How to reduce churn rate in SVOD streaming platforms

Subscriber churn is one of the biggest challenges Subscription Video on Demand (SVOD) platforms face today. Due to ever-increasing competition, rising content costs, and changing viewer behaviour, subscriber retention has become as important as subscriber acquisition.

According to a study by Antenna, the churn rate for premium SVOD services rose by 34.5% year-over-year, underscoring the urgent need for platforms to implement effective retention strategies. This article explores data-driven strategies to reduce churn on SVOD platforms, keep subscribers engaged, and maximise long-term revenue.

Understanding SVOD churn

Subscriber churn refers to the percentage of users who cancel their subscriptions in a given period, resulting in a loss of revenue for the service provider. It is a key performance indicator (KPI) for video-on-demand (SVOD) subscription platforms, as it has a direct impact on customer retention and long-term profitability.

To determine churn, you compare the number of users who left the service to the total number of subscribers at the beginning of that period.

For example, if a streaming platform starts the month with 100,000 subscribers and 5,000 of them cancel by the end of the month, the churn rate would be 5%.

To grasp the scale of this phenomenon, let’s take a look at the churn rates of the world’s most popular streaming services. Between April 1, 2023, and March 31, 2024, Hulu had a churn rate of 15%, while Max and Peacock each recorded 17%. Disney+ saw a higher churn rate at 21%, with Paramount+ reaching the highest at 24%.

Types of churn

Churn can be divided into two categories: the first is voluntary churn – which occurs when a subscriber voluntarily and consciously decides to cancel their subscription. This usually happens when users no longer see enough value in the service or encounter external factors that influence their decision. Common reasons for voluntary churn include high costs, lack of interesting content, poor user experience, and subscription fatigue.

The second is the involuntary churn of subscribers. This occurs when a subscriber inadvertently loses access to their subscription, usually due to billing issues. Unlike voluntary cancellation, these users may still be interested in the service.

Top reasons for SVOD churn

Subscriber churn is a major challenge for streaming platforms. Understanding these reasons is key to improving retention and reducing subscription cancellations. What are the most common reasons why users churn?

1. High subscription costs

Many users churn when they feel the price is too high for the value of the service. As more platforms introduce price increases, budget-conscious consumers reduce their subscriptions. Competitor promotions or free trials of other services often tempt users to switch.

2. Subscription fatigue (too many services)

The rise of multiple streaming platforms has led to subscription overload. Users may switch services, cancelling one to temporarily subscribe to another. Some people would rather wait for content worth watching than maintain multiple subscriptions.

3. Lack of fresh or engaging content

A limited content library or lack of recent updates can turn users off. Viewers lose interest when their favourite shows or genres are not refreshed regularly. Some platforms focus too much on quantity over quality, leading to low engagement.

4. Poor user experience (UX) and navigation issues

Slow load times, buffering, and app crashes frustrate users. Cluttered interfaces or confusing navigation make it hard to find content. A lack of personalised recommendations leads to dissatisfaction.

5. Payment failures and involuntary churn

Expired credit cards, insufficient funds, or bank declines cause accidental cancellations. Users may forget to update their payment details, inadvertently losing access. Some platforms do not have grace periods or retry periods, leading to subscriber churn.

6. Competition from free or ad-supported services

Free, ad-supported platforms (AVOD) like YouTube, Pluto TV, and Tubi attract budget-conscious viewers. Many users downgrade from paid subscriptions to free services when costs become a concern. Some prefer ad-supported tiers over premium subscriptions to save money.

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Enhancing content strategy to boost retention

Content is a key reason why users subscribe to an SVOD platform and a key factor in why they leave. A strong content strategy that keeps subscribers engaged and provides ongoing value is essential to reducing churn. The right mix of exclusive content, regular updates, and personalisation can significantly improve retention.

Invest in exclusive and original content

Subscribers are more likely to stay loyal to platforms that offer unique content they cannot find anywhere else. Investing in high-quality original series, movies, and live events builds brand identity and gives users a compelling reason to keep their subscriptions active.

Additional features like early access to new releases, behind-the-scenes content, or interactive experiences can enhance the subscriber experience and encourage renewals.

Maintain a consistent content release schedule

Users are more likely to drop off when they feel there is nothing new to watch. A well-planned release schedule ensures that fresh content is regularly available, keeping engagement levels high.

Some platforms publish episodes weekly, keeping subscribers engaged for longer periods of time rather than encouraging short-term viewing. Others focus on monthly content releases, ensuring there is always something new in the catalogue. A combination of these strategies works best, balancing highly anticipated content with consistent, smaller releases to maintain ongoing interest.

Diversify content to appeal to a wider audience

A diverse content library reduces churn and ensures that different audience segments will always find something interesting. A streaming service that focuses too much on one type of content risks alienating users with different preferences.

The well-balanced library includes blockbuster films and series for core audiences, documentaries and reality content for non-fiction viewers, sports and live events, child- and family-friendly content to encourage multiple users to subscribe, and localised content in multiple languages to increase international reach.

