The expression “churning”, which has gained a different meaning thanks to digital platforms, just like “binge”, is used by users. constantly switching between services to reduce monthly subscription costs It is used to describe. When a content they want to watch arrives on platform A, the user subscribes to platform A, but it does not stay there permanently. If he doesn’t have anything else to watch soon, he cancels his subscription the next month and moves to platform B. He repeats this four or five times during the year, if necessary. In this case, that company has to work from the beginning to return it to platform A, which prevents companies from turning a profit. According to previously shared figures, digital platforms The cost of acquiring new users can reach $200 per user. This corresponds to almost a year’s subscription fee of that user. That’s why companies like Netflix need to retain these users somehow in order to make a profit.
However, as the number of digital platforms and subscription fees increase, this becomes more difficult to achieve. Deloitte Insights’ report on the subject shows that 40 percent of users in the USA Has canceled its subscription to at least one platform in the last six months It shows. We also need to consider that this rate may be higher in countries where economic opportunities are more limited. As a matter of fact, data shared by Forbes shows that while 164.7 million new subscriptions will be created in 2023, the number of subscription cancellations will increase to 140.5 million. In 2022, this figure was 104.3 million. On the other hand, data shared by Antenna shows that the rate of users returning to the platforms where they canceled their subscriptions within a month is only 10 percent. The rate of those who return within three months is 23%, those who return within nine months are 37%, and those who return within one year are 41 percent. In other words, platforms that lose subscribers generally They cannot win back the subscriber for months.
Quantity Is Now More Important Than Quality
For exactly these reasons, efforts to prevent churn are no longer possible today. has become the number one priority of digital platforms. This completely changes the nature of the content produced. Because in order to prevent churning, these platforms need to constantly put new content in front of their subscribers. This creates a new reality where quantity becomes more important than quality.
Netflix, Disney, Warner Bros. companies like Paying huge fees to license old popular TV series Actually, this is partly due to this. Despite dozens of new series released every month, the most watched productions on these platforms are often Friends, The Office ya da Suits There are old TV series like. Such long-running TV series play an important role in keeping users on the platform.
Netflix, which has become the first brand that comes to mind when it comes to digital platforms today, seems to have managed to distinguish itself from others in the eyes of users. Because users who churn The platform with the lowest cancellation rate is by far Netflix. Of course, the fact that Netflix’s production is much larger and more diverse than its competitors is also effective in this. about this the worst ones are Apple TV+ and Peacock.
Digital Platforms Come Together to Prevent Churn
Recently in the digital platform market Another popular trend is bundles.so there were package subscriptions. The platforms, which are normally direct competitors, realized it would be best to join forces to prevent churning and created bundles in which they bundled their platforms together. Comcast, one of the leading telecommunication companies in the USA, currently offers its users It offers a triple package consisting of Peacock, Netflix and Apple TV+. Likewise, Disney and Warner Bros. by signing an important cooperation They created a bundle that bundles Disney+, (HBO) Max, and Hulu together.
These packages, which are cheaper than subscribing to these platforms one by one, are both more attractive to new users and They get in the way of churning. Because even if the user cannot find anything to watch on one platform, he does not cancel his subscription because there is something he is watching at that time on the other platform in the package. Thus, all platforms included in that package benefit from this. Therefore, it is thought that these package subscriptions will have an important place in the digital platform market in the coming period. In fact, in the near future, we may start to see applications where multiple platforms are integrated to create a common interface and content library.
Source
https://www.forbes.com/sites/dbloom/2024/05/15/streaming-services-bundle-up-to-battle-rampant-churn/
https://deadline.com/2024/08/streaming-viewership-report-samba-churn-problem-1236044340/
https://www.forbes.com/sites/bradadgate/2024/04/01/reducing-svod-churn-should-be-the-next-priority-with-media-companies/
This news our mobile application Download using
You can read it whenever you want (even offline):
Source link: https://www.donanimhaber.com/dijital-platformlara-yon-veren-kavram-churning–185672