Four of the biggest SVOD platforms in the US lost over US$80 million in one month as a result of churn.
According to a new report from Wurl Analytics, HBO Max lost US$33.1M, Netflix lost US$17.3M, Hulu lost US$15.1M and Disney+ lost US$14.7M in the month of April 2021. Disney+, HBO Max and ViacomCBS experienced monthly churn rates ranging from 2% to 7%.
During that period, the streamers collectively spent nearly US$50 million in media with US$20 million of that attributable to reducing churn.
The report goes on to estimate that between 2021-24, Disney+ will churn 333.1 million subscribers. This will mean that it will be required to attract 472.5 million subscribers in order to reach its stated growth target of 230-260 million global subscribers by the end of 2024.
While Disney is set to be the most impacted by churn in the long run, other players will also be impacted. HBO Max will need to acquire 302.6 million new subscribers if it is to meet its goal of 150 million subscribers after churn, while ViacomCBS needs 210.4 million additions to reach its goal of 150 million subscribers by 2025.
Sean Doherty Jr., Head of Wurl Analytics, said: “Churn is not a new problem in the video business, of course, but with the advent of streaming services, subscriber churn has escalated and accelerated due to the fact that it is much easier to cancel a streaming subscription than it is to cancel a conventional cable subscription.
“With this report, we are providing a snapshot of the actual financial impact churn is having on streamers. It is the first of several reports Wurl Analytics will publish each year aimed at providing the streaming TV business with valuable data insights to help inform better business and marketing decisions.”