Despite cracking down on password sharing, Netflix has seen its subscriber numbers rise. — AFP Relaxnews
In the US, the average annual churn rate for video streaming services is 47%. Among the most common reasons given for canceling a subscription is the cost.
Such is the case for nearly three in ten households who cut their spending by canceling subscriptions to Netflix, Disney+, Prime Video and other platforms.
To save money, you have to make choices. Among them, some American families have decided to do without streaming platforms. According to the “Video Services: Shifting Demand” report from Parks Associates, 29% of Internet households say they cancel a subscription to a streaming service to save money. In the US, the annual churn rate for streaming platforms is 47%, according to the study.
Beyond money, US households also pay attention to content. For them, a specific series can drive them to subscribe to a platform, and conversely, they might unsubscribe immediately after watching it. To retain users, streaming platforms should keep a close eye on their offer, since failing to find an interesting show to watch is another reason for unsubscribing. And if Netflix and Disney+ offer cheaper subscriptions, albeit with ads, subscribers are also sensitive to price increases.
This didn't stop Netflix gaining 2.6 million users in July in the US, 23% of whom opted for the new US$7 offer, up 4% on June, according to Antenna data, and despite clamping down on password sharing at the end of May.
For the research firm, a diverse and steady flow of content could keep viewers engaged, but the current writers' strike in Hollywood could well hamper the growth of certain platforms.
"Consumer focus on price and content underscores the pivotal role of value in consumer decision-making," said Sarah Lee, research analyst at Parks Associates. "When high-quality content is absent, subscriber churn becomes inevitable, making content diversity a cornerstone of profitable growth, along with consideration of pricing." – AFP Relaxnews
