Why entertainment expert Eunice Shin is watching streamers’ subscriber churn rates

Earnings season is officially underway, and Yunus Shin is looking forward to streaming service owners’ abilities to retain their customers.

“In a world where economic uncertainty still exists, where the quality of content continues to be hit-based and often bomb, how do we think about engagement and how do these streaming platforms keep the customers they want to get? has worked very hard. In an increasingly competitive and price-competitive world?” said Shane, a partner at strategy consulting firm Prophet who has consulted for companies including Disney, Warner Bros. and NBCUniversal, on a recent episode of the Digid podcast.

That’s a big question, made all the more urgent given the streaming market’s shift from subscriber growth to profitability. After the increase in streaming subscribers induced by the pandemic, this growth began to slow in 2021 and further in 2022, to the point that Netflix actually lost subscribers. Then, with economic stagnation and the threat of a potential recession, investors turned their attention to how much money companies were spending — and often, losing — in their streaming businesses, asking whether the The number of streamer subscribers justifies the costs of their program.

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That’s why Shin monitors the prices of streamers’ customers.

“If you think about all of these streamers as they started — a lot of them during the pandemic — because people spent a lot of money to get those subscribers, that means not just marketing dollars but Content Dollars in Content Investment. Attract people to these platforms, how do they keep them…. The more you think about customer growth, the higher your churn number is, that’s a step. Forward is like two steps back.

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Here are a few highlights of the conversation, which have been edited for length and clarity.

Fighting chickens

This whole time giving you a sense of volume has been Netflix’s strategy. Once you watch “Emily in Paris,” it’s important to know what’s next and what happens to you, “Am I going to come back tomorrow or am I going to feel like I don’t need this streaming platform this month?” ?

Ideal planting rate

Everyone always tries to get it below 5%. This is the ideal situation.

The return cycle of streaming

We are once again rushing into the world of gathering. Everything that we’ve already seen in the cable world, I think we’re going to find ourselves in the streaming world where it’s going to be, “How do we show consumers the incremental value of signing up for something more expensive but that . You get more?”

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A free, ad-supported streaming TV alternative? Not too fast

I don’t know if this is a very strong dagger throw, but I think so [free, ad-supported streaming TV] Services only resonate with a certain generation in our population. If you look at the behaviors of Gen Z, none of them change Pluto [TV] Look for old reruns of “Gilligan’s Island” or whatever it may be. Such content is not duplicated.


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