Streaming Subscribers Have Itchy Trigger Fingers During COVID-19, With Churn Rate Rising To 41% – Report

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Streaming Subscribers Have Itchy Trigger Fingers During COVID-19, With Churn Rate Rising To 41% – Report
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The overall “churn” rate, reflecting how many customers cancel their subscriptions to streaming services, rose to 41% during the first quarter of 2020 from 35% in the same period of 2019

The overall “churn” rate, reflecting how many customers cancel their subscriptions toResearch firmrevealed the statistic Monday, describing it as a gauge of consumers experimenting with streaming during COVID-19 shutdowns. The past few months have also seen the launch of several new streaming services, including Disney+, Apple TV+ and HBO Max. Peacock, which initially debuted in the Comcast footprint, will launch nationally on July 15.

Nason’s report didn’t break out individual services in terms of churn rate. In response to emailed questions from Deadline, he wrote, “In general, large foundational services such as Netflix, Amazon Prime Video, and Hulu have lower churn rates.” Those major services, which have all operated for more than a decade “form the base of an OTT video consumer’s service stack and are typically deemed more essential.

The newest entrants in the streaming derby, notably the traditional media companies, face particularly stiff challenges during the pandemic. They need to acquire customers directly — a relatively new process in the larger context of third-party distribution via pay-TV — and they also need to retain them.

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