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DarylM Expert 5
Expert 5

Churn rates

A "churn rate" is the percentage of users of a service who will cancel their subscription in a given period (usually annually). 

 

These leavers will usually be replaced by new customers - so a churn rate of 10% doesn't mean that the overall subscriber base has decreased by 10%.  If you have enough new subscribers coming in, it's possible to have a churn rate of 100% and still show overall growth.

 

In the US, Netflix is estimated to have a churn rate of 9% - meaning that 91% of subscribers just keep their subscriptions going, even though there is no contract.

 

Smaller services, such as Hulu Plus, have a churn rate of 50% or more.

 

Sky currently has a churn rate of 10.1%

 

We will probably never find out what the churn rate for Now TV is, because those figures aren't released.  I'm sure it must be significantly higher than 10%.  But there may be some protection against higher churn because of the different passes on offer.  Someone cancelling a Movies Pass might choose to change straight away to an Entertainment Pass instead, for example.

 

Existing customers know what to expect from Now TV (duration of box sets etc), so churn may be relatively low there.  But churn will be higher among new customers who compare the service to Netflix.  One of the main reasons for new customers not continuing with a subscription may be lack of subtitles.  If subtitles were introduced in the future, I think churn rates among new customers would drop.



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24 Replies
pethead65 Expert 5
Expert 5

Re: Churn rates

@DarylM  I agree subtitles that subtitles would certainly encourage people to stay, second to that I'd put improved picture quality and probably next 5.1, at least on movies.

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SeeMoreDigital Champion 5
Champion 5

Re: Churn rates


@pethead65 wrote:

@DarylM  I agree subtitles that subtitles would certainly encourage people to stay, second to that I'd put improved picture quality and probably next 5.1, at least on movies.


I also agree that the inclusion of subtitles would most probably encourage more people to stay. Followed by (Dolby Digital) surround sound.

 

When it comes to watching movies, provided that the current 1280x720 pixel image quality remains pure progressive and clean it will continue to up-scale very well.


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DarylM Expert 5
Expert 5

Re: Churn rates

@pethead65

 

There are all kinds of reasons that new customers will join Now TV and then leave because it's not for them, or it wasn't what they were expecting.

 

Clearly, many of these things will be things Now TV can do nothing about ("but I thought that you'd have every episode of Game of Thrones ever!").

 

But, over time, it should be possible to identify the biggest shortcomings for new customers and improve the service accordingly.  This may not be easy, but it will be necessary to broaden the customer base.



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pethead65 Expert 5
Expert 5

Re: Churn rates

@SeeMoreDigital Regarding the picture quality, I think they should up the bit rate, though I have to say it's a lot better than when I joined a year ago.  I tend to watch on Apple TV as the picture and sound for me are noticeably better, I believe it's a different file format used.

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pethead65 Expert 5
Expert 5

Re: Churn rates

@DarylM I think one look at the ideas section suggests that subtitles is the big one & because it's been on there for 3 years or so,  to me it gives the impression that NOW TV just aren't bothered.  It would be better if they said it's not going to happen or ideally some sort of time frame if it is.

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SimonB1979
Regular 3

Re: Churn rates

I'd imagine there's more folk getting a monthly (whatever) pass and not renewing then staying, paying for SD broadcasts with adverts isn't much cop especially when you can get better for nowt! 🙈

 

im currently paying £45+ per month for my 3 passes, the same money can get me Amazon Prime, Netflix, Hulu, WWENetwork & an unblockus sub with money left over! ☺️

 

(NowTV is potentially a great service ruined by poor picture / sound quality and lack of subtitles! 👎🏻

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commanda6 Champion 2
Champion 2

Re: Churn rates

Hi @pethead65 @DarylM @SeeMoreDigital

 

Interestingly enough the sound quality is also very good on youview as well. But the picture quality is of course SD unfortunately. But that's probably because nowTV probably don't want to put anything more into a platform that they can't support properly. We will just have to hope that you you finally get themselves into gear and make the necessary enhancements to the platform to enable now TV to support it properly. 

 

Video wise youview hardware is capable of up to 1080p. Sky store has recently been given 720p support on youview, so that makes things look more promising for now TV in the future.


I do not work for now TV. I am simply a NowTV customer trying to help I am a Community Contributor This means that I know a lot about the service. But just like you I am still a customer. This means I cannot help you with issues that would involve looking into your account directly. A member of the now TV forum team or live chat will need to assist you with these issues.

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SeeMoreDigital Champion 5
Champion 5

Re: Churn rates


@pethead65 wrote:

@SeeMoreDigital Regarding the picture quality, I think they should up the bit rate, though I have to say it's a lot better than when I joined a year ago.  I tend to watch on Apple TV as the picture and sound for me are noticeably better, I believe it's a different file format used.


With regard to video, Apple are using MPEG-4 Part-10 (aka: h.264 or AVC) video, the same as every other streaming service. The next streaming inovation will be to use MPEG-H Part-2 (aka: h.265 or HEVC) but this will require a hardware change.

 

With regard to audio, their Apple TV box is able to output good ol' fashioned Dolby Digital (same as the new NOW TV 'black' Box) but whether the native audio stream is Dolby Digital or transcoded from multi-channel AAC to Dolby Digital, I don't know.

 

Cheers 


• If I've been helpful please press the THANKS button • If I've been really helpful please also press the ACCEPT SOLUTION button • Please note: I'm not a NOW TV employee, I'm a regular NOW TV customer, like you! •

LG TV 1 = Model no: 43UH668V | Software: 04.30.70 | OS: webOS 3.31 • LG TV 2 = Model no: 65UH770V | Software: 04.31.10 | webOS •

All TV's = NOW TV app: 2.27.0 | Post Processing Features: All disabled  • Networking Spec = ISP: Virgin Media (75Mbps) | Devices connection type: Wired | IP address type: Fixed (device permitting) •


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DarylM Expert 5
Expert 5

Re: Churn rates


@pethead65 wrote:

@DarylM I think one look at the ideas section suggests that subtitles is the big one & because it's been on there for 3 years or so,  to me it gives the impression that NOW TV just aren't bothered.  It would be better if they said it's not going to happen or ideally some sort of time frame if it is.


Subtitles seems to be the big one.  I'm aware that Tom's explained the reasons why it's difficult to do (variable bit rates would result in blurry subtitles).

 

It's clearly possible since other services have them.  But I believe it would require wholesale change to the system which Now TV delivers video by.  I'm sure they'd prefer to have subtitles.  I'm hopeful that the new box will make any potential change more viable.



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Those little green stars by my name mean that I'm a Community Contributor - not Now TV staff. I just try to help out if I can.