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"Annual cancellation rates for cable and satellite distributors ~ 4%. Surveys of consumers show that churn rates at streaming services tend to be significantly higher. Netflix, which has the lowest turnover rate of any streaming service, still loses ~ 7%"
bloomberg.com/news/articles/…
bloomberg.com/news/articles/…
"Not bound by long-term contracts, streaming subscribers can easily be lured away. In surveys, Parks Associates found that 28% of consumers said they have subscribed to a streaming service to check out just one title."
CAC = lower without long term contract. Churn = inverse!
CAC = lower without long term contract. Churn = inverse!
The benefits of lower churn can be nonlinear because you avoid The customer acquisition cost or it is lower "retention CAC." The best way to grow is often not to shrink (assuming positive unit economics). "Every factor is connected in The Great Circle of Life." Mufasa
