Speaking at the CES event John Martin, chairman/CEO of Turner, says: “The advertising industry needs to move with a much greater sense of urgency. We are competing against platforms that are non-advertising supported … My fear is that when the industry finally figures out addressability, everyone is going to be watching video on Hulu and Netflix.” MediaPost.
Cord-cutters are a promiscuous bunch. Cancellation rates for some streaming services are at over 50% because some users only sign up for their favorite programs, then drop off once the season is over. The expectation of churn is putting pressure on companies to add large numbers of users, all while attempting to spend efficiently on marketing and customer acquisition. Adding discounts for subscriptions with set time periods could be a response, but part of what’s so attractive about streaming services is that you can come and go as you please, rather than being locked into long contracts. The Wall Street Journal.