Streaming providers are finding it harder to keep their customers.
The idea of ditching cable bundles for select streaming subscriptions has turned into maintaining streaming bundles that feel eerily close to the cable bundles of yesteryear.
Households can no longer rely on one Netflix (NFLX) subscription to stream all their favorite shows. Content is increasingly spread out across the platforms, and with prices going up, consumers are becoming more strategic about the services they want. As a result, subscription cancellations are on the rise.
Data Don’t Lie
Roughly 25% of Americans who subscribe to these premium streaming services opted to cancel at least three of them within the past two years, according to subscription analytics firm Antenna. Just two years ago, that number sat at 15%.
But, while subscribers may be getting pickier, the data suggest this is all part of a predictable consumption cycle, as viewers look to optimize according to their buying power. A quarter of those who cancel services typically resubscribe within four months, while a third do so within seven months.
Feeling the Pressure
Streaming providers are feeling mounting pressure to improve profitability and retain customers who are trying to save a few months worth of fees between their favorite shows dropping new seasons.
Low-cost ad-supported subscription tiers, discounts, free trials, and bundling subscriptions with rival companies are all aimed at retaining customers. Time will tell if that’s enough.
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