Why more customers are canceling their streaming services in the U.S. Here is the reason

If media reports are to be believed, this year more people canceled their subscriptions to streaming platforms like Disney+, Netflix and Hulu than last year. According to the Wall Street Journal, defections across premium streamers rose 6.3% in November from 5.1% a year earlier. It also suggests that in the past two years, roughly 25% of those who subscribed to AppleTV+, Amazon’s PrimeVideo, Max, Peacock, Paramount+, Netflix, Hulu and Disney+ have canceled at least three of those options. It is an increase from 15% before hikes pushed the combined tab of the ad-free monthly costs for those eight streamers to $112.42 a month.

Streamers increase prices

Crystal Revis, a Lynn Haven, Fla., mother of six said to the New York Post that with the streaming services increasing their rates like they are, it’s like: ‘OK, do I pay for the cable?’

On the other hand, streamers increased their prices after they had come under pressure to improve profitability to offset the high costs of creating and licensing content.


These service providers have tried many options and a range of tactics to keep customers. They launched lower-cost ad-supported tiers, teamed up with rivals on bundled deals and provided discounts or free months of service, but the result was not satisfactory.

Customers return to appealing content

Analytics firm Antenna revealed that many customers who canceled service return to the streamers when there’s more appealing content available. Jonathan Carson, Co-founder and Chief Executive of Antenna said, "Retention doesn’t just mean holding on to a new subscriber the first time they get them. It’s about managing a relationship over a true customer lifetime."

The WSJ reported that among the US customers who joined Disney+ for the first time in November or converted from a trial, nearly 60% opted for the ad-supported tier. At Netflix, more than one-third of new US customers in November opted for the ad tier, compared to 11% a year earlier when the ad tier was introduced.

FAQs:

Why have the streamers increased their prices?
Streamers increased their prices after they had come under pressure to improve profitability to offset the high costs of creating and licensing content.

What did the streamers do to woo back customers?
The streamers tried many options and a range of tactics to keep customers. They launched lower-cost ad-supported tiers, teamed up with rivals on bundled deals and provided discounts or free months of service, but the result was not satisfactory.