, 2023-01-23 23:02:59,
Earnings season is officially underway, and Eunice Shin has her eye on the ability of streaming service owners to retain their subscribers.
“In a world where there are still economic uncertainties, where the quality of content is still hit-and-run, and a lot of bombs, how do we think about churn and how do these streaming platforms keep the customers they’ve worked so hard for? in an increasingly competitive world with competitive prices? Shin, a partner at the strategy consulting firm Prophet who has advised companies including Disney, Warner Bros. and NBCUniversal, said on the latest episode of the Digiday Podcast.
It’s a big question, made even more urgent considering the streaming market’s shift in emphasis from subscriber growth to profitability. Following the pandemic-induced surge in streaming subscribers, that growth began to slow in 2021 and further in 2022, to the point where Netflix actually lost subscribers. Then, with the economic downturn and the looming threat of a possible recession, investors turned their attention to how much money companies are spending, and often losing, on their streaming businesses, questioning whether streamers’ subscriber numbers justified their programming costs.
That’s why Shin is keeping an eye on streamers’ subscriber churn rates.
“If you think about all these streamers as they launched, most of them during the pandemic, as people have spent a lot of money to…
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