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Netflix denies rumours of exiting Turkish market 

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      Home News Analyst Reports

      Netflix leads over Apple TV+ and Paramount+ in user retention: Report

      Staff Reporter by Staff Reporter
      October 19, 2024
      in Analyst Reports, News
      Netflix denies rumours of exiting Turkish market 
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      Factors such as the platform’s vast content library, genre alignment, and competitive pricing have helped it maintain a dominant position in the global streaming market.

      Streaming platform Netflix tops subscriber retention among North American SVOD services, according to a new report by BB Media which monitors more than 4,500 streaming services across 250 countries and territories.

      The research firm found that Netflix consistently excels at retaining users longer than its competitors, Apple TV+ and Paramount+. An analysis of the retention cycle shows that 55% of Netflix subscribers in North America, on average, have been with the platform for mor than two years, while 23% have been subscribers for a year and 21% for less than six months. Only 9% subscribers stay with Apple TV+ for over two years while 53% used it for less than a year. About 48% of Paramount+ subscribers used the service for less than a year, with only 14% maintaining their subscriptions for over two years.

      The report attributes Netflix’s retention success to its early presence in the streaming market. It entered the U.S. market in 2007 and expanded globally by 2016. This gave Netflix an advantage over Apple TV+ (2019) and Paramount+ (2021-2022), which entered the market during a much more competitive period.

      Another key driver of Netflix’s user retention is its vast content library. Netflix’s global catalogue is 302% larger than Paramount+ and a staggering 8,087% larger than Apple TV+. The number of original titles on Netflix is 10 times greater than Apple TV+ and 45 times larger than Paramount+. This sheer volume of content keeps users engaged and subscribed longer.

      Netflix’s genre offerings also help retain users. While Apple TV+ features only two of the top five globally preferred genres—Drama and Comedy—Paramount+ caters better to regional tastes. For instance, in APAC and LATAM, Paramount+ offers four of the top five genres: Comedy, Drama, Action, and Adventure. Netflix’s genre alignment is strong in UCAN but slightly less appealing in other regions. Still, its vast library ensures a wide variety of content that appeals to users across the globe.

      Subscription pricing has been another important factor in user retention. Paramount+ is the most affordable service when comparing standard monthly plans across regions, except in EMEA, where Netflix is cheaper. In EMEA and LATAM, Netflix is the only service offering an ad-supported plan, which averages $4.72 in LATAM. In comparison, Apple TV+ and Paramount+ standard plans are priced at $6.74 and $4.53, respectively. In EMEA, Netflix’s ad-supported plan is $3 cheaper than the standard options from Apple TV+ and Paramount+. In APAC and UCAN, Paramount+ also provides ad-supported plans that are less expensive than Netflix’s, but they are only available in Australia and Canada.

      The APAC region stands out as an exception in Netflix’s otherwise strong global retention. One major reason is that APAC was the last region where Netflix launched, only arriving in 2016. Additionally, the service is unavailable in China, one of the biggest markets in the region, limiting Netflix’s reach in APAC.

      Several factors contribute to Netflix’s success in user retention for streaming services. The platform’s vast content library, genre alignment, and competitive pricing have helped it maintain a dominant position in the global streaming market. Netflix also continues to innovate, which allows it to keep up with changing user preferences and secure long-term customer loyalty.

      As the streaming industry evolves and competition grows, Netflix’s ability to deliver diverse content at competitive prices will remain crucial to retaining users. While Apple TV+ and Paramount+ offer competitive features and pricing in specific regions, Netflix’s balanced approach keeps it ahead in terms of user retention. This well-rounded strategy ensures Netflix remains a leader in the global streaming industry, consistently attracting and retaining users.

      Tags: Apple TVfeaturedpostNetflixParamountUser retention

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