Sign up to receive 5 free days of our daily summary for tech news.

Subscribe today for just $10/month for your first 3 months to access daily conference calls during the week of the Uber IPO. 

Read this article for free.

Already a subscriber? Log in here

Media Entertainment

Big Challenge for Disney and Apple Video Services: Churn

One of the key metrics behind successful subscription services is also one of the most secret numbers: the cancellation rate. New data reveals that number can be as high as 23% a month, a vivid illustration of the challenges for companies planning to offer new video services, which range from Disney to Apple to AT&T’s WarnerMedia.

Overall, subscription on-demand video streaming services lose between 7% and 23.4% of their subscriber revenue every month because of people canceling, according to data from ProfitWell, a software firm that works with a wide range of subscription services. The median percentage of this so-called “churn rate” is 8.9%. In comparison, in the news media, the median rate is 5.7% (see above chart).

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Venture Capital Startups Entertainment

Scopely Sees Growth With Mobile Games That Live On

By Beejoli Shah

Media Entertainment

CBS Made Informal Offer to Acquire Starz

By Jessica Toonkel

Google Apple Semiconductors

Former Apple Chip Engineers Leave Google

By Aaron Tilley

Entertainment

Rising Fees, Falling Audiences Highlight Pay TV Dilemma

By Jessica Toonkel