Data Point
Media/Telecom 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).

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
Data Point Media/Telecom Entertainment
Disney and Netflix Lag Behind European Quotas for Local TV Shows, Movies
Chart by Mike Sullivan
Europeans who watch streaming services from Netflix, Walt Disney, Amazon and others have shown an almost insatiable appetite for Hollywood television and movies. But those streaming providers are facing new regulations that will force them to significantly increase the amount of homegrown European content on their services in the region. The new regulations—passed by the European...
Latest Briefs
U.K. Regulator Targets Fake Reviews On Amazon and Google
China’s Didi Chuxing Plans to Raise Up to $4 Billion in U.S. IPO
AWS Veteran Exec Rudy Valdez Departs
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Photo: Bloomberg
Exclusive Media/Telecom E-commerce
Shopify Seeks to Challenge Amazon Through Deals With BuzzFeed, Other Sites
Shopify, which has become a major force in e-commerce by providing online tools to merchants, is rolling out a new service that will allow content publishers to link to merchants in the Shopify network in exchange for a cut of transaction revenue, according to people familiar with the situation.
Unity Software CEO John Riccitiello. Photo by Bloomberg
The Big Interview Facebook Apple
Unity CEO Predicts AR-VR Headsets Will Be as Common as Game Consoles by 2030
By his own admission, John Riccitiello has a long history of making predictions—some of them right, others not.
Apps on a Vizio television set, including for YouTube and YouTube TV. Photo from Vizio
Exclusive Media/Telecom Google
YouTube’s Audience on TVs Soars, But TV Advertisers Go Slow
Viewers of YouTube, who have long watched the popular video service on their phones and computers, are now increasingly watching it on television sets, according to new data shared with The Information.
By Visual Generation
Tech Companies Discover Hidden Costs of Remote Work
Last August, executives at Happy Money, a financial services startup, told staff the company would go fully remote after noticing remote workers were more productive and focused during work hours.
Photos by Bloomberg. Photo illustration by Mike Sullivan.
Exclusive Asia Amazon
Amazon Says Its Suppliers Must Protect Whistleblowers. This One’s in Jail
Amazon says it expects its manufacturers to protect whistleblowers, but that wasn’t enough to help a manager who raised alarms about labor violations involving teenage workers at a Chinese factory that made Kindles and Echos.
Amazon's hair salon in London. Photo by Mark Di Stefano
What It’s Like Getting a Haircut at an Amazon Salon
For a long time, Amazon CEO Jeff Bezos has been saying the company has a simple criterion for opening new categories of physical retail stores: Can it significantly improve on the traditional store experience?