Streaming Services With Biggest Customer Bases Have Lowest Churn

Customer churn is a big concern for any supplier of a consumer application or service, and it generally is recognized that much churn happens in the early days of any engagement with a new customer. Conversely, churn tends to be quite a bit lower for accounts with some longevity.

That is fairly easy to explain. New customers without prior experience with any given service or service provider, appliance or app have a learning curve to climb before most of the value of the product is grasped. For many software as a service products, most of the churn happens in the first 90 days.

source: Cohorts  

So it is probably not surprising that U.S. customers of streaming video services seem to churn least on services that have the longest tenure and the greatest number of accounts.

Basically, most of those customers have had time to decide whether they value the services enough to keep paying for them, have concluded that the value-price relationship is satisfactory and have learned how to navigate the services.

Many of the newer or smaller services arguably have a higher percentage of brand-new users, with the obvious risk of higher abandonment early in the relationship.

source: Juniper Research