Those who subscribe to a bundle of Disney Plus, Hulu and ESPN Plus are 59% less likely to churn out within 12 months of signing up vs. those who subscribe to just Disney Plus, according to new research released by London’s Ampere Analysis.
In a subscription streaming business that first exploded and now is beset by a core proposition that lets consumers sign up and quit instantly and for free, compelling evidence is all around these days that service bundling is a churn-buster.
And notably, streaming companies have acted on the data. Disney Plus, Hulu and Max will soon be bundled, for example, and Comcast is already offering Netflix, Peacock and Apple TV Plus at a 35% discount in its $15-a-month StreamSaver package.
As Ampere illustrates in this graphic, there is only limited usage overlap for these service groupings, suggesting plenty of “runway” for future signups.
Also, according to Ampere, 42% of U.S. streaming consumers polled said they agreed with this statement: “I often subscribe, cancel and resubscribe to video-on-demand services so that I only pay when there is something I want to watch.”
This “resubscriber” cohort tends to be younger viewers (18 to 44 years old), Ampere said, and is more likely to be in family households.
These folks tend to be heavier media consumers. “However, this wide media diet also means the cohort is 40% more likely than average to exhibit signs of subscription fatigue and 21% more likely to desire unified access to content across different services.”
