Hidden Moats in Consumer Subscription

Consumers will always churn at higher rates vs. enterprise services and even the best consumer apps can expect first year churn to be 30–50%.

HOWEVER, if consumers are finding a service useful and it becomes a part of their life, retention rates for the second-year approach 80–90% allowing CSS businesses to build extremely profitable cohorts of users that provide years of cash flow.

New data from Ampere Analysis found that 42 percent of U.S. streaming subscribers actively subscribe, cancel, and resubscribe to streaming services based on whether or not shows they like are on the network. What they also found was that people who bought into bundles, like the Disney+/Hulu/ESPN+ bundle, were 59 percent less likely to churn , so, y

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