Combating Subscription Fatigue: A Data-Driven Approach for Streamers

The subscription model sprinted to popularity in recent years, and with it the meteoric rise of streaming services. But subscription fatigue—the feeling of inundation from the number of subscriptions consumers must manage—has become a quickly growing phenomenon that prompts the overburdened consumers to retake control of their wallet.

Streaming platforms have been quick to respond to consumer churn by increasing prices and launching new ad-supported offerings. However, streaming platforms may underestimate both the price sensitivity of their consumers and their eagerness to trade down. Coupled with new laws such as the “click-to-cancel” rule announced by the Federal Trade Commission in October 2024 targeting platforms’ dependency on their inactive user bases, streaming services are in a predicament not easily resolved by solely increasing price. The looming challenges facing subscription-based media, if not mitigated, are likely to impede profitability.

Here are five key tools and measures that can help subscription services get ahead:

1. Strategy Workshopping
2. Subscriber Models for Scenario Testing
3. Integrated P&L Model to Understand Profitability Implications
4. KPI Reporting to Support Real-Time Decision-Making
5. Cost Takeout