LOS GATOS, Calif. – Based on reports from Bloomberg, streaming services such as Netflix lose 10% subscribers every month once their offer of free trial ends.
According to the report, only around one-third of streamers continue with the streaming service offers once the complimentary trial runs its course. The biggest fear of streaming services was also stirred when the same reports said that around 10% of subscribers cancel their subscription plans every month. The same fate is true for streaming service giants such as Netflix, Disney+, and YouTube TV.
The only good news about this report is that most of the streaming services have a number of new subscribers every month that outpaces the 10% subscribers they are losing.
A 10% loss of subscribers every month is a scary prospect for any streaming platform, which is some that Disney+ and Apple TV+ try to mitigate by releasing their shows weekly instead of putting it all in their content library at once.
On the other hand, other services including Netflix have focused more on offering streamers a growing list of content and exclusive programming that are only accessible through the subscription service.
Even more, streaming providers have offered customers promos, plus a Roku device free of charge, as long as they agree for several months of pre-payments.
In the coming 2020, one of the biggest battles for all streaming services is to find a way to ultimately keep their existing subscribers while looking for new ones.
Each streaming platforms are doing some ways to help lessen those cancel rates. For one, AT&T has rolled out contracts for its AT&T TV streaming service that lasts for two years, with an aim to lessen the number of subscribers that cancels a service after a couple of months.
With different systems put in place by each streaming service, the main question is what system will be the most effective at the ends of the day.