Over the last month, we conducted a comparative analysis of hundreds of blockbuster titles from 8 of the top U.S. streaming services and the results were striking:
Video quality for some assets was so bad, that subscribers go to another title or streaming service (churn rates are up ~ 44% according to the latest Park Associates study);
AVODs performed worse than SVODs, despite the fact that AVOD revenue depends on viewers being glued to and engaging with content;
No streaming service performed well across all assets, so none of them are where subscribers and creatives expect them to be.
With U.S. households subscribing to three or more platforms on average, viewers can easily compare striking differences in video quality across different services—especially when the same content is available on multiple platforms. Not surprisingly, studios are increasingly delivering films directly to viewers to increase engagement and guarantee viewer experience. This is vital, given their investment in action-hero brands as part of the growing $80 billion movie merchandise industry. If viewers don't engage as much with the creative, would they purchase additional products?