Retention cycle analysis shows that most Apple TV+ and Paramount+ users cancel their subscriptions within six months, while Netflix subscribers (except in APAC) stay for over two years. That is a big difference. Keeping people engaged and interested in your service four times longer than your competitors really makes a difference.

Netflix's strong global retention is not unique to APAC. A big reason for this is that APAC was the last region where Netflix launched, arriving there quite late in 2016. The service is also not available in China, one of the largest markets in the region, which limits Netflix's reach in APAC.

Analyzing the situation, we can find clear reasons that have played a crucial role in Netflix's strong position and success in retaining customers. First and foremost is Netflix's early presence in the streaming market. It entered the US market in 2007 and expanded globally by 2016. This fact gave Netflix an advantage over Apple TV+ (2019) and Paramount+ (2021-2022). These two companies entered the market at a much more competitive time.

Netflix's content library is another important factor that contributes to user retention. Netflix's global catalogue is 302% larger than Paramount+ and a staggering 8,087% larger than Apple TV+. Netflix produces 10 times more original titles than Apple TV+ and 45 times more than Paramount+. This sheer volume of content is sure to keep users engaged and subscribed for longer. People who are watching their favorite show or another good movie don't want to leave the platform.

Netflix's genre offerings also contribute to user retention. Apple TV+ offers only two of the top five global genres - drama and comedy. Paramount+ is more focused on regional tastes. For example, in APAC and LATAM, Paramount+ offers four of the top five genres: Comedy, Drama, Action and Adventure. Netflix's genre focus is strong in UCAN, but less so in other regions. In general, its vast library ensures a wide variety of content. This makes its offering unique and appealing to users around the world.

Now let's talk about price, which is a key factor in user retention for streaming services. Paramount+ is the most affordable service when comparing standard monthly plans across all regions, except in EMEA where Netflix is cheaper. In EMEA and LATAM, Netflix is the only service offering an ad-supported plan, which averages USD 4.72 in LATAM. In comparison, Apple TV+ and Paramount+ standard plans are $6.74 and $4.53 respectively. In EMEA, Netflix's ad-supported plan is $3 cheaper than the standard Apple TV+ and Paramount+ options. In APAC and UCAN, Paramount+ also offers ad-supported plans that are cheaper than Netflix's, but they are only available in Australia and Canada.

As we can see, many factors contribute to Netflix's success in retaining users for streaming services. Its genre focus, content library and competitive pricing have all helped it maintain a leading position in the global streaming market. What's more, Netflix has not forgotten to innovate, keeping pace with changing user preferences and ensuring long-term customer loyalty. Interesting content helps them to remain the most watched platform in the world.

Netflix has always found ways to stay on top. The streaming market is now growing and evolving rapidly. The competition is growing every day, and without making good decisions and trying to anticipate the future of the market, the chances of staying on top and running a profitable business are slim to none. Netflix is clearly doing what needs to be done. Its ability to deliver diverse content at competitive prices has been, and will continue to be, crucial to retaining users. While Apple TV+ and Paramount+ offer competitive features and pricing in certain regions, Netflix's balanced approach keeps it ahead in terms of user retention.

There are many streaming platforms, but Netflix is undoubtedly the number one. It is the most popular content provider, literally everyone who is interested in streaming services thinks of it first. We see them in the media on a regular basis, and Netflix comes up in private conversations more than any other streaming platform in my experience. Is there anyone who can take their place in the near future, in my opinion, probably not.

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#SzymonKarbowski #StreamVX #Netflix #AppleTV #Paramount #UserRetention

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