DALLAS—As pay TV operators continue to struggle with cord cutting and streaming platforms seeks to retain fickle consumers who regularly cancel subscriptions, a new study from Parks Associates takes a deep dive into consumer loyalty, engagement levels with various services and the factors that motivate them to either subscribe or drop a service.
Understanding those issues are particularly important for streaming services and programmers facing high marketing costs to attract consumers in an increasingly fragmented streaming landscape. A better understanding of their willingness to pay for multiple services and their long-term loyalty could boost profitability and reduce marketing costs, the researchers noted.
The new Parks survey found that 60% say the main reason for cancelling pay TV services is to save money and reduce monthly bills. In contrast, programming seems to pay a major role in decisions to start and retain streaming services. About one quarter (23%) of consumers reported cancelling streaming subscription services because they finished the show they were watching. Likewise, the top reason to subscribe, wanting a specific program/event, recently rose from 27% to 32%.
The survey also ranked the new promoter score of various streaming services. The score measures how likely subscribers are to recommend (or promote) a service to someone else on a scale of 1 to 100. By that measure, which provides a rough approximation of the value consumers see in a services, Netflix toped the survey, followed by Discovery+, HBO Max, Fox One and ESPN+. Peacock ranked last.
This research explores engagement trends in video services, measures the impact of exclusive content and original programming, and quantifies consumer demand for interactive and personalized experiences. This report provides the insights platforms need to balance content investment with sustainable business models and ensure long-term profitability.
More information is available here.
