Today’s technology gives many options to consumers and their television-watching habits. And the ease of access, and subsequent ease of cancellation, offers a new sense of freedom, much to the chagrin of networks and streaming services.
A small but growing group of users have made good use of free trials, no-contract commitments and promotional add-ons from streaming services. The latest company to feel a bite is HBO, which recently aired the season finale of “Game of Thrones,” The Washington Post reported.
“I didn’t mind paying the $15 each month because it’s the kind of show where I wanted an immediate viewing to avoid spoilers, but I’m also not interested in keeping the service since I’m not invested in anything else,” “Thrones” fan Colleen Morrison told The Post.
Morrison signed up for HBO’s service in June. She’s set to cancel only two months later. She and other fans will sign up again when the show returns in 2018 or later.
Entertainment companies are ultimately fighting a battle against consumer wallets, according to The Post. It’s easy to buy an add-on through the network itself or from one of the many cord-cutting, non-cable options. The consumer chooses another free trial on a different network as the switching continues.
Those still tied to a cable company often keep their service (and many channels they never watch) because they are bundled with something else, such as Internet service. Companies such as Hulu, HBO, Showtime, Netflix and others offer more freedom to pick and choose.
The industry sees the highest cancellation rates in TV offerings, The Post reported. This is true across the board with entertainment and sports streaming apps that are used during a specific window of time.
Netflix and other companies are trying to combat cancellations by continually giving consumers more entertainment. Netflix rolls out new shows each year by the month. HBO also is adding new series to entice loyalty.
Netflix is among the most successful of these companies, with Amazon and Hulu following close in original programming. Industry experts said others could find trouble in maintaining growth if there aren’t enough options for TV-hungry people with limited money to spend.