American households with children are less likely to cancel their subscription video on-demand (SVOD) streaming services compared to those who identify as childless cat families, according to the findings of a new study.
The report, from analytics firm Ampere Analysis, showed families with kids were 28 percent less likely to drop a SVOD service during the first quarter (Q1) of the year, compared to 36 percent of families without children living at home.
The trend helps illustrate why streaming services like Paramount Plus, Disney Plus and Max — which are built around kid-friendly titles, or offer a deep library of children’s programming through associated brands like Nickelodeon and Cartoon Network — are sticky in American homes with children.
Related: Streaming revenue to overtake pay TV this year, Ampere says
For other streamers, it could pose a bit more of a challenge, as new program commissions have impacted the creation of new children’s programming at a higher rate — potentially putting services like Netflix and Amazon’s Prime Video in a pinch, unless they are willing to fund their own productions.
“A global decline in commissioning caused by slowed growth in the streaming market poses a range of challenges to children’s content,” Olivia Deane, a research manager at Ampere Analysis, said in a statement. “Children & Family titles were the third most affected by this slowdown between 2022 and 2023. They were behind only the more expensive genres of Drama and Crime & Thriller. Those who can find independent funding, especially for titles based on existing intellectual property with reliable audience appeal, will have an advantage in a busy acquisitions market.”
Kid- and family-friendly programming saw a 15 percent decrease in new TV commissions globally between 2022 and 2023, the first year of post-coronavirus pandemic television production. With new production on the decline, streaming services took advantage of opportunities to acquire existing content from global TV broadcasters and licensors, with acquired titles increasing 4 percent during the same time period.
This article, Kids are key to reducing streaming subscription churn, was first published at The Desk. To submit a news tip, comment or request for correction, please click or tap here.
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