Perspectives
Brands already know that great content and value are key to fighting streaming subscription churn, but our data-driven research reveals the additional drivers for quitting they should be addressing
Streaming services are sitting on a ticking timebomb. Subscriber numbers may look good now as consumers accumulate streaming services by signing up for a ‘must-see’ show or accepting free introductory trials. Under the surface, though, there is a growing problem as streaming churn is accelerating. Not only are the costs starting to mount, but many consumers also feel they have too much going on in their lives to get the full value from multiple subscriptions.
Recent Hall & Partners research reveals that 30% of US and 28% of UK consumers are more likely to cancel a subscription in the next six months than in the past. This may sound alarming; however, it’s only half the story. We also found consumers in both markets are twice as likely to cancel a subscription in the next six month as they are to open a new one.
Research from Deloitte confirms this growing dilemma. The average person now has four streaming subscriptions which will cost 13% more to keep active this year, compared to last. They don’t have enough time to get the most from each account and so they’re starting to determine which they can live without, its researchers conclude.
More than ever, then, streaming services need to understand why customers are about to cull subscriptions so they can devise a customer-retention strategy to remain valued. The message from our research is that consumer concern extends beyond the obvious areas of content and price.
There’s a ticking time bomb that is about to go off and the smartest brands will ensure they are ready by rewarding loyalty and being relevant to their customers both on screen, and off.
Farid Jeeawody, Partner, Hall & Partners
New research shows brands must evolve their streaming retention strategies to future-proof customer relationships
We have uncovered five additional areas of customer sentiment which streaming brands can address to deepen brand connection and loyalty.
1. Deliver personalised experience and recommendations
Customer lives are now fuelled by personalised experiences, from news sites that prioritise the latest updates for their favourite sports team to transport apps that anticipate problems on the commute home.
Our research highlights the importance of personalisation in streaming experiences. Nearly a third of US consumers, and nearly a fifth (17%) in the UK, say better personalised recommendations would make a streaming subscription more worthwhile.
That is why Netflix is using AI to deliver data-driven, personalised recommendations that account for 80% of all viewing on the platform. It’s vital to get it right because Netflix research shows customers lose interest after 60 to 90 seconds of searching. It concludes the platform must deliver an apt recommendation within that time frame or raise the risk of somebody leaving the platform.
Netlfix and other streaming brands need to continuously test and evolve their recommendation algorithms to ensure they are delivering the most relevant, and appealing, recommendations to engage viewers.
Broader opportunities in personalisation may also exist. For example, how can streaming brands navigate recommendations for families and friends that share the same household and streaming services? Brands which find ways to deliver personalised recommendations which work for both individual and group viewing may thrive.
2. Be transparent on pricing to gain consumer trust
Welcome offers attract new customers but, once they are over, subscribers not only find themselves paying full price, they’re also being asked to accept annual price increases.
Unexplained changes to the monthly fee structure are deeply unpopular with subscribers. We found more than one in three (35%) US and nearly one in four (24%) consumers who have streaming subscriptions want to see more transparency on pricing and renewal terms. Further, more than a quarter want brands to make it easier to cancel their subscription.
Sky has been tackling this issue by being upfront about which packages are going to cost more, and why. The reason given for its 2025 increase was the need to keep funding top quality entertainment. This was backed up by reference to the five Bafta awards its programmes won in 2024 as well as reminding customers that it has received the fewest Ofcom complaints of any British pay-TV provider for more than a decade.
3. Reward customer loyalty in innovative ways
A major finding from our customer research is that 49% of US and 42% UK streamers want to see their long-term loyalty rewarded. To make them feel a subscription is more worthwhile, they want streaming brands to allow them to share an account with family and friends as well as offer bundle options.
Sky offers a good example of bundling, by including access to streaming apps from its Q set top boxes, which extends to a cut-price offer on Netflix Premium and free access to an ad-supported Paramount account for Sky Cinema customers. Amazon similarly bundles its TV streaming service with its Prime shopping experience offering next day delivery.
Apple also uses bundling and sharing to help deepen loyalty among its customers. Its Apple One plans offers access to a range of apps, including Apple TV, News, Fitness and Music. Its Family upgrade allows a group of five people to share the same access across these apps with no need to live under the same roof.
One possibility streamers may wish to pursue is rewarding loyalty with the improved access consumers are calling out for - such as inclusive family sharing or upgrades to a premium, perhaps ad-free, version of their service. Our research indicates that rewarding loyalty by allowing users to ditch advertising is worth considering with more than a quarter of UK, and more than a third of US consumers, saying “too many ads” are pushing them to consider churning.
4. Explore partnerships to create new experience-led brand strategies
Content is always king and so it’s no surprise that more than one in five consumers will be looking to move on to another service because of better content that’s available elsewhere. However, there is a larger proportion of customers who are considering leaving because they don’t have the time to get the value from a subscription, or they’re too busy pursuing other interests.
A significant finding from our research was 26% of UK and 32% of US consumers say they don’t have the time to get their money’s worth from a subscription. That means streaming brands are in direct competition with more than just each other’s services. They are fighting for attention for time; against leisure pursuits as gaming, sports viewing (and playing), social media, browsing the internet and evenings out with family and friends.
To remain competitive then, streaming brands can explore experience-led brand strategies that offer new ways to engage with audiences beyond the screen. Streaming services are not well known for this. Sky stands out for its VIP membership scheme which taps into customers’ leisure pursuits. It includes access to lounges at popular music arenas, free cinema tickets and regular discounts on shopping with a wide variety of brands. The key takeaway here is that these partnerships have to be highly relevant and provide extra value. They need to be the right fit for the streaming brand as well as its customers to ensure consumers experiences are elevated, thus deepening brand connection and loyalty.
5. Digging deeper into consumer behaviors for insights
There is no escaping the fact that content and price are key to any streamer, but to concentrate on those two areas alone would ignore hugely important customer sentiments.
Our research shows people want a service that is more personalised around their needs. That desire goes deeper than the monthly price and whether they’re gripped by the next bingeworthy series.
Streaming brands need to look at ways to be more flexible and transparent on pricing, but they also need to devise new customer-retention strategies that demonstrate their value in order to encourage and reward loyalty. They should also consider developing new ways to engage with customers beyond the screen; increasing their ‘share of time’ by becoming a key part of their lives and cutting out the time-consuming factors that make consumers want to quit their streaming subscriptions.
There’s a ticking timebomb that is about to go off and the smartest brands will ensure they are ready by rewarding loyalty and being relevant to their customers both on screen, and off.
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