Only 20% of US streaming subscribers content to stay with providers | Media Analysis | Business | News | Rapid TV News
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The explosion in the number of streaming providers over the last number of years has been great news for users but research from Interpret has shown that the growing number of offerings has led to increased experimentation and willingness to switch services.
Netflix English Multiple Device 17July2020
Indeed, according to the Video Churn Today: Trends, Changes and Outlook 2021 study, the aggressive marketing of new streaming services is providing consumers with more incentive to cut the pay-TV cord and sign up for new services, but subscriber churn has become an increasing problem for streaming service providers. Just 20% of streaming subscribers are content to stay with their current providers.

Overall, SVOD subscribers were found to have increased by 14% in the second half of 2020 and during the same period, the rate of cancellation increased to 20% from 15%. This said Interpret signalled that churn was not unique to pay-TV providers. The latter were found to have seen churn increase 2 points to 7% during the second half of the year.

According to the Interpret report, consumers who subscribe to multiple SVOD services also have a willingness to watch ad-supported streaming (AVOD) services, providing ad agencies growing inventory on streaming outlets. Consumers, moreover, were found to be actively taking advantage of trials without subscribing, and adding and dropping services on an increasing basis. Nearly 20% of subscribers report switching among services to watch platform exclusives, and 13% report cancelling a service after watching a selected video series.

“Subscriber churn was a concern for many video service providers prior to the pandemic, particularly for pay-TV. The interruption in content, household income, and viewing behaviour, along with heightened competition, has led to changes in how consumers value and evaluate video offerings,” said Brett Sappington, VP of research at Interpret commenting on the Video Churn Today: Trends, Changes and Outlook 2021 study. “Users now realise that they can’t get all of their preferred content in one place. The industry is essentially training consumers to be churn tolerant. So, the question for the future is less about how to stop churn, and more about how to make churn work in your favour.”