Sure enough, this has spurred a lot of “hoppers,” or consumers who cancel and re-subscribe repeatedly to many different apps. Netflix releases a new season of “Cobra Kai,” so they binge that one month, then switch to whatever’s on Disney+ for the next billing cycle. As of the third quarter, 61% of U.S. households subscribed to two or more streaming services, while a third of hoppers subscribed to five or more, according to industry researcher Parks Associates. But 17% of hoppers also canceled five or more services in the past 12 months. This is a nightmare for the media companies because it creates a ton of volatility in their financial results.
From the article "Netflix Investors, We Need to Talk About Churn" by Tara Lachapelle.
In fact, since 2013, the percentage of broadband households in the nation using only antennas to watch linear TV has jumped from 9 percent to 15 percent, according to data released this month by Parks...
Pay-TV services are showing their age as subscribership continues to fall, leading to a projected 76.7 million subscriber decrease by 2024, according to a report by Parks Associates. This drop wou...
Amazon also offers transactional (both purchase and rental) and subscription streaming through Amazon Prime Video, continuing to forge partnerships with cablers such as Cox, which added the service to...
According to Parks Associates, it only gets worse from here. In its 2022 “OTT Streaming Trends to Watch” white paper, their data shows that the average churn rate was 40% in 2020. Right now, the avera...
