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Even originally programming won't stop churn entirely. The originally programming is meant to pull in new subs and keep current subs engaged at higher levels s
by kevinconroy 13y ago
Even originally programming won't stop churn entirely.
The originally programming is meant to pull in new subs and keep current subs engaged at higher levels so that they are less likely to churn. If you want to cancel your subscription for whatever reason already, it may not matter if they have 100 original series, you'll still cancel.
It's all about increasing the lifetime value of each subscriber. One way is to keep them longer (e.g. reduce churn). The other is to upsell them to higher pricing tiers. We're not seeing that with the original content (yet), but what if Netflix managed to (for sake of discussion) get the rights to Firefly and made another season of it but only for people who signed up for a new "Premium Streaming" package. You'd see some complaints, but a slew of "Shut up and take my money" memes. I don't know if they'll ever do this, but it's the next logical step once they've established the original content as desirable.
- tracker1 13y agoYou know what keeps me as a Netflix customer was how easy it was to cancel. A few years back, before online streaming, I just wasn't keeping up with the disks.. so I decided to cancel. No phone queue for an hour, no muss, no fuss, just cancelled online. I seem to remember getting maybe one email a month, not two or more a week... And when they added the online streaming, I came back. I only use it a couple times a month, I find it hard to actually browse their catalog, but they do an okay job of suggestions. And I can usually find something interesting in a pinch. Most of all, I'm paying to keep them around, because of how good the experience was when I did cancel. Contrast this to XM, when I had 3 radios, and only wanted to cancel one. Took three phone calls, with hold times of over 40 min each, to be mysteriously disconnected when they couldn't convince me to keep service on a radio in a car I no longer had. After that, I cancelled the whole thing.