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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.

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