Americans are canceling more streaming plans as prices go up
like The golden age of streaming Subscribers seem to have reached their limit, and have canceled more of their plans to combat rising costs.
According to new data from consumer measurement platform Antenna released on Tuesday, the rate of U.S. subscriber declines — or the act of paying users who abandon their streaming plans — increased last month compared to the same period last year.
Across all streaming platforms, the decline in July was 6%, which is higher than the 4.7% seen in the same month a year ago. Turbulence rose on every major streaming service except for one: Netflix (NFLX).
Antenna data showed downtime rates fell slightly to 3% from 3.1% for Netflix despite the company’s controversial show. Password sharing campaign.
Others weren’t so lucky. Apple TV+ (AAPL) and witnessed its rate of deceleration jumping to 6.4% last month, compared to 5.5% in July 2022.disDrop rate increased to 4.6% compared to 4.0% in the same period last year while Hulu, Max, and Peacock drop rates increased by 0.8%, 1.1%, and 1.5%, respectively.
Overall, Lionsgate’s Starz had the highest monthly decline in July compared to other major streaming platforms at 11.9%, followed by Peacock at 8.7% and Paramount+ at 7.4%.
Antenna determines the monthly rate of change for the service by dividing the cancellations in a given month by the subscribers at the end of the previous month.
“The disruption is significant,” Bank of America analyst Jessica Reeve-Ehrlich told Yahoo Finance. “It’s really one of the biggest issues – having to replace subscribers, marketing costs. It’s just the untold story.”
In order to reduce disruption, Rev Ehrlich said, companies should focus on three key areas: original content, increased engagement, and a wide variety of content. She described live sports and news as potential content triggers when it comes to engagement.
“The more time subscribers spend, the less likely they are to stop,” said Rev Ehrlich.
Antenna Report comes with price inflation across all major streaming services.
Disney has become the latest service to raise prices, announcing earlier this month that it would do so Increase the monthly price From the ad-free Disney+ and Hulu plans by more than 20% to $13.99 and $17.99, respectively.
The price jumps echo competitors, with Netflix, Apple TV+ and Max all raising prices over the past year.
Plus, the cost of these services now rivals the dreaded cable TV package of years past — the same thing that broadcasting is starting to give way to.
Subscribers to major direct-to-consumer (DTC) services including Peacock, Disney+, Hulu, ESPN+, Paramount+, Max and Discovery+ fell by about 500,000 combined after the latest earnings season.
“Global DTC subscriber growth was 8.5% year-over-year, slowing to single digits for the first time,” Macquarie analyst Tim Nolen wrote in a recent note to clients.
Despite the general slowdown, growth has been supported Through the Netflix password sharing campaignThis helped the broadcaster add 5.9 million subscribers in the second quarter. Wider crackdowns on password sharing are likely to become the norm as media giants weigh profitability more than subscriber count.
Disney said it would be implement its own crackdown Sometime in the year 2024.