Streaming Entertainment News

New Study Reveals Which Streamer Garners the Most Loyalty – It’s Not Netflix

Amazon Prime Video has emerged as a new leader in the streaming industry, boasting the lowest customer cancellation rate, according to a recent study by Parks Associates. With an annual churn rate of just 8 percent, Prime Video stands out as a platform with high subscriber loyalty. In comparison, Discovery+ struggles with a staggering annual churn rate of 43 percent, indicating a significant challenge in retaining subscribers.

The disparity in churn rates becomes even more apparent when looking at other major streaming services. Hulu, Max (formerly HBO Max), and Peacock each have churn rates of 15-17 percent, while Disney+ sits at 21 percent and Paramount+ at 24 percent. Apple TV+ falls slightly above Discovery+ with a churn rate of 40 percent, suggesting a need for improved subscriber retention strategies.

One key factor contributing to Prime Video’s success is its integration with Amazon Prime memberships, providing access to a wide range of content alongside other benefits like fast shipping. While the exact number of Prime Video subscribers remains undisclosed, it’s estimated to be in the hundreds of millions, highlighting the platform’s extensive reach and appeal.

On the flip side, Discovery+ faces stiff competition, particularly following the rebranding and expansion of HBO Max. With Max offering a comprehensive selection of programming, including content from Discovery+, subscribers may find it more enticing to opt for a subscription that encompasses a broader range of entertainment options.

While Netflix continues to lead the streaming market, its annual churn rate of 9 percent suggests room for improvement compared to Prime Video’s 8 percent. The introduction of multiple service tiers and syndicated content like “Suits” has helped Netflix maintain its subscriber base, with efforts to reduce churn rates ongoing.

According to Eric Sorensen, director of Parks Associates’ Streaming Video Tracker, Netflix is gradually closing the gap with Prime Video in terms of annual churn rates. The industry-wide average annual churn rate for OTT services stands at 47 percent, indicating the challenges faced by niche players in a competitive streaming landscape.

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