Bundled Streaming Subscriptions See Almost Half The Churn Of Standalone Services - Mediavision

Streaming subscriptions included in bundles are cancelled far less frequently than standalone services, despite lower customer satisfaction, according to new research from Mediavision.

The company's latest analysis of the Swedish TV and streaming market found that 14 per cent of bundled subscriptions were cancelled over the past year, compared with 25 per cent of standalone subscriptions.

However, standalone services recorded higher satisfaction levels. On a seven-point scale, 63 per cent of standalone subscriptions received a rating of six or seven, compared with 50 per cent of bundled subscriptions.

"One possible explanation is that households assess the bundle as a whole rather than each streaming service individually. A service may therefore remain in the bundle even if the household is not particularly satisfied with that service," said Adrian Grande, Principal Analyst at Mediavision.

The analysis also highlights the role of reactivation in the streaming market. A total of 3.4 million streaming subscriptions were cancelled over the past year, with one in four subsequently reactivated.

Content was cited as one of the reasons for returning for just over half of reactivated subscriptions. Specific films and series were mentioned about as frequently as offers or discounts.

"A particular film or series, or access to specific sports rights, can prompt households to take out a streaming subscription. The challenge is retaining customers once the series ends or the sports season is over. At that point, bundling may play a greater role than satisfaction with the individual service," said Adrian Grande.

The findings suggest that while compelling content can encourage viewers to subscribe or return to a service, bundles may help keep subscriptions active even when satisfaction with an individual streaming platform is lower.