Platforms that effectively combine mainstream and niche content tend to maintain a broader user base. For example, adding international films or independent productions can attract new audiences while retaining existing subscribers.

Use AI-powered personalisation to keep viewers engaged

Subscribers who struggle to find relevant content can lose interest. AI-powered recommendation engines help tailor the viewing experience by serving content that aligns with individual preferences.

Key personalisation tactics include smart recommendations based on past viewing habits, customised home screens that highlight preferred genres, and dynamic thumbnails and descriptions that adapt to a user’s interests.

Some platforms even personalise small details, such as selecting different cover images for the same show based on user preferences. Algorithms can also identify disengaged subscribers and trigger targeted outreach campaigns, such as email reminders or in-app recommendations, to encourage re-engagement.

Data-driven retention strategies

SVOD platforms can leverage data analytics to detect at-risk users and take action.

Use data to identify at-risk subscribers

Monitoring user behaviour allows platforms to detect early signs of churn. If a subscriber is watching less frequently, browsing without selecting anything, or not logging in for an extended period, they may be considering cancelling their subscription.

To re-engage at-risk users, platforms can: send personalised email recommendations based on previous viewing habits, offer temporary discounts or access to exclusive content, or use push notifications to highlight popular shows or new releases.

Exit surveys and feedback

Understanding why users are leaving provides valuable information that can help refine retention strategies. Platforms should implement exit surveys that prompt users to select a reason for cancelling (e.g., pricing, lack of content, technical issues), re-engagement emails that offer solutions tailored to their concerns, and community engagement initiatives like user surveys to gather feedback before users reach the point of cancellation.

If a large portion of subscribers cite price as a reason for churn, the platform should consider introducing cheaper ad-supported packages or flexible pricing models.

Pricing and subscription flexibility

The cost of subscriptions is one of the most common reasons why users abandon SVOD services. Offering flexible pricing models, customisable plans and alternative payment options can help retain subscribers who might otherwise leave due to budget constraints.

Tiered subscription plans to match different budgets

Not all subscribers are willing to pay the same price for a streaming service. Tiered pricing models allow platforms to offer multiple levels of access, meeting the needs of both budget-conscious users and those who want a premium experience.

For example, it is possible to offer ad-supported plans (a cheaper or free ad-supported tier makes the service more accessible to cost-sensitive users while generating ad revenue), standard plans without ads, and premium plans (options that offer features such as higher resolution, more simultaneous streams or access to exclusive content).

Bundled services and discounts

Bundling SVOD services with other platforms or telecom providers is becoming more common. When users get access to streaming as part of a larger package, they are less likely to churn because the service becomes part of a broader offering.

One common approach is multi-service bundles, where multiple streaming platforms are bundled into a single, cheaper package. This allows users to enjoy a wider selection of content at a lower overall cost.

Another successful strategy involves partnerships with telecommunications and internet service providers, offering free or discounted access to streaming subscriptions as part of an internet or mobile plan. These partnerships increase customer retention by integrating streaming services into basic monthly expenses.

Family and group plans also play a key role in reducing churn. Sharing a single subscription with loved ones at a reduced cost per person makes cancellations less common. These shared plans encourage long-term commitment, as users are less likely to churn if they are part of a group that relies on the service.

Improving user experience

A seamless and intuitive user experience is essential to retaining subscribers on SVOD platforms. If users have trouble navigating, are experiencing frequent buffering, or have difficulty finding content they like, they are more likely to cancel their subscriptions. A well-designed platform prioritising ease of use, fast performance, and personalised interactions can significantly reduce churn and keep viewers engaged.

One of the key aspects of improving UX is optimising platform navigation. Users should be able to quickly find and access their preferred shows and movies without endless scrolling. The homepage should be clearly structured with clear categories, intelligent search functions, and AI-powered recommendations. Features like “Continue watching,” “Recently added,” and “Because you watched” sections direct users to relevant content, making the experience more personalised.

Technical performance is another critical factor affecting user retention. Long loading times, buffering issues, or inconsistent playback can frustrate users and push them to competitors. SVOD platforms need to provide fast loading, adaptive streaming quality, and a responsive interface across multiple devices.

To sum up

In the competitive world of SVOD, customer retention is as important as customer acquisition. To reduce churn, platforms must focus on engagement, convenience, and value. A steady stream of fresh content, intuitive navigation, and flexible pricing keep users engaged, while personalisation and proactive measures prevent churn before it happens.

Rather than reacting to an opt-out, the smartest platforms anticipate it – offering the right content, at the right time and with the right experience. Ultimately, subscribers stay where they feel entertained, understood, and appreciated.

At Spyrosoft BSG, we help streaming platforms strengthen user engagement and build experiences focused primarily on retention. Whether you want to increase content discoverability, improve platform performance, or introduce new engagement tools, we have the experience and technology to help.

Contact us via the form below and let’s talk about how we can support your growth!

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