?

The ICPs of Pocket FM are :

While Pocket FM stands out by focusing on immersive, narrative-driven audio content, other products that cater to the same use case of different ICPs include- Let's isolate each of the purposes Pocket FM serves currently and map out the corresponding alternatives/ competitors in those spaces

These competitors/ alternatives can be further classified into direct/ indirect

Direct- 70% similar to JTBD of Pocket FM

Indirect- Less than 70% similar

Substitute Pricing

• Unlike its competitors, Pocket FM does not follow a fixed monthly or annual subscription model.
• Instead, it monetizes content on a per-episode basis which can be more expensive over time.
• However, users are willing to pay because of the high-quality storytelling, immersive experience, and gamified progression. By letting listeners unlock episodes gradually Pocket FM taps into the psychological appeal of microtransactions, similar to mobile games where small, incremental spending feels less overwhelming than a lumpsum subscription.
• The dopamine driven unlocking mechanism, combined with compelling narratives and sunk cost fallacy keeps users engaged and invested in completing their stories making them more likely to return and spend again.
• Those who cannot afford to purchase coins engage in microtransactions allowing them to unlock episodes gradually and consume audiobooks at their own pace.
• This flexible model ensures that users pay only for what they consume making high-quality content accessible without a hefty upfront cost.
• By offering bite-sized purchases Pocket FM lowers the barrier to entry while still driving consistent revenue, catering to both premium users and those who prefer a pay-as-you-go approach.

What are users buying into by opting for Pocket FM?

• Immersive Storytelling:
  Users value the ability to access captivating, episodic narratives that transform daily commutes, breaks, or leisure time into an immersive audio journey.

High view counts indicate these stories are audience favorites, known for their immersive storytelling and highly engaging narratives.

• Personalized Discovery:
  The highly tailored recommendations using AI.

• Flexible Access:
  The freemium model, which balances free, ad-supported content with premium, ad-free options available via microtransactions, caters to different listening preferences and budgets.

• Community and Engagement:
  Social features (like sharing favorite episodes and interacting with content creators) deepen user engagement and foster a sense of belonging within the platform’s community.

What makes Pocket FM stand out ?

Pocket FM stands out due to its unique microtransaction-based monetization model, offering flexibility compared to traditional subscription-based platforms. Instead of committing to a fixed monthly or annual fee, users can unlock episodes individually, making it more engaging and gamified.

Key differentiators:

• Gamified Experience Users stay hooked with episodic unlocks, daily rewards, and streak-based incentives, mimicking addictive gaming mechanics.
• High-Quality Content & Production Professionally narrated, immersive storytelling with compelling sound design makes it stand out.
• Regional & Vernacular Content A vast library of localized content across multiple Indian languages, catering to a diverse audience.
• Flexible Listening Model Users can either pay-per-episode, wait for free unlocks, or purchase coin bundles, allowing both free and paying users to coexist.
• Emotionally Driven Retention The platform ensures listeners get deeply invested before hitting a paywall, leveraging the sunk cost fallacy to drive conversions.

Whom to charge design

To understand which segment to charge, we segment Pocket FM users into Casual, Core, and Power Users using RFM Analysis (Recency, Frequency, Monetary value)

Step 1 : RFM Analysis & User Segmentation

Step 2: Gather Insights basis user call and user segmentation in step 1

Power Users

Price sensitivity : Low

Optimization

• Offer premium content, discounts on bulk purchases, and loyalty rewards.
• Maximize retention by making the experience seamless & rewarding.

Core Users

Price sensitivity :Moderate

Optimization

• Encourage frequent spending through timed discounts & small coin packs.
• Personalize offers based on their content preferences.

Casual Users

Price sensitivity :High

Optimization

• Focus on ads & occasional incentives to convert them into buyers.
• Remove friction in payment process to encourage first-time purchases.

Step 3: Developing Pricing Strategies & Forecasting Their Potential Impact

By systematically mapping these strategies against expected user responses, we can refine pricing decisions to maximize both revenue and long-term user engagement.

Evaluation of Pocket FM’s Current 'whom to charge' Strategy & Proposed Design Enhancements

• By strategically charging most users at the right time, based on engagement levels, the platform maximizes both retention and monetization.
• Instead of a traditional subscription model, Pocket FM leverages a freemium + pay-as-you-go approach, ensuring users feel in control of their spending while keeping engagement high.

Detailed Breakdown of RFM with impact of pricing strategies on the Monetary outlook of Pocket FM

• Champions & Loyal Customers drive the most revenue through coin purchases.
• Potential Loyalists & Promising Users contribute moderately through a mix of coins & ads.
• Less engaged users (Needs Attention, About to Sleep, Can't Lose Them) primarily generate revenue through ads.
• At Risk & Hibernating Users are inactive monetarily and need re-engagement strategies.

