Monday, July 15, 2024

Can Bundles Help Stop the Streaming Churn Issue?

Streaming Services Survey Shows Benefits of Bundling for Consumers

The latest survey by Ampere Analysis reveals a surprising trend among U.S. TV viewers – 42% of consumers regularly subscribe to streaming services for a specific show, cancel, then resubscribe later. However, what’s even more fascinating is that those who resubscribe to the Disney+/Hulu/ESPN+ bundle are 59% less likely to churn within 12 months compared to those who only opt for Disney+.

This data has sparked interest in the potential impact of bundling streaming services to retain subscribers and reduce churn rates. Companies like Disney, Warner Bros. Discovery, and Comcast have already started offering bundled services, with Ampere Consumer data showing a great upsell and churn mitigation potential.

The study also sheds light on the characteristics of this 42% cohort, revealing that they are predominantly younger (18-44 years old), live in family households, and are avid media consumers. They consume a variety of media formats daily, but also exhibit signs of “subscription fatigue” and desire unified access to content across different services.

With only 15% of Disney+, Hulu, or Max subscribers taking all three services in the household, there is a significant upsell opportunity for bundled services to provide expanded content at discounted rates. Daniel Monaghan, Research Manager at Ampere Analysis, emphasizes the importance of reducing churn in a saturated SVoD market, highlighting that bundle-takers are less likely to churn compared to non-bundle resubscribers.

As more players in the industry adopt bundling strategies, the competition is expected to intensify. However, the limited overlap in uptake for bundled services suggests a promising future for upselling and retaining subscribers. This data-driven approach could be the key to securing the loyalty of both resubscribers and first-time users in the increasingly competitive streaming landscape.

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