The American company specializing in the management of the purchasing behavior of subscribers Antenna has carried out analyzes in order to measure the behavior of the main American platforms. Work taken over by Matthew Ball , specialist in media and former “Head of Strategy for Amazon Studios” from 2016 to 2018.
Very variable rates depending on the platform
Antenna establishes a ranking of platform churn in the United States, specifying that since the start of the "streaming war" in November 2019, the monthly average churn rate climbed from 5.2 to 6.4%.
The worst performing platform is Apple TV + which hasa churn rate of between 15 and 20% monthly. To compress it, Apple has taken the decision to extend the free periods of its service for all new buyers of Apple devices twice in a row. Antenna also considers that Peacock and CBS All Access must modify their offer to curb a much higher than average churn rate. Netflix stands out as the champion of churn, with an average rate of around 2.5%, apart from the crisis that affected the site with the controversy around the film "Mignonnes" which caused the signing of 660,000 people on change.org for #CancelNetflix.
Disney + overshadows its competitors
Antenna also mentions that when a household subscribes to Disney +, it is likely to abangive an SVOD service to which it is already subscribed. In this battle for service arbitrage, Netflix does the best once, with an incremental churn rate averaging around 2%. On the other hand, the other services taken in comparison are much more impacted such as HBO Max, Starz or CBS All Access.
Churn, retention, loyalty
Once a subscriber has been lost, once the retention actions have been exhausted, Antenna has measured the time taken by the subscribers to return to their platform terminated. While subscribers take a year to return to Starz or Showtime, half of Hulu and Netflix churners re-subscribe within 6 months. But that's not all, once back, you still have to be able to save themder and to this game, 2/3 of HBO, Starz and Showtime subscribers leave within 6 months. For Hulu and Netflix, 60% remain.
Netflix, a leader difficult to dethrone
Antenna also highlights the fact that Netflix has the lowest churn rate of all the major SVOD platforms; which translates into a loyalty rate particularly high: for example, for new subscribers in December 2019, we see that they are still 68% to be subscribed to Netflix 12 months later, while the median rate of SVOD is at 45%, i.e. more than one in two subscribers who churn at the end of 12 months. By zooming in on the second half of 2020, Netflix maintains its leadership by posting a termination rate (churn rate) of2.7% when the median market figure is 6.8%.
More than 3 out of 4 subscribers remain with Netflix after 4 months
Starting from the June 2020 benchmark, things don't change. Netflix has a lower attrition rate than its direct HBO competitors Max and Disney +, which allows it to retain 77% of its new subscribers at the end of 4 months, when HBO Max retains 70% and Disney + 69%. These figures will of course have to be confirmed over time, the competition evolving strongly. speed.
Netflix vs Disney +
A study on the rate of churn cannot be closed without having analyzed theclash between Netflix and Disney +. It is still too early to have the necessary perspective on the gaps between the two services, but these first reports indicate that Netflix has a better retention rate than Disney + (71% for Netflix and 56% for Disney +).
The more services increase, the more exclusive the programs, the more the price variations will be significant, the more the churn rate will increase and force the platform editors to control this variable with great care.