Streaming Surges, But Subscribers Keep Cycling Through Services
Despite a surge in streaming viewership, subscribers continue to cycle through platforms, with Netflix leading in retention, according to Samba TV’s latest report.
Bollywood Fever: As streaming continues to dominate the entertainment landscape, subscribers are increasingly cycling through premium services rather than committing long-term to any one platform, according to Samba TV’s latest State of Viewership Report.
U.S. households watched a record level of streaming content in the first half of 2024, up 40% from the same period in 2023.
However, the report also reveals that around 44% of subscribers are only willing to engage with one or two streaming platforms within a six-month period.
Subscription Video On Demand (SVOD) platforms continue to add subscribers each quarter, but cancellations have also risen, leading to a net gain of just 4.8 million subscribers in Q1 2024 — a drop of over 3 million from the previous quarter.
This trend underscores the growing challenge of subscriber retention in a highly competitive streaming market.
Samba’s data highlights that viewers often subscribe to a platform specifically for one piece of content, only to leave once they’ve finished watching it.
The major exception to this trend is Netflix, which has excelled at retaining viewers through its sophisticated content recommendation algorithm.
Netflix boasted the lowest churn rate among streaming platforms and accounted for 60% of the Top 50 shows in the first half of the year, with titles like Fool Me Once, Griselda, American Nightmare, Bridgerton, and The Gentlemen dominating the rankings.
Other platforms see a surge in subscribers for buzzy new releases, such as Peacock’s Ted, AppleTV’s Masters of the Air, and FX’s Shōgun (available on Hulu and Disney+).
Popular returning series like House of the Dragon, True Detective, and Reacher also drew significant viewership.
However, once these shows conclude, many subscribers leave the service until another highly anticipated release draws them back.
To combat churn, bundling services is emerging as a potential solution. Samba’s data indicates that subscribers to bundles like the Disney Bundle and Apple One are less likely to cancel than those subscribed to individual services.
This approach could prove crucial for platforms looking to maintain a steady subscriber base.
Meanwhile, traditional linear TV consumption continues to decline, with a 1% drop in the first half of 2024.
As more live sports move to streaming, cord-cutting is accelerating, and the average daily reach of linear TV fell by 2% in the same period.
Despite this shift, live sports remain a stronghold for linear programming, with Super Bowl LVIII topping the viewership charts at 39 million views, followed by other NFL playoff games.
As the streaming landscape evolves, platforms face the ongoing challenge of retaining subscribers in an environment where viewers are increasingly selective about where they spend their time and money.
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