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BD
Brian Donohue
11/14/18
@ Y Combinator
In December 2013, we executed a plan to make Instapaper free for a week, resulting in a significant increase in downloads and a 10-15% boost in subscriptions after the trial period.
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YC
Brian Donohue on Operating Instapaper Through an Acquisition
@ Y Combinator
11/14/18
Related Takeaways
BD
Brian Donohue
11/14/18
@ Y Combinator
By September 2014, we officially made Instapaper free and launched a new subscription pricing model, which led to a recovery in revenue and a growth trajectory for the app.
BD
Brian Donohue
11/14/18
@ Y Combinator
The decision to spin Instapaper out of Pinterest was made in early 2018, as I felt it was important to keep the product alive and aligned with its original mission. I believe Instapaper can continue to be self-sustainable based on existing usage and a reasonable conversion rate from free to paid subscriptions.
BD
Brian Donohue
11/14/18
@ Y Combinator
The launch of Pocket as a free competitor in 2012 led to a decline in Instapaper's downloads, prompting Marco Arment to consider the future of Instapaper and eventually sell it to Beta Works.
BD
Brian Donohue
11/14/18
@ Y Combinator
In late 2016, I proposed several options for Instapaper's future, including staffing a dedicated team or putting it in maintenance mode, ultimately deciding to keep it running with minimal resources.
BD
Brian Donohue
11/14/18
@ Y Combinator
After being acquired by Beta Works, I joined Instapaper as an iOS developer in 2013, where I advocated for transitioning Instapaper to a freemium model due to the strong competition from free apps.
BD
Brian Donohue
11/14/18
@ Y Combinator
We raised $80,000 from friends and family to support Instapaper after it spun out, with the goal of making it a long-term sustainable business.
BD
Brian Donohue
11/14/18
@ Y Combinator
After the acquisition, I was tasked with maintaining Instapaper while also focusing on my work at Pinterest, dedicating a few hours each week to updates and server maintenance.
BD
Brian Donohue
11/14/18
@ Y Combinator
Pinterest acquired Instapaper in August 2016 after a lengthy negotiation process that began in December 2015, driven by interest from both Pinterest and other media companies.
BD
Brian Donohue
11/14/18
@ Y Combinator
In the early days of Instapaper, it addressed three key consumer pain points: slow mobile networks, the lack of good reading applications on the iPhone, and the need for a better reading experience on mobile devices.