Now that most media conglomerates have launched an in-house streaming service, the battle is turning to subscriptions. The challenge is not only to convince consumers to sign up but also to keep them onboard even after the teaser introductory offer has expired or they have watched a flashy title that convinced them to give it a try.
To minimize the “churn”, providers must deliver a continuous flow of binge-worthy series and must-see features. But they may also have to compete on price since most consumers have a ceiling in their budget for at-home entertainment. 46% of respondents to a Deloitte survey of 1,100 consumers last October reported that they had canceled at least one streaming service in the prior six months. And as more services launch, more signups and cancellations are taking place. Analysts are also predicting that advertising-supported, free-to-the-consumer networks such as Tubi, Pluto, and Roku will emerge as powerhouses in at-home entertainment.