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Think Churn is Only an Issue for Subscription Video Providers? Think Again.
Thursday, March 31, 2022, 1:56 PM ETPosted by:Joel Cox
Co-founder and SVP, StrategusWhy AVOD services need to focus on customer satisfaction as their business model takes charge
In the early stages of the pandemic, it seemed that subscription video services had an iron grip on the cultural zeitgeist. From The Last Dance to Cheer, our conversations were dominated by the newest releases from Netflix, and the company’s stock soared together with other “stay-at-home” names like Peloton and Zoom.
Netflix’s prominence may have led some to believe that subscription video on demand (SVOD) represented the most viable business model for a post-pandemic world. However, the company’s recent subscriber miss and resulting stock decline show that SVOD may not be the right vehicle for long-term success. If Netflix can’t sustain its growth goals, entertainment providers will need to reconsider the debate between subscription and ad-supported models.Categories: Advertising
Topics: Strategus
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