Prime Video has the lowest churn rate at 8%, while streaming service Discovery+ is nearly at 43%, according to Parks Associates’ Streaming Video Tracker, which tracks churn data for 89 total services, of which 85 are SVOD services.
“Churn is part of the standard business model, but companies are working hard to minimize it and keep consumers engaged longer,” said Eric Sorensen, Director, Streaming Video Tracker, Parks Associates. “Amazon Prime Video has held the lowest churn rate for the last two years because it is included with Prime; however, Netflix continues to creep closer and reduce churn by adding more tiers of service and syndicated content. Streaming services are navigating a mature market where retention and referrals, as well as partnerships and brand loyalty are critical,” he added.
Recently, the company determined the average annualized industry churn rate for streaming services to be 50%, meaning many streaming services are also struggling to keep their customers. “This platform interface serves as the entry point for many households to their content services," Sorensen said at that time. "Competition for attention is extreme, while the continued rollout of the ATSC 3.0 standard gives viewers even more options, so in 2024, we will see increased consolidation, mergers, and acquisitions as all providers must find ways to innovate alongside the greater emphasis on profitability.”
Moreover, at the beginning of May, Hub Entertainment Research reported that, as Amazon Prime Video defaulted tens of millions of their subscribers into the ad-supported service, there was no measurable effect on either Amazon’s subscription levels or the overall rate of SVOD subscription. Similarly, AMC+, the other most recent entry into ad-supported streaming, saw no effect on their overall subscription rates.