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Disney just fought off a shareholder revolt — but the clock’s still ticking
Decoder with Nilay Patel
Balancing Pricing and Churn in the Streaming Market
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In the direct consumer streaming market, the key challenge is managing churn, which was not a significant concern in traditional pay TV. The low pricing strategy in streaming services, like Netflix, is aimed at driving mass adoption. To retain subscribers, pay TV historically made it cumbersome to cancel subscriptions, which increased revenue and market size. Consequently, streaming platforms now face the need to offer low-priced or even free services to attract and keep a broad audience, as seen with free platforms like YouTube and Tooby gaining significant attention despite offering older content.
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