Netflix has lower customer churn than competitors (or when it’s good to be older and #1)

When it comes to customer churn on major video streaming services, Netflix has significantly lower churn than competitors. I’d guess that’s from a combination of a customer base that has been longer with Netflix (month-to-month churn decline over time), Netflix being the market leader (the typical customer will cancel other services get before cancelling Netflix), and other services using more offers to sign-up new customers (trialers have higher churn).

Source: Bloomberg
Source: Bloomberg

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

2 thoughts on “Netflix has lower customer churn than competitors (or when it’s good to be older and #1)”

  1. Solid graphs!

    There might also be something about account size (family plans) and / or account sharing hidden in these numbers, which might affects Netflix standout numbers. But agree with the core idea and also can (dangerously) confirm anecdotally. 🙂

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