Newsletter 5th of May: Mediavision Q1 SVOD Analysis – Frequent Usage is the Best Churn Antidote


5 May 2021

The fierce competition on the video streaming market shows no signs of slowing down in Q1 – quite the contrary. Following a strong and pandemic-induced growth in 2020, customer retention is likely one of the most important issues this year for all SVOD services. 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, Mediavision has analyzed 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% of the hosuseholds claimed a 7-day-usage an average week. Maybe a bit worrysome, almost 25% 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% compared to the daily users. Market leader Netflix stands out; high-frequency usage and significantly lower churn risk among its’ subscribers.

To conclude: Consumer engagement is the name of the game as we approach market saturation.

Industry News

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Twitter Introduces Payments on Spaces

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Clubhouse Tests Android App

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Mediavision in the News

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De ferske kvartalstallene til strømmetjenesten Netflix viser at selskapet kun fikk fire millioner nye abonnenter i første kvartal. Strømme-tjenesten Netflix fikk fire millioner nye abonnenter i første kvartal.

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Streamingtjänsterna såg sin guldålder under 2020 men nu hopas orosmolnen över bolagen. Marknadsledaren Netflix väntas bjuda på en ljummen rapport för det första kvartalet.

Sweden: Families prefer Disney+ over Netflix

The launch of Disney+ in 2020 fundamentally changed the competitive landscape for streaming in Sweden in many ways – but perhaps most notably in the battle over families with young children.

Netflix likely to report 5% Q1 Nordic subscriber growth vs 8% market growth rate

Swedish consultancy Mediavision says it predicts that Netflix will report a 5 percent increase in Nordic customers for the first quarter of 2021, or a rise of 200,000 subscribing households since Q1 2020.

Så mycket mer pengar lägger hushåll med barn på streamingtjänster

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”Om ett år finns vi i större delen av Europa”

På Sesamy är man nöjda med lanseringen. Nu är målet att skala upp.
– Förlagen gillar oss, och att någon tänker och gör annorlunda, säger Måns Ulvestam, en av sajtens grundare.

Nordic families preferring Disney+ over Netflix

New analysis by Stockholm-based consultancy Mediavision has found Disney+ already has a “very strong” position among families with children.

Tufft för Spotify att gå från prat till pengar

Spotify börjar göra vinst, men tillväxten tappar fart. Frågan är: Om musik inte kan motivera den skyhöga värderingen, kan satsningen på poddar rädda börskursen?