Study: Apple TV+ and Paramount+ Most Likely Destinations When Consumers Swap Streaming Services
Netflix famously lost subscribers in the first quarter of this year for the first time in years, and expects to lose more when the company announces its second-quarter earnings later this week. But when customers switch subscription video-on-demand (SVOD) services, where do they go?
“SVoD customers in the US who switch spend from one platform to another are most likely to choose Apple TV+ or Paramount as their next platform,” the study says. “But the existing in-home mix of services has a big influence on subsequent choices.”
Of those who switched across all platforms between the first quarters of 2020 and 2022, about 11% each chose Apple TV+ and Paramount+. Netflix came in third, among those switching from other services.
Among those who left Netflix specifically, Apple TV+ was the top choice, followed by Prime Video and Hulu. This somewhat echoesa report from earlier this year that indicates that when customers leave the world’s largest streaming service, they are most likely to choose Apple TV+ or Disney+.
As for those leaving Disney+, despite the existence of the cost-effective Disney Bundle, the most frequent service to switch to is the Disney-controlled Hulu. The opposite is also true — those leaving Hulu were most likely to switch to Disney+.
As for the question of whether those who leave services ever come back, they certainly do. In fact, 23% of those who left Netflix during the period in question signed up again within two months. That number is 15% each for HBO Max and Paramount+, 11% each for Disney+ and Hulu, and 10% for Apple TV+.
The period of the study includes both the early pandemic months — when Netflix was riding high — and the most recent quarter when Netflix showed signs of vulnerability.
“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,” said Ampere’s Ben French. “It’s some of these newer, smaller services that the incumbent streamers most need to keep an eye on.”
With ever-increasing competition in the world of streaming, it is no surprise that consumers are bouncing back and forth in order to find the right mix of services to meet their needs. As customers continue to sample various services, it will be important for each individual streamer to live up to the value proposition that got their new customers in the door in the first place, or, they will likely be heading back out just as quickly as they came in.