A new survey from Ampere Analysis reveals that 42% of U.S. TV viewers regularly subscribe to streaming services to watch specific shows, then cancel and resubscribe later. However, the survey also found that Disney subscribers who had churned and then returned to the Disney+/Hulu/ESPN+ bundle were 59% less likely to churn within 12 months compared to those who only subscribed to Disney+ alone. This data suggests that bundling streaming services could have a significant impact on reducing churn rates among these “regular” subscribers.
The trend of bundling streaming services has been on the rise recently, with companies like Disney, Warner Bros. Discovery, and Comcast offering multiple services through a single subscription. Ampere Consumer data indicates that there is currently limited overlap in the uptake of these services, which suggests a great potential for upselling and churn mitigation. The study also shows that the majority of the 42% of consumers who regularly subscribe, cancel, and resubscribe skew younger (18-44 years old) and are more likely to be in family households, indicating a strong market for bundled services among avid media consumers.
As the SVoD market in the U.S. becomes more saturated and acquiring new subscribers becomes more challenging, the importance of retention is emphasized. Ampere’s Research Manager, Daniel Monaghan, highlights the importance of reducing churn behavior among subscribers to boost platforms’ revenues. The data analyzed by Ampere shows that churn rates are significantly lower for bundle-takers compared to non-bundle resubscribers, indicating the potential benefits of bundled services in retaining both resubscribers and first-time subscribers in the competitive streaming landscape.
