Churn Rate
The percentage of subscribers who cancel their streaming subscriptions within a given period.
Definition
Churn rate measures subscriber attrition, typically calculated monthly or annually. High churn indicates content or value problems; low churn suggests strong subscriber satisfaction.
Streaming economics depend on retention—acquisition costs make frequent churners unprofitable. Platforms balance new content investment against churn prevention.
Why It Matters
Churn directly impacts platform profitability and valuation. Wall Street scrutinizes churn metrics, making subscriber retention a top streaming industry priority.
For content strategists, understanding churn drivers helps prioritize investments in content that keeps subscribers engaged.
Examples in Practice
Netflix's password sharing crackdown aimed to convert account sharers into paying subscribers, reducing effective churn. Disney+ bundles multiple services to increase value and reduce cancellation incentives.
Seasonal churn spikes around hit show conclusions as subscribers who joined for specific content cancel until next season.