Here’s Why Most Streaming Services Get Cancelled

July 12, 2016

3:00 pm

In today’s sharing economy, it’s more important than ever for companies to address users’ concerns and incorporate solutions into the framework of the products. When it comes to streaming services, users are drawn to their convenience and popularity in accessibility. With companies like Hulu and Netflix, users can watch their favorite shows on a variety of devices. But even with that convenience, some streaming services are more vulnerable to losing their customers.

So what’s the cause? According to research by IBM, it comes down to advertisements. According to IBM’s research, Netflix remains the least likely to get cancelled of the major services, with Hulu and Amazon seeing a much larger number of total cancellations. 40 percent of consumers have stated they have cancelled either Hulu or Amazon, with only 30 percent having cancelled a Netflix subscription.

As the IBM report states:

When it comes to churn, too many ads and high costs are the most common reasons that subscribers cancel an SVOD (subscription video-on-demand) service. Not enough content to watch and technical problems are next on the list, emphasizing once again that viewers not only have a strong appetite for content, but also expect a premium experience

When it comes to the why behind our reasons for cancelling, things become interesting. 25 percent reported that price was the main reason behind them cancelling a streaming service. And while that is expected when it comes to cutting costs, a more troubling statistics came in first place: people were cancelling these services because of advertisements (27 percent).

This shows that the ad tech industry needs more of a push to evolve to better address user concerns. While entertainment has evolved, ads have stuck it out in the 20th century for years. And while some companies have experimented with interactive ads, we are a long way from being entertained by people trying to sell us things.

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Cameron is a tech and culture journalist, comic book enthusiast, and lives near New York City. A graduate of Stockton University, she's using her words to shift the world of online journalism, one byline at a time. When she's not writing, she can be found reading sci-fi novels, collecting succulents, and planning her next obnoxious hair color. Cameron is an editorial fellow at Tech.Co. Send your tips to cameron@tech.co or tweet @BlkGirlManifest.

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