Pros:

• Maximizes revenue by monetizing the entire use base.
• Users feel in control with a pay-as-you-go model- and may end up paying more over time.
• Higher engagement due to free entry and gradual monetization.
• Champions & Loyal Users drive strong revenue through coin purchases.

Cons:

• Inconsistent revenue due to reliance on microtransactions.
• Ads may frustrate casual users, affecting retention.
• Purchasing coins repeatedly will lead to retention drop in power and core users
• No long-term commitment compared to subscription models.
• Progressive payment will lead to higher costs leading to complete disengagement once user realizes this.

Final Verdict: Should Pocket FM change Its ' whom to charge' monetization model?

• Keeping microtransactions is good, but revenue stability is a concern.
• A tiered subscription option can attract long-term paying users.
• Gamification & personalized offers can increase spending while keeping engagement high.

When to charge' is a function of perceived value wrt time.

Thus in order to arrive at 'when to charge' we need to understand -

1. Perceived value of product

2. Perceived price of product

3. Time/ timeline it takes for user to achieve this perceived value.

We will understand the above in the following order :

Perceived Value of Product (Perceived Value)

Perceived value of Pocket FM comes from

1. The product directly

2. Pocket FM having an edge over its competitors

These 2 will be covered under microscopic & broad overview respectively.

Microscopic Overview

What type of perceived value does Pocket FM hold?

For Pocket FM, the primary determinant of value is the dopamine hit delivered through immersive, serialized storytelling.

Here’s how this plays out and why it matters:

Primary : Dopamine Hit from Immersive Storytelling:

• Pocket FM’s episodic, gamified approach creates an emotional reward loop. As users unlock new episodes and see their progress, they experience a burst of satisfaction almost like earning a badge.
• This emotional engagement keeps users coming back, driving both retention and monetization.

Secondary : Optimizing Time, increasing efficiency

• Users value the ability to consume content (audiobooks, stories, etc.) while multitasking, such as commuting, exercising, or relaxing. This convenience makes their time feel well spent.
• Entertainment and Engagement: Users derive enjoyment and emotional satisfaction from the stories they listen to, helping them unwind or be entertained during otherwise idle moments.

In summary, for Pocket FM, the dopamine hit from immersive storytelling, supported by a gamified unlocking mechanism, is the key metric that defines its value proposition, while the convenience of turning idle time into a rewarding experience serves as a significant secondary benefit.

Broad Overview

Pocket FM Vs Competition | What edge does pocket FM have ?

Pocket FM stands out in the market because it combines engagement, gamification, flexibility, and affordability in ways that no competitor currently does. It makes spending feel effortless and rewarding, leading to higher user retention and monetization without the friction of a subscription model.

Understanding the unique benefits and features of Pocket FM offerings compared to competitors, will determine customers willingness to pay. Hence let's understand it's ups in detail below-

Perceived Price

What is the perceived price for Pocket FM?

Perceived price is how expensive (or affordable) a user feels Pocket FM is, based on their experience of its value.

Instead of a fixed subscription, Pocket FM uses a pay-as-you-go model with microtransactions, which makes spending feel smaller and more justified.

Pocket FM keeps perceived price low by:
✅ Using microtransactions instead of a subscription
✅ Offering free access with ads, making payment feel optional
✅ Creating emotional hooks that make spending feel rewarding
✅ Encouraging bulk coin purchases with discounts

By making payments feel like small, justified choices, Pocket FM reduces price sensitivity making a user more willing to spend. This reduces its perceived price in a user's eye.

User Journey for product (Time)

What does the current user flow look like?

To understand this better, let's take an example of Kartik who signs up as a new user and starts using Pocket FM as a free user, exploring the app and the collection.

This is what his journey on the app would look like :

• Discovery: Users first find the app, are intrigued by the offering, and begin exploring free content.
• Onboarding: They sign up, get familiar with the platform, and start interacting with the content.
• Browsing and Content Exploration: The users start browsing different genres or series available on Pocket FM.
• Engagement with Free Content: Users engage with free episodes, forming an emotional connection with the content.
• Progressing through Episodes: As users unlock episodes, they experience the satisfaction of progression, building anticipation for the next episode.
• Hitting the Episode Lock: Users reach a point where they encounter a locked episode, triggering the decision-making moment about whether to pay to continue.

• By day 3-4, the user encounters the episode lock—at this stage, they are either fully engaged with the content or have lost interest. This becomes a critical decision point where they must choose whether to continue or drop off.
• For users with a willingness to pay, there is a brief deliberation phase before they make a purchase. Those who are hesitant or unable to pay opt to wait for the time-locked free access instead.
• After going through this unlock-wait cycle 2-3 times, the user reaches a tipping point, typically around day 10-12, where they finally decide to purchase access, having recognized the value of uninterrupted listening.
• Currently, Pocket FM operates without a subscription model, but if one were introduced, users would likely convert around day 30—after completing a full content cycle and before committing to their next book.

