Stat Tops 30,000 Subscribers, Nears $20 Million in Revenue

The medical publisher Stat, a venture owned by Boston Globe Media that operates as a standalone enterprise, announced on Friday its fifth community-centric event, Stat Open Doors, the latest product from the media company aimed at translating its niche audience into outsized reader revenue. Since its founding in 2015, the publisher has grown its revenue by serving a readership of health and medical professionals, a relatively small addressable market but one with deep pockets and access to corporate expense accounts. Its paid membership program, Stat+, now counts more than 30,000 subscribers paying either $39 per month or $399 per year, according to the publisher. (Stat raised its subscription prices 12% this year.) The subscriber pool splits evenly between individual subscriptions and corporate or institutional subscriptions, and 70% of subscribers pay annually. From 2020 to 2021, revenue from subscriptions, advertising and events rose 24%, 51% and 79%, respectively, according to Rosemary Graves, director of marketing for consumer revenue. The publisher generates 40% of its total revenue from subscriptions, a number it aims to increase to 70%. “We see community as an opportunity to drive new audience members and retain current audiences,” Graves said. “It is not focused on subscribers so much as it is on nurturing conversations.” The strategy reflects the emerging barbell-shaped asymmetry of the media industry, as the economics of digital advertising push publishers toward either extreme scale or profitable niches. By identifying an underserved, affluent audience and monetizing it through a variety of vehicles, Stat demonstrates the viability of the latter approach. After bringing in $10 million in revenue in 2020, Stat is on pace to nearly double that figure by the end of the year, Graves said. Its headcount has swelled from 50 in 2021 to 90 this year, and the company plans to expand internationally in 2023. While Stat has already succeeded in capitalizing on its lucrative audience, its expanding slate of community events, such as Open Doors, serves a critical top-of-funnel function for widening its reach. The programs draw readers and health professionals, as well paying audience members, deeper into the Stat universe, increasing its chances of converting and retaining them in the process. “Is it easier to double your readership or take your ARPU from $250 to $500 from super-serving that clientele better?” said Justin Eisenband, a managing director at FTI Consulting. “You can and should certainly do both, but in a niche market it’s easier to grow share of wallet than find new audience.” A Blended Portfolio: How Publishers Are Integrating Their In-Person and Virtual Events Community-centric events expose new audiences to Stat Stat hosts a variety of events, but it distinguishes between its free, community initiatives and its paid products, such as its summits and live events, which it tickets. This year, the publisher has hosted 23 events––17 virtual and six in-person––that have attracted 19,000 total viewers, according to the publisher. These paid events are sponsored and have featured interviews with influential figures in the field, such as Dr. Anthony Fauci and the chief executive of Pfizer, Albert Bourla. But the publisher has also worked to expand its slate of free offerings, which help build its brand, widen its subscriber aperture and generate sponsorship revenue, said executive editor Rick Berke. Stat has found a lucrative niche, but they have to make sure they don’t run out of people to acquire.Rob Ristagno, CEO of Sterling Woods Group Stat launched its first two community-focused initiatives, Stat Madness and Stat Wunderkinds, in 2016 and 2017, respectively. The events encourage members of the scientific community to submit applications in the hopes of gaining industry recognition––Madness for innovation and Wunderkinds for rising prodigies. This year, the publisher launched three new community initiatives: Status List, Stat Locals and, most recently, Stat Open Doors. The inaugural Status List recognized 46 standout individuals in the field––a number that pays homage to the number of chromosomes in human DNA––whereas Locals invites Stat readers to attend casual happy hour meet-ups in cities such as Boston, New York and San Diego. Its newest addition, Stat Open Doors, will take place on Nov. 14 and occur throughout the greater Boston area. The event will feature a collection of 22 health, medical and life sciences companies as they welcome visitors to attend on-site pop-up sessions exploring subjects like data collection in the age of genomics. Collectively, the community-centered events generate revenue through sponsorship and fees, but they primarily function as a vehicle for Stat to expand its reach within its highly targeted market, said Rob Ristagno, CEO of Sterling Woods Group. “The Catch-22 of business media is that you can take off and get to $20 million somewhat easily, but how can you get to $100 million?” Ristagno said. “The same reason business media is so successful is also what makes it hard to scale. Stat has found a lucrative niche, but they have to make sure they don’t run out of people to acquire.” Business Newsletter Industry Dive Is on Pace to Break $100 Million in Revenue

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Medical Publisher Stat Tops 30,000 Subscribers and Nears $20 Million in Revenue

The uptick is accompanied by an expanded slate of community-centric events

Mark Stenberg

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