A new Parks Associates study has found that the average annualized churn rate for streaming video services in the U.S. is 47 percent, with the desire to save money as the leading reason people cancel a subscription.
According to the report, Video Services: Shifting Demand, 29 percent of internet households say they cancel a service to save money. The second most popular reason for canceling is finishing a specific show a subscriber wanted. Other key reasons include not finding something compelling to watch, the end of a promotional offer and price increases.
“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.”
Parks notes that a steady flow of scripted is key to viewer engagement, but it is expensive and currently on hold due to the double strikes in the U.S. Platforms need to remain focused on providing consumers what they want while also keeping an eye on financial returns as viewers flock to FAST and AVOD services.
From the article, "Churn Rate for U.S. Streamers Hits 47 Percent" by Mansha Daswani