Netflix: Why Subscriber Retention is High as New Subs Flock to the SVOD Leader

There are two drivers of a success for an SVOD service: Subscriber Acquisition & Retention.

  • Netflix continues to attract new subs during its relentless global expansion.
  • Its retention rate is reported to be high, despite recent rate increases.
  • Subscribers keep on coming, and they don’t go away.

Here are several reasons why:

Source: U.S Subscribers, Statista

1. Netflix Originals

2. Global Satisfaction

  • Netflix is investing heavily to become the #1 global SVOD brand.
  • Originals are being commissioned in more and more global markets, as far apart as Ireland, Turkey and India.
  • Takeaway: Content is relevant no matter where you live.

3. Netflix Viewing

4. Netflix A-listers

  • A-list actors and directors are flocking to Netflix for scripted series and movies.
  • The Netflix documentary strategy also targets A-List directors, producers and talent.
    • The preferred subject material also often covers A-Listers, like Lady Gaga.
    • Even Stephen Spielberg shows up in the documentary category for Five Came Back.
  • In the first few entries, my Netflix documentary database includes: Guillermo del Toro, Francis Ford Coppola, James Cameron, Mitt Romney, Louis Theroux, Barbara Kopple, Edward Norton, Leo DiCaprio, Morgan Neville and many such more…
  • Takeaway:  Big names drive customer awareness and press, build perceived value, and thereby encourage retention.

5. Netflix: Programming Decisions & BIG DATA

6. Netflix: Retention Operation

  • Netflix is invested in winning back its customers who cancel their subscriptions.
  • For example, I discovered that our household was paying for two subscriptions.
  • I cancelled one of them, but then received several calls from a customer service rep.
  • He had completed a PhD in the arts of gentle persuasion and he just didn’t want me to go away.
  • Takeaway: Netflix doesn’t readily accept “Unsubscribes”.

7. Netflix is Inexpensive 

Even at its higher rates, I’d wager that many Netflix subscribers still see it as the best value around. Compared to going to out to the movies, subscribing to pay-TV or premium channels like HBO, Showtime, etc or attending a live sporting event, Netflix is quite inexpensive – all the more so for families. For many families on a budget, Netflix is an unbeatable value proposition. Will Richmond

  • Takeaway: Why not keep paying for a subscription that is great value?


Updated November 2018

Original analysis and coverage from DocumentaryBusiness.com 95+ pages, with charts and links

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