When it comes to canceling streaming services, it now seems as though the cost has overtaken the content. And with prices seemingly increasing every year, this would appear to now be an issue services will increasingly face when attempting to retain subscribers.
Key Takeaways
- Affordability now appears to be the #1 reason for cancellation, officially overtaking a lack of content as the primary driver of churn.
- Subscribers are increasingly canceling services immediately after finishing a specific series to avoid high ongoing costs.
- Lower-priced, ad-supported tiers can work well as retention tools, providing the ad experience doesn’t prove too frustrating for users.
As part of its latest Streaming Competition and Profitability: Pricing Models & Retention Strategies report, Parks Associates found affordability had become the dominant reason consumers cancel video services, overtaking content availability in the process.
According to the report, 30% of consumers in 2025 cited cutting household expenses as the top reason for canceling a streaming service. This compares to the 26% in 2020 that cited the same reason for canceling a video service.
In terms of content, only 17% cited the inability to find something to watch as the main reason for canceling.
In contrast, almost one-quarter (23%) of those surveyed cited finishing the series they were watching as the reason for canceling the service.
Although cycling between services is not uncommon, and something we routinely recommend, the finding here further adds to the suggestion that subscriptions prices are high enough that subscribers are now more likely to cancel the service after consuming the content they signed up to watch than stick with the service and see what it has to offer.
A notable exception here appears to be ad-supported plans. Due to their inherently cheaper prices, ad-supported tiers are proving to be more successful at retaining subscribers, according to the report.
“Consumers are no longer choosing between services, they’re choosing between price points,” said Michael Goodman, Director, Entertainment Research, Parks Associates. “Platforms that treat affordability as a retention strategy, not a discount tactic, are far better positioned to manage churn in this mature market.”
While ads appear to be a good way to retain subscribers, there is still the problem that ads in general remain one of the largest pain points for streaming consumers.
Based on these findings, the report suggests cheaper ad-supported tiers alone won’t necessarily help to maintain subscribers, but ad-supported plans that aren’t overly dependent on ads might.
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