New data from London-based Ampere Analysis has found that 42% of SVOD consumers in the US have churned out of a service and then returned to it.
These resubscribers tend to be younger (18 to 44), and are more likely to reside in family households. They typically consume a lot of media, subscribing to multiple SVOD services at the same time, and this often leads to a feeling of subscription fatigue that drives the behavior of canceling services until there’s something new they want to watch.
But 21% of resubscribers are more likely than average SVOD consumers to want an aggregated streaming bundle, and Disney+ is a case study that proves this out. Subscribers who signed up in Q1 2023 were 59% less likely to churn out of a Disney+/Hulu/ESPN+ streaming bundle than those who just subscribed to Disney+. According to Ampere, this clearly indicates that offering bundles is an effective strategy for keeping subscribers engaged and preventing them from feeling multiple-service burnout.
Ampere also points out that only 15% of Disney+, Hulu and Max subscribers currently have all three services in their households (and it’s just 10% for Comcast’s mobile, broadband and TV subscribers to Peacock, Netflix and Apple). So there’s a lot of room for offering a bundling option that adds value to what SVOD consumers are getting right now. And this retention strategy is poised to be an increasingly important growth opportunity as the crowded market makes it harder and harder to find new subscribers.