Analysis: Frequent usage best churn antidote for Nordics SVoD

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The fierce competition in the Nordic video streaming market shows no signs of slowing down in Q1. Following strong, pandemic-induced growth in 2020, Mediavision reports that customer retention is likely one of the most important issues this year for all SVoD players.

Mediavision’s Q1 analysis shows that frequent usage plays a key role in reducing churn.

Loyal customers and long-lasting relations are key on a quickly maturing SVoD market. Inducing high engagement (i.e. viewing) is paramount – both in frequency and time spent. During Q1 2021, Mediavision analysed how frequently households in Sweden engaged with the services they subscribe to. Most commonly, the services were used 1-3 days a week. Only 14 per cent of the hosuseholds claimed a 7-day-usage an average week. Maybe a cause for concern, almost 25 per cent quantified a ‘no-usage’ at all an average week.

Mediavision analysis points to a strong correlation between frequent use and low risk of churn. Among those that adhere to using their SVoD services 7 days a week, the risk of churn is significantly lower than for all the other customers. For those claiming a usage of the service 0-6 days a week, the churn risk increases by more than 90 per cent compared to the daily users. Market leader Netflix stands out; high-frequency usage and significantly lower churn risk among its’ subscribers.

Mediavision concludes: Consumer engagement is the name of the game as the region approaches market saturation.


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