❮
❯
TRENDING
June 7, 2024
Streaming Service with the Lowest Churn Rate
Parks’ Streaming Video Tracker analysed churn data for 89 services, of which 85 are SVOD. Prime Video has the lowest churn rate at 8%. Topping the ranking with the highest churn is discovery+, at almost 43%. By: K Dass.
US - According to a recent study by Parks Associates,
Amazon Prime Video boasts the lowest churn rate among streaming services,
standing at 8%. This means that only eight out of 100 Prime Video members
cancel their service within a 12-month period. In contrast, streaming service
Discovery+ experiences a much higher churn rate, nearly reaching 43%.
Churn rate refers to
the percentage of subscribers who discontinue their subscription during a
specific time frame. It’s a critical metric for streaming platforms, as minimising
churn helps retain customers and maintain long-term engagement.
Amazon Prime Video with
its inclusion in the broader Amazon Prime membership, has consistently held the
lowest churn rate for the past two years. The bundling strategy with other
Amazon services contributes to its success in retaining subscribers.
Although not the
leader in churn reduction, Netflix continues to improve by adding more tiers of
service and offering syndicated content, such as the popular series “Suits”
from the former USA Network.
As the streaming
industry matures, companies are increasingly focused on retention strategies,
referrals, partnerships, and brand loyalty to keep consumers engaged. While
churn remains a standard part of the business model, platforms like Amazon
Prime Video are actively working to minimise it and enhance customer
satisfaction.
