Strategic Pricing Adjustment to Accelerate User Growth and Revenue

Dear OpenAI Leadership,

I am writing to propose a strategic adjustment to ChatGPT’s subscription pricing that could substantially increase both user adoption and revenue. While ChatGPT has achieved remarkable success, the current $25/month subscription fee may be a barrier for many potential users. In contrast, a $9.95/month pricing model aligns with industry standards and could unlock significant growth.

Current Landscape

As of mid-2025, ChatGPT boasts:

  • 800 million weekly active users, with projections aiming for 1 billion by year-end. (source)
  • 20 million paid subscribers, generating approximately $500 million in monthly revenue. (source)

Despite this success, the vast majority of users remain on the free tier, indicating a substantial untapped market.

The Case for $9.95/Month

A $9.95/month subscription fee is a proven price point for digital services, offering a balance between affordability and perceived value. Services like Spotify, Netflix, and OnlyFans have thrived with similar pricing, demonstrating that users are willing to pay for enhanced features and experiences at this price point.

Projected Impact

If ChatGPT were to lower its subscription fee to $9.95/month, the following scenarios illustrate potential outcomes:

  • Scenario 1: 50% Conversion Rate
    50% of current weekly active users (400 million) convert to paid subscriptions.
    200 million paying users × $9.95/month = $1.99 billion/month.
    Annual revenue: $23.88 billion.
  • Scenario 2: 25% Conversion Rate
    25% conversion rate yields 100 million paying users.
    100 million × $9.95/month = $995 million/month.
    Annual revenue: $11.94 billion.

Even at a conservative 25% conversion rate, annual revenue would exceed current projections, highlighting the significant financial upside.

Strategic Considerations

  • Expand the user base: Attract a broader audience, including students, professionals, and casual users.
  • Enhance user engagement: Increased adoption could lead to higher usage rates and data insights, further improving the product.
  • Strengthen market position: A more accessible price point could solidify ChatGPT’s dominance in the AI chatbot market, currently holding an 80.92% share. (source)

Conclusion

Adopting a $9.95/month subscription fee could be a transformative move for ChatGPT, driving substantial revenue growth and reinforcing its position as a leader in the AI space. I urge you to consider this strategic adjustment to unlock ChatGPT’s full potential.

Sincerely,
The Rowanwood Chronicles

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