Clemenger Media Sales, CMS, Clemenger Consulting, Clemenger is advertising, marketing, media buying, media buying agency: if you want to buy media, advertising, if you want to buy radio advertising, buy magazine advertising, do you want to buy digital media, are you buying TV advertising, or want content marketing, media sponsorship – Clemenger can help you. We give you the above / this news to help you learn / live / continually improve (call or email if you need help with your media / advertising / marketing investment (we are Australia’s home to niche media :
Streaming services will retain subscribers even after the pandemic
The media ecosystem is constantly evolving to embrace new forms of content, platforms, distribution, and technology. Social platforms, user-generated content, and streaming services all play a part in transforming the consumer relationship.
As a result, digital publishers increasingly look to a direct to consumer (DTC) business models as a go-to strategy for content distribution. For online consumers, access to a streaming video service is a daily connection point. According to Brightback’s third annual State of Industry Report, 98% of online consumers subscribe to streaming media. In fact, the majority (75%) of this audience subscribes to two or more services.
Subscription adoption
The pandemic is a key influencer in consumer adoption of streaming subscriptions. More than one-third (36%) of consumers state their subscriptions started with the onset of Covid-19. Significantly, 86% of subscribers say they plan to maintain their streaming services even after the pandemic. While many direct to consumer (DTC) subscription services registered increases compared to last year, technology-first subscriptions outpace physical goods subscriptions.
Managing cancellations
Online consumers want a seamless process from sign-up to cancellation. Some state regulators (i.e., California and New York) require digital subscription vendors with an online registration process to offer customers an online cancel option. And most consumers (60%) also favor an online cancellation option.
Interestingly, almost one-third (32%) of this audience changed their mind about canceling a service after being offered an incentive. Of those who did not cancel their service(s), the incentives included:
- 49% discount;
- 28% account credit;
- 26% pause plan;
- 25% downgrade;
- 22% skip payments;
- 21% switch product or plan; and
- 20% partner offering or bundling.
It turns out that cancellation is a big part of the consumer satisfaction equation. In terms of providing the best cancellation experience, Netflix ranks highest at 23%. Amazon Prime places second with 10% of participants’ vote.
Streaming subscription services offer a strong DTC distribution channel for digital content companies. They also offer new consumer engagement opportunities. And, according to Gartner, by 2023, three-quarters of DTC businesses will offer a subscription service but only 20% will succeed in customer retention. Growth is critical, but a positive overall experience — even cancellation — factor into keeping the customer satisfied and keeping the customer in the long term.
Streaming services will retain subscribers even after the pandemic
