Image: NurPhoto / Contributor (Getty Images)
In This Story
A notable trend is emerging among subscribers of popular video streaming platforms like Netflix (NFLX+0.68%) and Hulu (DIS+1.15%), with an increasing number opting to pause their subscriptions rather than cancel completely. This trend was highlighted in insights published by Antenna, a leading streaming analytics firm.
How Nvidia’s H200 GPUs and Blackwell chips are revolutionizing data centers
As subscription costs continue to rise across the board, users are adapting their viewing habits to manage expenses.
In the words of Antenna co-founder and president Rameez Tase, “We know entertainment streaming services are cyclical: whether for a hit title or live sports, users often sign-up for the season, cancel during the offseason, and resubscribe at the start of the next season.” Tase elaborated on this evolving consumer behavior in a newsletter issued on November 10.
However, the impact of these trends varies significantly among different streaming services available in the market. Newer platforms with a strong focus on sports, such as Paramount+ (PARA+3.30%), along with those emphasizing high-budget television series like Max (WBD+1.42%), are witnessing a surge in users who frequently subscribe and unsubscribe based on specific content offerings. This indicates that their subscriber numbers are closely linked to particular shows or sporting events, drawing in viewers in cycles.
Conversely, well-established streaming giants like Netflix and Disney+, known for their extensive media libraries and iconic content, boast a greater proportion of loyal subscribers who have never opted to pause their accounts.
Tase offered valuable advice for streaming services, recommending the development of strategic approaches that leverage these observable patterns. “If you know which groups of users will return, and for what reason, you should be able to generate that resubscribe with ~0 additional marketing cost, maybe just with a simple email, text, or phone call,” he advised.
**Interview with Rameez Tase, Co-Founder and President of Antenna**
**Editor:** Thank you for joining us today, Rameez. We’ve seen a noticeable trend of subscribers opting to pause their streaming services instead of canceling. Could you elaborate on what you believe is driving this behavior?
**Rameez Tase:** Absolutely! This trend reflects how consumers are adapting to the rising costs of streaming subscriptions. With various platforms like Netflix and Hulu increasing their prices, viewers are being more strategic about their spending. By pausing rather than canceling their subscriptions, they can manage their costs while retaining access to their favorite shows and movies.
**Editor:** That’s interesting. You mentioned that streaming habits are cyclical. Can you explain what you mean by that?
**Rameez Tase:** Sure! The viewing patterns of consumers tend to align with the release schedules of popular content. For instance, during the premiere of a new series or a major sports season, users sign up to catch those specific events. Afterward, when there’s a lull in content, they might choose to pause their subscriptions until something new comes out. This behavior allows them to enjoy the best of what these platforms have to offer without committing to year-round payments.
**Editor:** It sounds like viewers are becoming more budget-conscious and strategic with their entertainment choices. How do you see this impacting the streaming industry as a whole?
**Rameez Tase:** This shift could lead to a more competitive landscape. Streaming services will likely have to find innovative ways to keep subscribers engaged year-round, whether that’s through diverse content offerings or revised pricing strategies. If consumers realize they can pause and resume as they wish, this could change how services approach customer retention.
**Editor:** It will be intriguing to see how these dynamics unfold. Thank you for sharing your insights, Rameez!
**Rameez Tase:** Thank you for having me!