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AppleTV+ and Paramount+ are most popular choices for U.S. viewers switching SVOD services

According to research by Ampere Analysis, AppleTV+ and Paramount+ are the most popular choices for U.S. viewers switching between SVOD services. 11% of viewers who unsubscribed from one service and signed up to another streamer within 60 days chose AppleTV+, with an equal proportion selecting Paramount+. Ampere Analysis reports that 14% of customers leaving a service re-subscribe within two months, reducing effective churn rates.

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According to research by Ampere Analysis – a data and analytics company specialising in media – AppleTV+ and Paramount+ are the most popular choices for U.S. viewers switching between SVOD services. For the 27 month period between Q1 2020 and Q1 2022, 11% of U.S. viewers who unsubscribed from one streamer and signed up to another (within 60 days) chose AppleTV+, with an equal proportion selecting Paramount+.

After AppleTV+ and Paramount+, Netflix was the most commonly chosen service among SVOD switchers, with almost 10% subscribing to the streamer. The least popular choices for SVOD switchers were Hulu (7%) and Amazon Prime Video (just over 6%).

The research also outlines which competitor is most likely to take direct spend from each streaming service and how customers’ existing subscriptions impact the direction in which they jump to other services.

According to Ampere Analysis, users leaving Netflix are most likely to subscribe to AppleTV+. The company notes that these switchers are “less adventurous in trying new services than switchers from other streaming services: they currently have the lowest number of streaming services among leavers from any of the major platforms.”

Those switching from Disney+ are most likely to subscribe to its sister service – Hulu – within 60 days, and conversely, those switching from Hulu are most likely to subscribe to Disney+. Similarly, while Paramount+ churners tend to choose AppleTV+ and Netflix as their next SVOD choices (in that order), their third most common pick is Showtime, which is also owned by Paramount.

Ampere Analysis believes this reflects the benefits that providers of a family of services enjoy as a result of the bundling effect, in terms of cross-promotion, greater ARPU opportunities and customer retention.

Both AppleTV+ and HBO Max churners are more likely to move their subscription to Paramount+ over other services.

The data and analytics company also revealed that around 30% of streaming subscribers switch services in any given two-month period, with 56% of churners choosing not to re-subscribe or sign up to a different service within 60 days. On average, 14% of users leaving a service re-subscribe to the same service within two months (a pattern Ampere Analysis calls ‘the boomerang effect’) therefore reducing effective churn.

Breaking the boomerang effect down by SVOD, Netflix unsubscribers are the most likely to return, with 23% re-subscribing within 60 days. The return rate for both HBO Max and Paramount+ is 15%. 11% of Disney+ and Hulu churners re-subscribe, as well as 10% of AppleTV+ leavers.

Ben French, Analyst at Ampere Analysis and author of the report, said: “Switchers are experimenting with different platform mixes within the home, moving spend to some of the newer and less penetrated services while maintaining a core base of services. It’s some of these newer, smaller services that the incumbent streamers most need to keep an eye on.”

 


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