“VideoAge” reported on the inefficacy of the streaming business’ operating model back in the streamers’ early stages.
Now, in addition to high operative costs, dependence on a large number of original series, financial losses, and highly competitive environment, The New York Times has highlighted the issue of high churn.
“Streaming TV Becomes World of Subscribe-Cancel-Repeat,” headlined the paper in its Sunday, April 21, 2024 edition, explaining that last year in the U.S., 40 percent of subscriptions were cancelled, but a third of subscribers re-subscribed to the canceled service within six months.
A solution to this high-level of churn is found in the highly profitable cable bundle, by selling streaming services together.
Americans are spending an average of $61 a month for four streaming services, an increase from $48 a year ago. The increase was due to higher fees, not to additional services, and 50 percent of surveyed subscribers said that they would cancel some of the services if prices went up another $5.
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