Three in ten US households cancel streaming subscriptions to save money

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.

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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.

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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.

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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.

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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.

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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.

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“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