Survey: discovery+ Saw 68% Increase in Cancelations in June as Max Gains Traction with Splintered Userbase
Survey: discovery+ Saw 68% Increase in Cancelations in June as Max Gains Traction with Splintered Userbase
Combining HBO Max’s library with much of the content from discovery+ was seen as a no-brainer move by many covering the streaming industry when Warner Bros. Discovery announced its plans for what eventually would be known as Max. More content on one streaming service is usually a good thing, and less friction for WBD’s customers as they move between platforms would only aid in finding something new to watch, keeping them engaged for longer.
A new report from Antenna, which analyzes data in the subscription economy, shows how customers are reacting to the shift from HBO Max to Max. Overall, the numbers indicate that discovery+ subscriptions have fallen 2.4% year-over-year, while Max subscribers have risen 20.9% in the same timeframe. This data is especially invaluable considering WBD does not report separated subscriber numbers for Max and discovery+ to the public separately.
Antenna’s data shows that discovery+ subscriptions have steadily fallen over time, as more and more customers are growing accustomed to finding the discovery+ title they want to see on Max and therefore are becoming comfortable canceling their subscription to the lifestyle streamer. The percentage of users who subscribe to both services has remained consistent year-over-year, which shows that some Max users still think there are holes in the discovery+ content available on the flagship streamer.
The survey from Antenna also shows that discovery+ cancelations spiked after the launch of Max. The company measured more than 640,000 canceled subscriptions for discovery+ in June, the first full month following the rollout of Max. That number represents a 68.1% increase in cancelations compared to June 2022. Users who canceled discovery+ for another streaming service were predictably most likely to switch to Max.
On its face, the data from Antenna seems to fly in the face of a new report that showed discovery+ as one of the fastest-growing streaming services in the second quarter of 2023. However, that survey opens up the field a bit, showing discovery+ is growing at a faster rate than competing services like Apple TV+ and Peacock. Its growth rate relationship to its fellow WBD streaming service is another matter entirely, as Antenna’s numbers demonstrate.
One reason there may be so many customers willing to subscribe to both Max and discovery+ is the amount of content that didn’t make its way to the new service. Data compiled in June showed that hundreds of titles from discovery+ had yet to make their way to Max, stoking concerns that discovery+ users would be hesitant to adopt the service.
But Antenna’s numbers can put that fear partially to rest. Best yet for WBD, the company is most-often seeing users switch to the same level of plan on Max that they had on discovery+. In other words, users who were commercial-free discovery+ customers are most likely to choose the ad-free Max plan, despite a $9 monthly price jump between those two plans, going from $6.99 to $15.99.
Switching to Max drives up the average revenue per user (ARPU) that WBD sees for its streaming customers, so Antenna’s survey will undoubtedly be seen as good news in company circles. The service will continue launching content hubs, such as the new OWN hub rolled out earlier this week, to direct users on Max to discovery+ content, but the combined service is doing an efficient job at bringing in new subscribers.
Max
Max is a subscription video streaming service that gives access to the full HBO library, along with exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Thanks to the B/R Sports add-on, users can watch NBA, MLB, NHL, March Madness, and NASCAR events.