Survey: Streamers Would Be Hit with Wave of Cancelations if Ongoing Labor Conflicts Delay Content
At no time during the concurrent strike of the Writers Guild of America (WGA) and Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) has it seemed like studios had the upper hand in terms of public opinion. As purported details about the offers studios and streamers have made to writers and actors have leaked out, audiences have looked askance at reports that producers want to use artificial intelligence to curtail the pay of people who make TV and movies happen.
Public dissatisfaction with studios is one thing, but when customers use their money to do their talking it’s quite another. That may be happening soon, as a new survey from Whip Media, as reported by The Wrap, shows that streaming services that have to delay content thanks to the strikes are in danger of losing big chunks of their customer bases. However, at no point has either union called for a public boycott of streamers. Organizers fear that such moves would result in the studios arguing that they are not financially able to meet the guilds’ terms.
However, users of all eight streamers mentioned in Whip’s survey — Hulu, Prime Video, Max, Disney+, Paramount+, Peacock, Apple TV+ and Netflix — said they were more likely to cancel their service if substantial strike-induced delays occurred. Hulu stands to lose the most; after a stunning new season of “The Bear,” Hulu users said they were 3.4 times more likely to cancel their service if the strikes caused new content to be released more slowly. Given its mix of originals and next-day broadcast episodes, the Disney-controlled platform has a lot to lose.
Netflix saw the smallest increase in likelihood that users would depart because of delays, but it’s important to note that Netflix has one of the highest percentages of customers who say their satisfaction with the service makes them likely to cancel now. Simply put, even the world’s largest streaming service won’t be totally insulated if a prolonged strike causes a slowdown in content releases.
The demands writers and actors are making are simply not that onerous, and a departure of 10%-25% of a streamer’s customer base would be a disaster for both the companies behind them and the artists they employ. Streaming services are all desperately trying to determine how to become profitable, and a big wave of churn would be a setback that some platforms may never recover from.
Take NBCUniversal’s streaming platform Peacock, for example. That service grew from 9 million to 20 million subscribers in 2022, and has continued to build an impressive content lineup, particularly in live sports. Its gains left it confident enough to raise prices for the first time in history in 2023, but a departure of 26.5% of its customer base would wipe out all of that progress.
Neither the studios nor the unions have shown any willingness to budge so far, and companies are planning to roll out “strike-proof” fall TV schedules beginning in September. Even then, studios can pump out game shows, reality series, and show old streaming-exclusive titles on broadcast channels to fill out schedules, once significant delays start to crop up, users may signify with their subscription dollars just who they blame for the continuation of the WGA/SAG-AFTRA strikes, even if it ends up hurting the artists involved anyway.
Peacock
Peacock is a subscription video streaming service from NBCUniversal that includes original shows, blockbuster movies, and classic television series. Peacock is home to “Yellowstone,” and “The Office,” as well as original hits like “Poker Face” and “Bel-Air.” You can also watch live sports including NFL, MLB, WWE, Olympics, Premier League, NASCAR, French Open, College Football and Basketball, and PGA Tour. Premium Plus subscribers can stream their local NBC feed in all 210 markets.