20 to 40% of subscribers plan to cancel their streaming subscription within the next year.
Consulting firm Simon-Kucher’s latest study, Global Streaming Study, on streaming behavior and consumer preferences shows that while subscribers perceive major players’ prices to be consistent with the perceived value of their product, their current positioning hardly does or no room at all for direct prices to increase. Increasing prices without increasing the perceived value of the product could be costly for streaming platforms and lead to churn risks in a competitive market.
The study shows that consumers perceive little difference between the offerings of dominant platforms such as Netflix and Amazon and that their appetite for new offerings is growing.
According to the same study, 20% to 40% of subscribers plan to cancel their streaming subscription in the next year, even without considering price increases, and 40% would consider canceling their subscription if prices increase by at least 20%.
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Additionally, the majority of subscribers expect platform prices to increase next year, particularly Netflix’s (64%). Among the major players, Apple TV+ stands out as the only streaming service that is dangerously close to falling out of the “consistency corridor” when it comes to measuring perceived value and price.
The fight against code sharing is bearing fruit: the example of Great Britain
According to the results of the NPA Conseil / Harris Interactive OTT Barometer, SVoD penetration has stalled, as in the UK, and is back at 52.9% at the end of the second quarter of 2023, more than two points lower than at the end of the first quarter . However, beneath this total, which actually aggregates paying subscribers and those using code sharing, lie two opposing trends. The former have been almost stable over three months and have increased significantly over a year; The latter are in a very significant decline. Especially at Netflix, which launched its campaign to combat code sharing on May 23rd. But also with other streamers, some of which – at least Disney – have announced a similar turnaround.
