Gen Z leads in streaming subscription churn, survey finds

The latest survey from TransUnion offers a window into the viewing habits of Gen Z, indicating a higher propensity among this demographic to cancel streaming subscriptions.

In a pool of 3,000 adults surveyed from late September to early October 2023, 30% of Gen Z individuals reported discontinuing more than one streaming service over the past six months, with an equal percentage having canceled at least one.

Despite these notable percentages, Gen Z’s cancellation rates fall below the average across all age groups surveyed.

In contrast, 24% of all respondents had dropped one service, while 15% had ended more than one subscription. Millennials reported slightly higher rates, with 32% canceling one service and 18% cutting ties with multiple services.

Yet, only 31% of Gen Z consumers have stuck with all their streaming services in the past half-year, compared to 47% of all survey participants and 40% of millennials. This behavior underscores the reputation of Gen Z as being the most unpredictable consumer group in the streaming service market.

The primary catalyst driving these cancellations is cost-related, with over half of the respondents (52%) indicating that increased subscription prices prompted their decision to cancel. This sentiment was echoed by 43% of Gen Z and 53% of millennials. Other reasons for cancellation included finishing a show or movie exclusive to a service, a lack of fresh content, and accessing someone else’s account.

The survey also delved into attitudes toward ad-supported streaming options, revealing differing generational preferences.

About one-third of all respondents acknowledged having ads across all their streaming services, with Gen Z at 29% and millennials at 40%. Conversely, 51% of Gen Z, 46% of millennials, and 44% of all participants reported that some of their streaming services included ads. Only a small fraction—14% of millennials and 21% of Gen Z—stated that their streaming platforms were entirely ad-free.

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These findings underscore the necessity for streaming services to evolve with the fluid preferences of Gen Z consumers, who are clearly impacted by pricing strategies and the desire for non-stop new content. As the streaming wars intensify, the challenge for platforms will be to devise innovative ways to retain the attention and loyalty of this pivotal generation.