It would seem subscribers remain subscribed to Netflix and Prime Video for longer than other streaming services. According to the new research, both streaming services keep hold of subscribers for more than four years on average.
One of the big changes currently taking place within the streaming space is consolidation. In one example, we have Paramount+, with a subscription also now unlocking access to Showtime. Another good example is Max, which not only unlocks access to HBO and Warner Bros. content, but also Discovery+ content as well.
While these services offer better value now, Parks Associates suggests consolidation “is having a limited effect on churn for these services.” In general, Parks Associates found that subscriptions to premium service average around two years.
Netflix and Prime Video lead the way overall with an average duration per subscriber of more than 50 months each. Following these two services is Hulu, with less than 40 months, and Hulu is then followed by Starz and Paramount+. Both of which tend to see an average duration per subscriber of a little over 20 months.
Right behind Starz and Paramount is Disney+, which also sees an average duration per subscriber of just over 20 months. Max, Apple TV+, and Peacock complete the list, and all rank between 10 and 20 months each.
With Netflix, Prime Video, Hulu and Starz having been around a lot longer than some of the other streaming services on this list, that familiarity may play somewhat into why they seem to maintain subscribers for longer on average. In Prime Video’s case, it also has the added benefit of being entwined with Prime membership, potentially increasing how long people remain a subscriber for.
Peacock is an interesting one to focus on here. While seemingly last in terms of average duration per subscriber, it is also a service that is increasingly focusing on sports. With sports being as seasonal as it is, it is possible that subscribers to Peacock may come and go more often than subscribers to other streaming services. While this may result in higher levels of churn initially, it also guarantees the return of those subscribers when their favorite sport starts back up again the next year.
Another factor with the potential to disrupt these durations and rankings in the next few years is price. With cost increasingly becoming an issue, and forcing more homes to choose between steaming services more often, it is possible that the services offering the most value, be it in terms of content, sports, or live TV, could become the ones that appeal more over the long term.