Angie's List Big Announcement

Angie's List changes business strategy due to millennial demand. CEO Scott Durchslag tells FOXBusiness.com about the latest move.

Angie’s List Does An About Face For Millennials

Angie’s List (ANGI) has big news – it’s now free. After more than 20-years, the subscription-based review service has decided to make a major change.

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No longer do people have to pay to access the 10-million plus reviews on Angie’s List, instead they are available nationwide, completely free. Scott Durchslag, Angie’s List CEO, tells FOXBusiness.com a key demographic is behind the shift.

“Millennials will not pay for reviews…so we really want to embrace that and not fight gravity,” Durchslag said. The end goal is to bring millennial engagement to a higher level.

Angie’s List successfully penetrated over 70% of the digital baby boomer households in the United States and over 50% of the digital Gen X households in the United States. However, it only penetrated 30% of the millenial-owned households in the United States.

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Its research and analysis shows these millenial homeowners spend as much on home services as the others, but 90% are not willing to pay to access reviews. Based on these facts, Durchslag determined that the root cause of Angie’s List slowing growth was the reviews paywall.

Although the review service paywall was a source of revenue for the company, it actually makes most of its money from service providers choosing to advertise on their site.

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Investors will be watching to see if the strategy change will lift the stock which has declined 29% this year. The company went public in 2011 and has undergone a series of strategy changes.

Longtime CEO Bill Oesterle resigned last year to pursue politics in the state of Indiana. That’s also home to Governor Mike Pence, who is one of the individuals in the running to be Trump’s Vice President.

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