Key Takeaway:
The study by Hub Entertainment Research finds that consumers are using more streaming services than ever before, but are struggling to manage them. This has led to "revolving door churn," where viewers frequently subscribe and unsubscribe to services. However, the study suggests that better bundles that help consumers manage multiple services could reduce this churn and improve customer loyalty.
Trend:
The trend is towards an increasingly fragmented streaming landscape, with viewers subscribing to multiple services to access the content they want. This is creating challenges for both consumers and streaming providers, as viewers struggle to manage multiple subscriptions and providers experience high churn rates.
Findings:
Consumers use an average of 7.4 TV sources, including traditional and digital platforms.
50% of viewers subscribe to three or more major streaming services (Netflix, Amazon Prime, Disney+, Hulu & Max).
Nearly two-thirds of viewers use FAST services (like TUBI or Pluto).
Roughly a third of viewers exhibit "revolving door churn," intending to both add and drop services in the next six months.
Nearly three-quarters of consumers find a service that could help manage multiple subscriptions appealing.
Conclusions:
The fragmented streaming landscape is overwhelming consumers and leading to high churn rates.
Better bundles that help consumers manage multiple services could reduce churn and improve customer loyalty.
Streaming providers and distributors have an opportunity to offer more streamlined solutions that address consumers' needs and preferences.
Implications for Brands:
Streaming providers should focus on developing bundles that offer a clear value proposition and make it easier for consumers to manage multiple subscriptions.
Brands should communicate the benefits of their bundles clearly and concisely to attract and retain customers.
The development of platforms or services that help consumers manage multiple subscriptions could be a lucrative opportunity for companies in the streaming industry.
Brands should prioritize customer experience and satisfaction to reduce churn and build long-term loyalty.
Comments