Streaming Service Cancellations on the Rise in the US: Report
Recent data from subscription-analytics provider Antenna indicates a growing trend of customers canceling their streaming service subscriptions, the United States, reports the Wall Street Journal.
In November, premium streaming services saw customer defections rise to 6.3%, up from 5.1% the previous year. Antenna’s data further reveals that about one-quarter of U.S. subscribers to major streaming services have canceled at least three of them over the past two years, a significant increase from 15% two years ago.
Antenna’s co-founder and CEO, Jonathan Carson, emphasizes the importance of retention, stating, “Retention doesn’t just mean holding on to a new subscriber the first time they get them. It’s about managing a relationship over a true customer lifetime.” This shift in customer behavior suggests that streaming users are becoming increasingly selective and cost-conscious.
The data from Antenna also sheds light on the strategies streaming companies are employing to win back customers. For instance, nearly 60% of new U.S. Disney+ customers in November opted for the ad-supported tier, a substantial increase from 25% in December 2022. Similarly, more than one-third of new U.S. Netflix customers in November chose the ad tier, compared with 11% a year earlier.
Antenna’s findings also highlight the effectiveness of bundling strategies. Verizon, for example, began offering a bundle that includes the ad-supported tiers of Netflix and Max for about $10 a month, compared to the standard rate of about $17.
There was no Canadian data on streaming service cancellations in the report, but given how we’ve seen Disney+ and Apple TV+ increase in price, plus the changes to ads in services like Prime Video, it’s clear that streaming prices are going full circle and can now add up to the cost of cable TV.
Have you cancelled any streaming services in Canada lately?