While customers are subscribing to services that provide anything from software, physical products, entertainment to continuing education, they also don’t always stick with those subscriptions.
A subscription benchmarks report by Recurly finds that subscription services across industries have a median churn rate of 7.02%.
Before exploring the highlights of the study, it’s worth noting that as this data is based on Recurly client figures, subscriptions sold via invoicing or other payment options (a typical process for large B2B SaaS products in particular) are unlikely to be included in these analyses.
Recurly analyzed more than 900 e-commerce sites that use their subscription management platform over a 24-month period (January 2017 to December 2018) and found that with a 10.65% churn rate, the OTT industry has one of the highest such rates of any B2C industry, second only to box of the month subscriptions (12.71%).
Perhaps this is not too surprising, as recent research from Comscore demonstrates that while there are many OTT services available in the US, only four (Netflix, YouTube, Amazon Video and Hulu) have more than 25% reach.
Separate figures by Hub Entertainment Group on indispensable TV programming also shows that only Netflix has more than 4 in 10 subscribers stating that they would keep the service if forced to abandon the others. Read the rest at Marketing Charts.