Many more people are jumping from one streaming subscription to another, a behavior that could have big implications for the entertainment industry.
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Americans are getting increasingly impulsive about hitting the cancellation button on their streaming services. More than 29 million — about a quarter of domestic paying streaming subscribers — have canceled three or more services over the last two years, according to Antenna, a subscription research firm. And the numbers are rising fast.
The data suggests a sharp shift in consumer behavior — far from the cable era, when viewers largely stuck with a single provider, as well as the early days of the so-called streaming wars, when people kept adding services without culling or jumping around.
Among these nomadic subscribers, some are taking advantage of how easy it is, with a monthly contract and simple click of a button, to hopscotch from one service to the next. Indeed, these users can be fickle — a third of them resubscribe to the canceled service within six months, according to Antenna’s research.
“In three years, this went from a very niche behavior to an absolute mainstream part of the market,” said Jonathan Carson, the chief executive of Antenna.
I’ve been waiting for the services to start requiring a year commitment or something equally dumb to prevent this behavior. I subscribe under two conditions : There is something I want to watch, and all the episodes are available. Once I’ve finished the content I subbed for, what is my incentive to stick around, exactly?
Unfortunately for streamers they can only churn out a season of my favorite shows every 2-3 years, and I’m not really about paying for availability to content that doesn’t interest me. Especially while those rates have doubled and tripled.
Yarr
This be the way maties!
It just makes economic sense.
The data suggests a sharp shift in consumer behavior — far from the cable era, when viewers largely stuck with a single provider, as well as the early days of the so-called streaming wars, when people kept adding services without culling or jumping around.
Yeah, turns out when the monopolies are eliminated, people get more competition and a better deal on the consumer end. It’s why I’ll never understand people who say streaming services became as bad as cable.
One option for slowing the churn, executives think, is to bring back some element of the cable bundle by selling streaming services together. Executives believe consumers would be less inclined to cancel a package that offered services from multiple companies.
No, I’m less likely to cancel a service that’s worth what you charge for it. Be happy you got one month out of me, and if you want more, offer me more value. Putting serialized shows out week by week doesn’t do it for me either, because I’m just going to wait until the season is done to start watching it anyway.
Price sensitivity is also a factor. Americans with a streaming subscription are spending an average of $61 a month for four services, an increase from $48 a year ago, according to a new study by Deloitte. The increase was due to higher prices, not additional services. Nearly half the people surveyed said they would cancel their favorite streaming service if monthly prices went up another $5, the study said.
Mystery solved.
The data suggests a sharp shift in consumer behavior — far from the cable era, when viewers largely stuck with a single provider,
What a stupidly obsequious statement. You didn’t change providers because you couldn’t. It wasn’t until satellite TV took off in the late 90s that people started having options for more than one subscription TV provider.
And now these financial geniuses are talking about bundling, when the whole reason this “problem” exists in the first place is because all of them yanked their content off Netflix to start their own streaming channels in the belief that they could be as profitable and as successful. Maybe they should try listening to what consumers want?
I prefer the weekly release schedule of shows. It’s something to look forward to and something to talk about week to week. A lot of people don’t want to hear spoilers either. Releasing all at once leads to that.
I do think there are those who would subscribe instantly instead of waiting for all shows to be released. Not everybody, but enough of them to stay for two to three months instead of just one and done.
Yeah, turns out when the monopolies are eliminated, people get more competition and a better deal on the consumer end. It’s why I’ll never understand people who say streaming services became as bad as cable.
I’d argue that streaming is in such a bad place right now because each streaming service has a monopoly on their own content. Sure, you could argue that studios “compete” with each other on the content they produce, but I’d argue that cable companies were a different layer of the stack entirely. Cable companies all offered the same channels and the same content, and in areas where they did overlap, competition to offer the best delivery of those channels was great. What made cable bad was that there was little incentive for companies to geographically compete. In the era of streaming, companies have little incentive to allow their content to compete across platforms.
If you ask me, every streaming platform should be broken up from their production parents, so that streaming companies can compete on what they offer, and how they deliver it. There is no incentive for the platforms themselves to compete with each other. It’s all about how hard the services can enshittify before people stop watching the content they have a monopoly on.
Cable companies still did the same practice too though, and even the ones that weren’t cable providers still negotiated with the providers that if you got channel A in this tier of service, you must also get channel B, and then Disney brings in a certain amount of money per channel in a given bundle every month. No matter how you slice it, even with the problems above, what we’ve got now is better.
