Prime Video maintains lowest churn rate among streamers, Parks research

In the competitive landscape of streaming services, Amazon Prime Video stands out with an impressive 8% churn rate, the lowest among its peers, while Discovery+ grapples with a staggering 43%, according to the latest data from Parks Associates.

Parks Associates recently updated its Streaming Video Tracker, which now monitors churn data for 89 North American streaming video services. The tracker, accessible through an online portal, provides insights into the expansive over-the-top (OTT) video service market, covering business models, new services, global expansion, and growth trends.

The latest figures, derived from a quarterly survey of 8,000 internet households, highlight Prime Video’s success in retaining subscribers. “Churn is part of the standard business model, but companies are working hard to minimize it and keep consumers engaged longer,” said Eric Sorensen, Director, Streaming Video Tracker, Parks Associates. “Amazon Prime Video has held the lowest churn rate for the last two years because it is included with Prime; however, Netflix continues to creep closer and reduce churn by adding more tiers of service and syndicated content.”

The Streaming Video Tracker offers monthly market updates, analyzing key announcements in the streaming market, including significant content changes and industry trends. These updates, alongside the portal’s data, provide strategic insights into how different business models impact net promoter score (NPS) and churn rates. For instance, the tracker examines the bundling strategies for Disney+ and Hulu to assess their effectiveness in countering recent spikes in subscriber churn.

“Streaming services are navigating a mature market where retention and referrals, as well as partnerships and brand loyalty, are critical,” Sorensen said.

The tracker’s quarterly estimates include detailed analyses of market trends and profiles for more than 300 OTT video services in the U.S. and Canada. It estimates subscribers, viewers, and transactional users for these services, even those that do not publicly release customer figures.