Streaming TV-media businesses continue to lead the way in the broader world of exponentially growing consumer subscription services -- food, fitness, delivery, other consumer products. That's partly due to the ease of signups and sign-outs.
A new survey says 98% of U.S. consumers now subscribe to at least one streaming media service -- 75% subscribe to two or more services, according to Brightback, a consumer retention software company.
After premium streaming services come mobile app subscriptions, at 53%; followed by news subscriptions, at 39%; curated box subscriptions, 37%; health/fitness, 34%; and food subscriptions, 31%.
“Technology-first subscriptions are still outpacing physical goods by a significant margin,” write the authors of the report. In 2020, there was a sharp rise in subscriptions, due to the pandemic.
Some 80% of those surveyed were more likely to purchase a new subscription that allows them to cancel online, according to the research. The best results of any company are with Netflix, a premium streaming media company, with 23% saying the company offers the best “cancellation experience.”
However, at the same time, high-profile streaming media also has some of the poorest results among all types of consumer subscription businesses: Hulu (4.7%), Netflix (2.7), Comcast (2.2%) and AT&T (2.0%). After this group of four comes Amazon, Spectrum, Verizon and Planet Fitness.
How are the differentials explained?
The authors of the study said results suggest “that people find great experiences more memorable and impactful
than poor ones.”
They cited a report from Gartner that noted by 2023, 75% of organizations selling directly to consumers will offer subscription services, but only 20% will succeed in increasing customer retention.
The Brightback-commissioned survey of 1,088 U.S.-based online subscribers was conducted between December 21, 2020 and December 28, 2020.