This is why Uncle Sam made it illegal for movie studios to own their own movie theaters 100 years ago.
Movie theaters are a great analogy to what streaming services should be
I really don’t understand why streaming business are so surprised. They are providing television for rent and users are renting it plain and simple.They seem to think they are entitled to lengthy subscriptions from users when in reality they aren’t providing a service that’s even stable or worth it.
The Netflix model was only ever really sustainable as long as there was only one or two providers. As long as there was only Netflix people were quite happy to just stay with the subscription because all of the content was on one convenient platform.
If I want to watch popular shows and how I have to subscribe to five or six services. Why would I do that if they are all still going to be there in a couple of months.
if they are all still going to be there in a couple of months.
That’s the beauty of Netflix. They won’t.
They usually keep new shows at least for a year. And I suppose after that there’s no possible way of watching that content ever again, it’s lost into oblivion and certainly not available to download from a large number of locations.
Oh well
The Netflix model was only ever really sustainable as long as there was only one or two providers
The netflix model of streaming for cash was sustainable. The practice of gouging to where people will churn, that’s more widespread and an expected result.
The moment that I wasn’t allowed to do with my 6 accounts what I want to do, it was done for me.
Users: Fine if you want me to pay a monthly fee I’ll only pay 3 months of the year.
Streaming services: ShookYou’re probably being theoretical, but they’re definitely not surprised. Any actual confusion as to why an article like this can be cleared up when you consider the author isn’t really talking to us. Try reading it as if it’s a business brief, talking about us as a ‘problem’ that must be addressed. That ‘problem’ is we users are getting more value from the current model than was calculated by corporate.
Soon there will be another article (also addressing the room as if we’re not part of the discussion) detailing how corporate managed to “fix” it, and the revenue increases it brings. The other companies will follow suit to thunderous applause
Exactly. I want to watch 1 show and when I’m done I’m cancelling. I’m looking at your paramount plus.
What you mean the Star Trek streaming service with some extra stuff no on cares about?
Originally we went to get to watch RuPaul’s Drag Race but it doesn’t have the current season even though its the main attraction. Then when I saw that some Star Trek wasn’t on it we canceled within a week.
Paramount+ is especially bad. Tiny selection, mostly shit, costs as much as the other services.
Agreed. I have that shit for free because of where I work and have yet to watch a single thing on it. I mean there’s things I would’ve watched ideally, but my tastes have changed where I don’t want to revisit some things. Ah yes, they have the fucking Golf Masters on there. Paramount Plus’ selection looks like the home of all of those mundane shows you’d commonly find on cable TV. The ones you skip a lot of the time. They’re all here in one package that almost nobody wants unless they want to tap into nostalgia for some of the other ones, like the Nick shows.
And no Anime at all either.
Paramount+ ate the children’s entertainment app Noggin, which was primarily a streaming media and games app for the Nickelodeon crowd. It was commercial free, highly curated, and generally an exciting thing for the kids to open up and use to discover stuff like STEM games that were actually fun. Enshittification merged Noggin into Paramount, removed the recommendation algorithm geared towards kids, and shut down the Noggin app. Now Paramount is the only option and it’s horrible.
My wife wanted to watch the Grammys and when we saw it was on Paramount Plus we got it for 1 day. Afterwards I bought a 25 dollar over the air antennae so we can watch live CBS on the local affiliate for the once per year when we want to watch live TV. Isn’t worth it pretty much ever
they thought star trek would carry it… when that didn’t work, they shopped some of those titles around to play elsewhere and don’t even have their entire flagship franchise available anymore.
And the only new Star Trek show in the pipeline? A YA Starfleet Academy show starring Commandant Tilly.
I would be happy to keep subscribing for a reasonable price. But I’m starting to trim the fat as they continue to price gouge.
Sounds like streaming services should start doing automatic credit checks on sign up. Then jumping around would result in lowering credit score, just like jumping around cell providers. And they should all do it around the same time coincidentally.
I’m ready to accept an exorbitant consulting fee now. 💵🫲
Removed by mod
So I was thinking about subbing to Netflix again to watch something, and they had already deleted my account (it’s been about a year). So I went to my email to just try and verify that I was trying to login using the correct email address.
