To Cut Streaming Churn, Both Added Value and Content Are Key

When it comes to streaming services, retaining current subscribers is becoming just as urgent as recruiting new users. Fandom, the online home of in-depth discussions on all things pop culture, gaming, TV and film, aims to answer that question with its State of Streaming report. The global survey of 5,500 users is the platform’s second annual overview of streaming habits, this time focusing on how to build platform loyalty. Reducing churn The average Fandom user subscribes to five streaming services, and they’re not happy about it. Just 45% are willing to add another one to the mix, while 74% are constantly evaluating whether to keep their current services. What keeps them around? The top reason, cited by 76% of respondents, was a large library of content. Ironically, however, 59% also griped that there are too many shows being released. Having one of the largest libraries didn’t help Amazon Prime Video, which was named a favorite service by just 3% of respondents. Perhaps this is why stalwarts like The Office perennially top the list of most-streamed shows? As for why people cancel their subscriptions, cost is the leading explanation, with 61% believing streaming services are too expensive. Viewers said streamers should charge $7.46 monthly—for comparison, Netflix just raised its prices on March 30 to $15.49 per month for its standard tier, up from $13.99. Consumers would like to pay about two-thirds of that. Fostering loyalty So how can streamers keep people engaged and coming back? The answer won’t surprise anyone paying attention to the glut of sequels movie studios churn out. Successful franchises that grow beyond their original iteration keep viewers engaged in what Fandom calls “always-on fan exploration.” Think movies that spawn TV series (Marvel Cinematic Universe); stories that take place before and after the main event (HBO Max’s upcoming Game of Thrones prequel series House of the Dragon and its Sex and the City sequel And Just Like That…); and cartoons featuring familiar IP for a different generation of viewers. Unsurprisingly, given the success of The Mandalorian, Disney’s Star Wars topped the list of franchises that live rent-free in people’s minds, followed by Disney itself, Harry Potter and Marvel. But there’s more than content that can keep subscribers sticking around. Nearly three-quarters (73%) of fans would justify the cost of a streaming service if it offered exclusives such as behind-the-scenes content like Peacock created for The Office and access to merchandise. Another way to retain subscribers is creating partnerships, such as with a food delivery service (45% of respondents said this would enhance their viewing experience). And 32% of fans would find value in bundling their subscription with a gaming service, which Amazon and Netflix have already launched. Beyond the home The news for theaters was mixed. While 80% of Fandom users have or are willing to return to theaters, 74% would also wait for the movie to be released on one of their streaming services. Two positives cited about home viewing were the ability to pause the film (82%) and watching with subtitles (61%). How Passion for Data Led to a Top Streaming Gig at Paramount

Streaming & OTT

To Cut Streaming Churn, Both Added Value and Content Are Key

A new survey looks at building loyalty in an increasingly crowded—and expensive—field

Reducing churn

Eva Kis

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Reducing churn

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Eva Kis