In the United States, recent data indicates a growing trend of Americans canceling their subscription services for streaming platforms. Antenna, a subscription analytics company, has reported an increase in the monthly churn rate, signifying a rise in subscription cancellations or lapses.
According to Antenna’s findings, in November 2022, the monthly churn rate for major streaming services, including Apple TV+, Discovery+, Disney+, Hulu, Max, Netflix, Paramount+, Peacock, and Starz, stood at 5.1%. However, by November 2023, this rate had escalated to 6.3%.
The churn rate represents the pace at which customers discontinue their association with a particular service or entity. Approximately one-quarter of U.S. subscribers have reportedly terminated at least three major streaming services in the past two years, categorizing them as ‘serial churners,’ according to Brendan Brady, Media & Entertainment Lead for Antenna.
This cohort of consumers, who have canceled three or more services within the last two years, now constitutes 25% of streaming service users. Consumers, driven by the desire for more flexibility, are no longer adhering strictly to one streaming platform.
Roshanda Pratt, a wife and mother of three, shared her experience of managing multiple streaming services such as Peacock, Hulu, Amazon, and Apple TV. Pratt acknowledged the convenience of streaming but expressed concern over the accumulating fees associated with numerous subscriptions.
As consumers increasingly exercise their freedom to cancel subscriptions, industry experts anticipate a surge in bundle deals and promotional offers from streaming services aiming to retain and attract customers. Dan Rayburn, a streaming and online video expert, highlighted the complexity of the streaming business, noting the challenge of achieving profitability amid rising production and licensing costs. While companies may not disclose exact departure figures, the industry remains dynamic, adapting to consumer behavior and seeking sustainable models for long-term success.
