Apply each tier’s own churn rate, then re-price. Basic: 4,000 × 0.97 = 3,880
subscribers × £9.00 = £34,920. Standard: 2,500 × 0.98 = 2,450 × £18.00 = £44,100.
Premium: 900 × 0.99 = 891 × £35.00 = £31,185. Total = 34,920 + 44,100 + 31,185 =
£110,205. Current revenue, before any churn, is 36,000 + 45,000 + 31,500 =
£112,500, so anyone answering that has stopped a step early. Applying the worst
tier’s 3% rate across the whole business gives 112,500 × 0.97 = £109,125, which
over-churns the two tiers that are more loyal. Applying the churn as growth rather
than loss (4,120 × £9.00, 2,550 × £18.00 and 909 × £35.00) gives £114,795;
churn is subscribers leaving. Note that no single blended rate reproduces the right
answer: the tiers must be churned separately because the cheapest tier loses
subscribers fastest, so a smaller share of the loss falls on the dearest seats.