While doing this I found a statement from 2018. The price of Premium Netflix then was $13. Now it’s $23 I think. And they cracked down on password sharing so the service isn’t even as good, really.
Every one of these services has raised prices over and over, boiling us frogs in the pot, so it’s no wonder everyone now just subs for a month or two then bounces. It’s smart. The companies here are the stupid ones, chasing the all-mighty “line-go-up” quarterly statement MBA shit when they could have had loyal customers for years and years. I think I had a Netflix account for at least a decade or more (back when it was just mailing DVDs) until they started jumping the price by a few bucks every six months. It’s just not worth it to keep services around waiting for a show or two to come back.
Tbf, Netflix - along with Blockbuster - really was one of the pioneers in offering streaming services, when nobody else would. And it is not their fault that ISPs decided to throttle them, essentially holding their entire business hostage until they ponied up more dough, and now the content providers are doing the same. Also, most of the time they tend to grandfather people into older plans, so whatever the price is they usually (tbf, not always) tend to honor for many years in the future.
I am perpetually a year or less away from cancelling my own subscription b/c of how they continually skirt the line of pushing forward to do things like adding in “advertisements”, but then walking back to make them more bearable before they start losing customers like me in droves. So I am not exactly a full-on “fan” of Netflix, just trying to offer a balanced perspective.
They also did put in the work to make a SUPERB player, plus invested heavily in making apps for physical devices. It was only this year that I finally stopped being able to play Netflix on my 9-year-old TV, and even that has a heavy chance of being more the fault of the device itself (I mostly don’t care b/c my Chromecast still works just fine). Plus I still can do things like e.g. go workout in a gym while watching a pre-downloaded Netflix video without needing to use any of my mobile data, all that needing virtually no setup at all, unlike e.g. piracy that would require paying for a VPN and investigation into what mobile apps are available, plus constant monitoring to see if they remain trustworthy (so many famous examples of apps that got taken over from the inside by a malicious update).
Even so I may still leave it in a year or two, regardless of whether it is their fault or not, b/c I am not sure that I am getting anywhere close to the “value” for the amount that they are charging, anymore:-(. Seeing shows come out like Stranger Things gave me some hope, but then watching that same show enshittify itself immediately for the sake of chasing after profits to the exclusion of all else quickly killed it.
Though in that case I will need to research some alternatives…
Having used Disney and Paramount apps, I’m blown away by how much better the Netflix user experience is.
I have never seen those others but damn, that… does not sound good:-|.
I’ve practically never had a connection issue with Netflix:-). Among the shit-ton of evil companies out there, they are themselves no shining angels but… they don’t seem nearly as bad as the rest of them imho.
I mean their selection keeps getting worse, but the app is responsive and intuitive, which is more than can be said for either of those other ones.
My thoughts about Netflix are the same: I am less than happy about the content - which is beyond their control - but very happy with the apps that they offer that is totally within their control.
Netflix […] tend to grandfather people into older plans, so whatever the price is they usually (tbf, not always) tend to honor
Where’s this? I’ve yet to hear of this happening ever.
You aren’t rich enough to get this…
I think Blockbuster became a legend of failed business strategies because it didn’t offer streaming when no one else would. They waited until Netflix grabbed all the momentum for streaming to try their own, sad service.
During the writer’s strike, I watched an interview with an industry insider and member of the WGA. He mentioned that it’s been well known to the industry that people are subscribing for one month to binge watch and then unsubscribe. I was a little surprised to hear this was already such a common practice and the industry was, in part, renegotiating contracts with this in mind. Personally, I’ve been doing a version of this since Netflix first started online streaming.
I don’t currently have any streaming service plans in large part because they keep increasing the prices. These services are fine for the prices they used to be but they keep raising prices. Perhaps the content is better but it’s not like my life is impacted by a slightly better tv show or movie - an hour of content is an hour of content. If you want to make better stuff, create another service or offer a higher subscription tier. I’m voting with my wallet and I’m not allowing social pressures to dictate where I get my entertainment. Let’s not lose sight that this is entertainment we’re talking about.
The other issues I have with them, incidentally, are poor content and poor user experiences. I cancelled my Netflix subscription because they implemented auto-playing trailers. I’ve stopped using Apple TV entirely because they too have implemented auto-playing trailers.