At this stage, a long-term subscription plan would not only make economic sense but also reflect their growing commitment to the platform

When does perceived value > perceived price for Pocket FM?

Upto, step 6, the user journey pans out like this - ( as seen in the above flow chart)

👉Before reaching the episode lock, users go through discovery, onboarding, browsing, and free content, forming an emotional connection with the storytelling. 

👉This engagement delivers a dopamine hit, reinforcing interest and anticipation.

👉By the time they hit the lock, they’ve experienced the value and are emotionally invested. 

👉This makes it the perfect moment to monetize, as they’re primed to pay to continue the journey.

Pocket FM delivers a highly engaging, immersive, and gamified audio storytelling experience.

Unlike traditional subscription-based platforms, Pocket FM monetizes through microtransactions, episodic unlocks, and engagement-driven pricing models.

Given the unique value proposition, we need a structured approach to decide what to charge users for while balancing free access, engagement, and revenue generation.

The key factors influencing the pricing strategy and determining what is to be charged for are as follows in the flow chart.

This would mean a combination of Time, Output, Access and Share-ability.

Time is primary followed by Access and Output

In order to arrive at " How much to charge?" we will be following the following steps 😀

Frameworks of 'how much to charge'- for Pocket FM

How to decide how much to charge for Pocket FM?

In order to arrive at 'how much to charge'?

We will need to factor the following:

Step 1 : Compare cost of alternatives to Pocket FM

Step 2 : Understand Time spent vs Time Saved

Assuming user makes 2000/ hour

Let's look at 5 different scenarios here

Adjusting this for earlier assumption of 2000/ hour which will not be the case for all users,

Final price for Pocket FM will be derived in the next section under ( Pricing Strategy for Pocket FM)

Understanding Current Monetization Model of Pocket FM

What does Pocket FM's monetization look like?

Monetization Point 1 : Episode Lock | Restricted Flow in User Experience

• Monetization on Pocket FM is strategically timed to ensure users first experience value before being prompted to pay.
• Users are given free access to the first few episodes, allowing them to get deeply engrossed in the story.
• Once they are hooked and invested in the narrative, Pocket FM introduces episode locks, creating a natural friction point where users must either wait for the next episode or unlock it immediately through microtransactions.
• This approach ensures that monetization feels seamless and justified—charging only after users have built a strong connection with the content. 🚀

This is applicable on all users- casual, core and power

This unlocking can be in exchange for coins. Coins can be got in one of the following ways

• Purchasing in exchange for money
• Undertaking tasks like watching given number of ads, waiting for a set amount of time or filling surveys

Monetization Point 2 : In app advertisements

Journey for New User

• New users on Pocket FM enjoy a 30-day ad-free experience, allowing them to fully immerse themselves in seamless storytelling without interruptions.
• During this period, they experience the smooth, uninterrupted flow of content, making it a natural part of their routine. After 30 days, ads are introduced, creating a contrast in the listening experience.
• Once 30 days over since user first onboarded on the platform he is exposed to ads
• To regain the premium, ad-free experience they’ve grown accustomed to, users are given the option to subscribe and remove ads, ensuring monetization happens only after they’ve seen the true value of an uninterrupted listening journey. 🚀

Journey for Repeat User

• Users beyond 30 days on the platform are shown ads on all free episodes
• Ads can be gotten rid of once episodes are purchased
• Occasionally there is an option to get rid of platform level ads in exchange for a set amount.

How does Pocket FM monetize different users on the platform?

• Currently, Pocket FM employs a uniform monetization approach for Casual, Core, and Power users, without differentiation based on engagement levels.
• New users enjoy a 30-day ad-free experience, allowing them to explore the platform without interruptions before encountering monetization prompts.

Proposed Solution: Hybrid Monetization Model

In order to redesign, let's summarize the current model in place and draw insights from there.

Let's also factor the needs of the business

Proposed Monetization model to incorporate 3 types of transactions on the platform as shown below.

1. Freemium

2. Tiered based subscription plans

3. Coin based transactions for those still reluctant to commit to plans .

PS : Model explained in detail in the pricing section.

Section at a Glance :

Price Discovery + User Flow + Existing Monetization Model Analysis

👉Step 1A- Auditing Price Discovery Journey for Pocket FM

👉Step 1B- Gathering Insights from RFM analysis + User calls

- Pros + Cons of Model

- Customer sentiments around the Model

Current Pricing page

👉Step 1C- Analyzing current pricing page

Redesigning Pricing page + Monetization Model

Redesigning Pricing Strategy

👉What elements have been added?

👉How do these modifications impact conversion, user experience & better core value prop communication?