Churn vs. Engagement in Paid Video Streaming, Disney Looking to Boost Streaming Engagement, Implications for Apple TV+
We begin with a closer look at some churn vs. engagement data for paid video streaming. The discussion then turns to Disney looking to boost engagement within its streaming properties. We conclude with a look at some implications regarding engagement and Apple TV+.
Hello everyone. Today's update will take us to the paid video streaming industry. Let's jump in.
Churn vs. Engagement in Paid Video Streaming
In his Screentime newsletter, here’s Bloomberg's Lucas Shaw:
“There is a direct link between how much time people spend watching your [paid video streaming] service and how likely they are to keep paying, according to the research firm Owl & Co. (It got some help from our friends at Antenna.)
Those dots on the bottom right of this chart represent Netflix data for different quarters. People spend a lot of time watching every month and don’t cancel.
Every other service is up and to the left, meaning they generate a lot less viewership and have far higher rates of cancellation.
This may seem obvious, but it’s a key point. Many companies in Hollywood are cutting back on spending right now. If you cut spending, that means you offer customers less to watch, which means they will spend less time on your service.
The industry has spent many years criticizing Netflix for making too much. But by offering new series every week, Netflix ensures that customers always feel like there is something to watch.”
The theory that Lucas ends up supporting is that Netflix is winning by focusing on video quantity over quality as there is more content available to watch (which Owl & Co. says results in greater engagement and less churn). Going a bit further, Netflix apparently
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