A Deloitte study found that while churn rates have remained consistent in the US since 2020, Gen Z and Millennials are more likely to opt-out.
In the US, overall churn rates have clocked in at 37% across all paid SVOD services since 2020. Over half of millennials (52%) and Gen Z (51%) have either cancelled or both added and cancelled an SVOD service within the last six months. In contrast, 40% of Gen X and only 17% of Boomers reported the same.
These younger generations are also more likely to cancel and then renew a paid SVOD subscription within the last 12 months. Apart from this, streaming companies face increased competition from other platforms like gaming, user-generated content and social media. 81% of social media users in the United States reported using the platforms daily.
Consumers use social media because they are free, but SVOD services are not always free. Nearly 30% choose to subscribe to an SVOD service because of low costs, and 19% because they prefer an ad-free viewing experience. With 41% of consumers saying they cancelled an SVOD as it was too expensive, it is clear cost plays a crucial role in driving higher churn rates.
[3 minute read]