Consulting firm Magid today offered predictions for the entertainment industry, and streaming in particular, in 2024. It predicted increased churn among the major streamers as FAST channels proliferate and the monthly price for a subscription to a premium streaming network goes up.
Services should compete for certain high-value subscribers, even if they’re likely to drop out eventually, Magid says.
A new Deloitte report suggests more than 60% of people who dropped a streaming service did so after they watched the show or movie that got them to sign up.
People on average pay for three subscription OTT services, and around 7% of households have more than five. Of these subscription bundles, 11% of people have Netflix and Amazon subscriptions with a third streaming service. Although niche services tend to have higher churn rates, annual rates of around 30% compared with 20% for broader-content streaming services like Netflix or Amazon.
Churn rates for OTT video services are 19% of U.S. broadband households, according to a new Parks Associates report, suggesting that about one in five households have cancelled an OTT service in the past 12 months. Overall churn rate for OTT services has been stable for the past year, with major OTT video providers Netflix, Amazon,and Hulu all reducing their churn rates.
