Streaming bundles may curb cancel-and-resubscribe behavior, Ampere notes

By NewscastStudio

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Research from Ampere Analysis indicates that subscribers to the Disney+/Hulu/ESPN+ bundle are significantly less likely to churn than those subscribing to Disney+ alone.

The analysis highlights a 59 percent reduction in churn within 12 months for bundle subscribers. This finding underscores the potential impact of service bundling on the 42 percent of U.S. streaming subscribers who frequently subscribe, cancel, and resubscribe.

Ampere Consumer data suggests that the bundling of streaming services by companies like Disney, Warner Bros Discovery, and Comcast is becoming increasingly popular. Despite the current limited overlap in service uptake, there is substantial potential for upselling and reducing churn through bundled offerings.

Key findings from the analysis show that 42 percent of U.S. consumers often subscribe and then cancel their video-on-demand services, re-subscribing only when there is content of interest. This group, primarily aged 18-44 and often from family households, consumes a wide range of media, including TV, video, video games, and music services. However, this broad consumption leads to a higher likelihood of subscription fatigue, with 21 percent of these users desiring unified access to content across different services.

Ampere’s SVoD Economics US service analysis reveals that subscribers to the Disney bundle in Q1 2023 were much less likely to churn within a year than standalone Disney+ subscribers. This demonstrates that bundles are an effective strategy for mitigating the cancel-and-resubscribe behavior.

Additionally, recent announcements from Disney and Warner Bros Discovery, as well as Comcast, indicate that bundles including competing streaming services are being introduced to improve subscriber retention.

Ampere’s Q1 2024 Media Consumer data shows that only 15 percent of the subscriber base for Disney+, Hulu, or Max have all three services in their household, and just 10 percent of Comcast’s mobile, broadband, and TV customers subscribe to Peacock, Netflix, or Apple TV+. This indicates a significant opportunity for upselling through bundled services.

Daniel Monaghan, Research Manager at Ampere Analysis, noted, “As the SVoD market in the U.S. becomes increasingly saturated, retaining subscribers becomes crucial. Our data shows that bundles significantly reduce churn compared to standalone subscriptions. With limited overlap in current uptake, bundling presents a strong opportunity for upselling and improving retention.”

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