Streaming services like Disney+ and Netflix no longer have it so easy to convince customers. The competition among each other is getting tougher and new providers also want to get involved. If you still want to convince, you have to choose the right means. But not everyone succeeds.
Too expensive: Germans are the first to cancel this streaming service
Netflix is angering some customers with plans to run ads in the future. If you follow a different line of reasoning, this could be exactly the right step. Because there is another problem that is apparently much more difficult for streaming customers: the price.
If that is too high, many subscribers would pull the ripcord. This was the result of an investigation by management consultants Simon-Kucher & Partners. Accordingly are too high prices with 40 percent the main reason of customers in Germany to cancel an existing streaming subscription.
It also looks correspondingly bad for the expensive providers: DAZN has the most subscribers willing to cancel. Almost half (45 percent) could end their subscription. The sports streaming service had massively increased the prices at the beginning of the year, which will also apply to existing customers from the end of July. The risk of churn is also high at WOW (25 percent) – formerly Sky Ticket – and Joyn (24 percent).
But it shouldn’t be an easy time for the other streaming services either: According to the survey 24 percent of customers cancel at least one streaming subscription. Between April and May 2022, 1,026 streaming customers in Germany were surveyed for the survey, and 10,500 worldwide (source: Simon-Kucher & Partners).
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Good for Netflix and Disney+: Customers put up with advertising
The thing also has a good thing for streaming services: Because a large majority of Netflix customers see no reason in advertising get rid of their Netflix subscription. For the provider, this is a sign that the strategy shift towards the advertising model is likely to work despite all the criticism.
But there are also opposing voices: Another study found that 66 percent would not accept advertising on the streaming service of their choice – even if they had to pay less.