Entertainment Marketing Summit
At Deloitte, Jana Arbanas serves as the U.S. telecom, media and entertainment sector leader, where she helps produce the Digital Media Trends survey, looking at how consumer habits have changed each
At Deloitte, Jana Arbanas serves as the U.S. telecom, media and entertainment sector leader, where she helps produce the Digital Media Trends survey, looking at how consumer habits have changed each year. While discussing the latest survey, Arbanas revealed that around 37% of subscribers of streaming services cancel their subscription for any number of reasons each year — a figure that has remained consistent for two years.
“I think we were wondering if that was a pandemic-related issue, I think it’s going to hold steady,” Arbanas said at the Variety Entertainment Marketing Summit presented by Deloitte. “Churn is absolutely here to stay.”
Arbanas spoke with Andrew Wallenstein, the president and chief media analyst of Variety Intelligence Platform, for a keynote conversation titled “Can SVOD Keep Up With the Next Generation of Media?” The two discussed the future of subscription video-on-demand services, with an emphasis on the phenomenon of “churn and return.”
According to Arbanas, “churn and return” is the process in which a streaming service subscriber cancels their subscription after watching a specific season of a show and re-subscribes when the next season comes out. Arbanas attributed the popularity of the practice to several factors, including differences in how millennials and Generation Z consumes content, competition with content on social media and lack of incentive for users to maintain their subscription between shows they watch.
“Consumers want more options … streaming companies need to really think how to keep and maintain that relationship with the consumer in between shows. Options play into that, in terms of low-cost options or high-cost options,” Arbanas said. “There’s no silver bullet relative to churn, and options become really important.”
The Variety Entertainment Marketing conference was held in Los Angeles on May 24. Watch the full conversation below.