Lack of content exceeds household budget to drive SVOD attrition

0

About a third of former subscribers to Netflix Inc., Walt Disney Co.it’s Hulu, Amazon.com Inc.from Prime Video, AT&T Inc.HBO Max and Disney+ said they dropped their subscriptions due to a lack of content. Aside from content, according to data from Kagan’s US Online Consumer Survey conducted in September, the most chosen reason for the decline was reduced household spending (budget), except among former Disney+ subscribers where this reason came third. Instead, former Disney+ users were slightly more likely to say they gave up because they just wanted to try the service, at 23%, which was also a top reason among former Prime Video (24%), Hulu (22%) and HBO Max (19%) users.

* Among the types of content missing for respondents to Kagan’s September online consumer survey, new movies were the most selected among former Netflix, HBO Max and Disney+ subscribers, new TV content was on top for Hulu and original/exclusive content was first for Prime Video.
* The time elapsed since the abandonment of a service seems to have an impact on the reasons given for the abandonment in the different services.

SNL picture

Many former subscribers also cited price increases as the reason for the drop. Netflix (29%) increased prices for all plans offered in 2019, and again in 2020 for Standard and Premium plans, with another increase in January 2022 after this survey was completed. Hulu actually lowered the price of its ad-supported plan from $7.99/month to $5.99/month in 2019. However, the 19% of former subscribers surveyed who chose this reason for the drop can do reference to price increases for Hulu + Live TV. Hulu experienced a price increase in October, also after this survey was conducted.

Prime Video’s standalone subscription price hasn’t changed since it launched in 2016, and Amazon Prime’s broader plan hasn’t increased since 2018, but 18% of former users still cited an increase of prices as the reason for their decline. HBO Max kept the same price as HBO NOW ($14.99/month), but 20% of former subscribers listed a price increase as the reason for their drop, which could be related to those who received the service as a subscribed to another service such as certain AT&T wireless plans. Disney+’s monthly subscription cost dropped from $6.99/month to $7.99/month in March 2021, which was chosen by 17% of former subscribers surveyed as the reason for their downfall.

SNL picture

When it comes to the specific types of content missing on each service, new movies (released within the last two years) was the category most often cited as a reason for leaving a service, especially among older subscribers. to Netflix, HBO Max, and Disney+ at 15%, 14%, and 13%, respectively. Those who chose this reason among former HBO Max and Disney+ subscribers might have given up before theatrical releases were simultaneously available on the service. Former Hulu subscribers were slightly more likely to select new TV content at 12%, while former Prime Video subscribers were just as likely to select not enough original/exclusive content at 12%.

SNL picture

Those who recently dropped Netflix (within the past year) were significantly more likely to say they dropped for a short time and planned to subscribe again 17%, compared to those who dropped it some time ago (over a year ago) only 3%. Those who recently dropped out were also much more likely to indicate that they dropped out because they only subscribe 13% for new seasons of content, compared to just 1% of those who dropped out ago. some time. Additionally, those who recently dropped out were slightly more likely to indicate that they dropped out because they had too many subscriptions at 18%, compared to 11% of those who dropped out some time ago.

Those who left Netflix some time ago were more than twice as likely to say they dropped due to a 36% price increase, compared to those who recently dropped (15%). which makes sense given Netflix’s price increases in 2019 and 2020. Only wanting to try the service was also slightly more common among those who gave up a while ago at 16%, compared to 10% of those who recently discontinued, most likely impacted by Netflix’s US free trial shutdown in October 2020.

SNL Picture

Subscribers who dropped Hulu a while ago were slightly more likely to say the reason was due to a lack of content at 32%, compared to those who dropped recently at 28%. Specifically, they were more likely than recent dropouts to say there wasn’t enough new TV content (14%), new movies (13%), or original/exclusive content (10%). Those who gave up some time ago were also more likely to say they needed to cut household expenses by 30%, only wanted to try it by 26%, or use other services instead at 20%, compared to those who recently dropped Hulu at 27. %, 16% and 15%, respectively.

Those who recently dropped out were more likely to say they had dropped out for a short time and plan to subscribe again compared to those who dropped out some time ago, at 12% and 5%, respectively , or to subscribe only for the new seasons at 10% and 5%. , respectively. Price increases and too many video subscriptions were also popular picks, regardless of when respondents left the service.

SNL picture

Of those who dropped out of Prime Video, cutting household expenses and only wanting to try out were selected slightly more among those who dropped out some time ago than those who dropped out recently. Similarly, those who quit some time ago were 20% more likely to say they use other services instead, compared to 14% of those who recently quit. Those who recently dropped out were more likely to say there wasn’t enough new TV content on the service at 13%, compared to 9% of those who dropped out some time ago.

SNL Picture

In addition to not having enough content that respondents wanted, reducing household expenses was a commonly chosen reason for dropping out of HBO Max, both among those who recently dropped out and those who dropped out a while ago. Price increases were another commonly chosen reason for the drop, although HBO Max is keeping the same price as HBO NOW.

Too many video subscriptions were the most-chosen reason among those who recently dropped HBO Max to 25%, far more than those who dropped to 7% a while ago. Those who recently dropped out were also more likely to say they did so because of a bad streaming experience at 12% or dropped for a short time at 14%, compared to those who dropped there. some time ago at 4% and 7%, respectively.

SNL picture

Users who dropped out of Disney+ some time ago were 34% more likely to indicate a lack of content than those who recently dropped out at 28%. The second most chosen reason for recent dropouts was only wanting to try it at 25% compared to 19% of those who dropped out more than a year ago, while the second most common reason for dropping out ago some time was “having to reduce household expenses” to 27%. Those who recently dropped out were more likely to say their decision was due to a price increase at 19% or a lack of new TV content at 13% compared to those who dropped out a while ago at 13 % and 7%, respectively. Those who dropped out a while ago were also more likely to say they dropped out due to too many video subscriptions and a lack of new movies, compared to those who dropped out recently.

SNL Picture

The data presented in this article comes from Kagan’s US Consumer Insights Survey conducted in September 2021. The online survey included 2,529 US Internet adults matched by US Census age and sex. The survey results have a margin of error of +/-1.9 ppt at the 95% confidence level. Percentages are rounded to the nearest whole number.

Consumer Insights is a regular feature of Kagan, a media research group within S&P Global Market Intelligence’s TMT offering, providing exclusive research and commentary.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.

Share.

Comments are closed.