The streaming retention revolution Content is king, distribution is queen, but retention is revolutionary
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20,000 foot view: With video streaming transitioning into mainstream TV consumption, we have moved into the era of streaming TV. As a result, the early focus on gaining subscribers is making way for the rising challenge of retaining these newly acquired subscribers. Retention is the key metric of the emerging post-growth streaming, with the ratio of weekly active users (WAUs) who are daily active users (DAUs) becoming the key metric to measure streaming success, as streaming TV becomes a fully digitally- native experience. Content proliferation will need to make way for content curation as video becomes deeply entwined with the wider digital entertainment ecosystem.
Key insights
- Video subscriptions 2022 are now at penetration – higher than where pay-TV were in 2018 (in English markets)
- However, subscription rates have been around the mark since the start of big bang moment of 2019
- Multiple video increased year-on-year (YoY) by five to in 2022, suggesting that will start to slow as market starts to saturate
- Video streaming starting to lose direct engagement viewers with both YoY and time spent on streaming video and actual full attention down percentage points to
- This means streaming TV is increasingly becoming of, rather than distinct from, digital entertainment formats and behaviours
- services now to approach retention hooks from digital first, rather than from a TV, perspective
- At its the new retention era will marked by pragmatism and conservative taking in content investment and
Companies and brands mentioned in this report : Amazon, Amazon Prime Video, Audible, Disney, Disney+, Netflix, and Spotify