More Americans are walking away from streaming services than ever before.
That’s according to The Wall Street Journal, which analyzed data from research firm Antenna that found that a quarter of U.S. subscribers have canceled at least three streaming services over the past two years. That’s bad news for services like Apple TV+, Discovery+, Disney+, Hulu, Max, Paramount+, Peacock, and Starz, which are already dealing with the hangover from overspending on content in a bid to attract more customers.
The data is a natural consequence of a glut of services that have emerged over the last few years, and the subsequent price hikes that have hit all of them. Consumers, already feeling the squeeze of rising prices for virtually everything, have gotten smarter about what subscriptions they actualy need, as well as alternative services that offer free, ad-supported programming like Pluto TV, Roku Channel, or Tubi.
The figure is also an acceleration from two years ago, when the percentage of subscribers who canceled that many services stood at 15%.
While prices likely aren’t going down anytime soon, streaming services are attempting to keep customers by introducing lower priced ad-supported tiers, or partnering with other services for bundled discounts, available through third parties like Verizon Wireless.
For cord cutters sticking around, the challenges facing streaming services are yielding some benefits. Once exclusive movies and shows are making their way to different platforms, such as HBO content showing up on Netflix, or the first season of Paramount+’s Halo airing on Amazon Prime Video.
The WSJ’s review of Antenna’s data also offers some hope for streamers looking to win back customers: A quarter of people who cancel a subscription typically resubscribes within four months, while a third go so within seven months.
Image credit: Paramount+