At this point, getting up to change the channel with a rotary knob might be a better experience than most of these streaming platforms. In fact, I’ve been watching a lot of Pluto and Tubi lately. They have ads but they’re relatively minimal and they’re placed in appropriate places in the program.
🏴☠️
Tbf, Netflix did start auto-playing crap but then walked back on that. They do that continually - pushing the boundaries past what people are willing to take, then a few months later dialing it WAY down, but still forward from where it started. Although more recently they did get it to a nice place imho - if you have a friend with a subscription, check it out and you may be pleasantly surprised. I am not saying that it makes up for the loss of content that they used to have, or that it is a fully good experience, but it is a LOT better than it was there for awhile (so: not that you would consider ever going back, but at least you would know:-).
They do that continually - pushing the boundaries past what people are willing to take, then a few months later dialing it WAY down, but still forward from where it started.
I had a boss like that. What a fucking dickhead.
Had.
Price gouging plus adding ads to paid services. Time to yarr
plus adding ads to paid services
No, no, no.
Remove the ad-supported tiers from your mind. Pay the amount for ad-free watching. Compare the rates and affordability of that package only, and when it becomes non-viable then fucking bounce SO HARD. Ad-supported crap needs to be forgotten so it can cease to exist.
If we want ads, we have Pluto. Either take my money and my personal info or show me ads. PICK A LANE.
Netflix bungled this. They could have said “starting on January 1, 2022, no new accounts will be able to share passwords between households.”
No one would cancel. Some would probably go to a cheaper tier but would keep their accounts active forever. Plus, people who share accounts don’t cancel because their family members might be watching. Netflix’s churn rate would have embarrassed HBO and Disney.
But no, they are chasing shortsighted, anti-customer gains and now are reaping what they sowed.
Mark my words. They will be switching to the car insurance model soon. You will have to pay for blocks of time. 3 mos, 6 mos, 12 mos. Probably also demand to be able to debit your bank acct. directly.
It’s already 1 month or 12 months. The obvious gap-filler there is to charge more for new activations. New subscribers are $25.99 for the first month, then only $16.99/month after.
When this happens I hope PayPal or Klarna has a usable emulant I can give Netflix so they’ll fuck off AND not get power to my actual banking.
Have you tried Bittorrent with Proton VPN? It’s great for downloading Linux ISOs. I know that’s not related to this conversation, I just felt like you might want to download some Linux ISOs.
Also https://1337x.to has a great directory of Linux ISOs you can download.
ahoy matey
We be consistent on the high seas, yarg.
Laughing in Plex server
Plex is deep in the enshitification process. I’d consider spinning up Jellyfin alongside it so you switch relatively painlessly when you decide that Plex’s bullshit has gone too far.
Even if you never reach that point, it’ll be useful to have a media server that won’t lock you out if you ever lose your Internet connection for an extended period of time
No reason they can’t run alongside each other, in case your concerned about resources or storage.
I agree with you; Plex is completely enshittified. Unfortunately, Jellyfin still lacks apps for some platforms, even though they recently added webOS (old versions included) so the situation is slowly getting better.
You can change the settings in Plex and still access it locally without Internet connection. But yeah Plex is kinda behind the curve on a lot of things, although jellyfin has it’s own issues
Plex requires an account and that account has to connect to an external Plex authentication server every so often. If that token expires and you have no internet, you will be locked out of your Plex.
You can disable auth on your local network. I’ve never experienced any issues with my authentication token expiring without having Internet, and I had my Plex server offline for months last year while I was living in a place that didn’t have Internet. For some reason though it runs noticeably shittier without Internet, it takes a long time for a video file to load.
I couldnt get jelly to see my external drives
Laughs in VLC and HDMI out
… ⛵️
To me this is the way the streaming companies have designed it, with fracturing content.
Yep. They should have settled for passive income and left their content on Netflix.
In three years, this went from a very niche behavior to an absolute mainstream part of the market
It’s because of the fracturing of the marketplace. For a while there were only a few major Film/TV streaming services. Netflix and Hulu, then HBO and Amazon, and a handful of niche or genre platforms.
Then around the pandemic time, every network and their mother decided to pull their licensing to start their own streaming platform or several. The platforms all cost as much or more as before, but you need more of them to watch the different IP you are interested in.What the studios don’t realize (or won’t publicly admit) is that instead of replacing cable TV, they have effectively recreated the video rental industry.
