Streaming Entertainment News

New Study Reveals: Netflix Falls Short in Inspiring Viewer Devotion, Which Streamer Reigns Supreme?

Amazon Prime Video has emerged as the new leader in customer retention in the streaming industry, boasting the lowest churn rate according to a recent study by Parks Associates. The study revealed that Prime Video’s annual churn rate stands at 8 percent, indicating that eight out of 100 Prime Video members cancel their subscription within a 12-month period. This figure positions Prime Video ahead of its competitors, including industry giants like Netflix.

In contrast, Discovery+ faces a significant challenge in retaining subscribers, with an alarming annual churn rate of 43 percent. The disparity between Prime Video’s retention rate and that of other major streaming platforms is evident. Hulu, HBO Max, Peacock, Disney+, and Paramount+ reported churn rates ranging from 15 percent to 24 percent during the same period.

Apple TV+ narrowly surpassed Discovery+ with a churn rate of 40 percent, likely influenced by the fluctuating viewership patterns surrounding popular shows like “Ted Lasso.” The series’ Season 3 premiere and finale likely attracted and subsequently lost a substantial number of subscribers within a short timeframe.

The success of Prime Video can be attributed to its integration with Amazon Prime memberships, which offer additional benefits beyond streaming services. In contrast, the appeal of Discovery+ has been overshadowed by the rebranding and expansion of HBO Max, which now includes a vast array of Discovery+ content alongside premium HBO and Warner Bros. offerings.

While Netflix remains a dominant force in the streaming landscape, boasting a monthly churn rate of 2 percent, its annual churn rate of 9 percent suggests room for improvement. The introduction of multiple service tiers and syndicated content like “Suits” has helped Netflix maintain its subscriber base, inching closer to Prime Video’s retention levels.

According to Eric Sorensen, director of Parks Associates’ Streaming Video Tracker, Netflix’s strategic initiatives have contributed to narrowing the gap with Prime Video’s churn rate. The quarterly consumer survey conducted by Parks Associates tracks churn data for various streaming services, revealing an average annual churn rate of 47 percent across the OTT landscape, indicating the challenges faced by niche players in retaining subscribers.