Premium SVOD Enters Next Phase of Maturity as Growth Stabilizes

Antenna’s latest State of Subscriptions Report: Premium SVOD 2024 Year in Review reveals a shifting streaming landscape. While the Premium SVOD category grew 10.4% year-over-year, the industry is moving beyond its rapid expansion phase and settling into a more stable and sustainable growth model.

One of the most notable shifts is the decline in churn, which dropped year-over-year in the final three months of 2024—a major change after nearly two years of rising subscriber turnover. At the same time, resubscriptions are becoming a bigger factor, with 45% of canceled subscribers returning within a year, effectively lowering net churn to under 3%.

Other key takeaways shaping the industry include:

• Ad-supported plans are gaining momentum – 57% of new sign-ups in 2024 chose ad-supported plans, and 45% of all active subscriptions now include ads.
• Streaming prices continue to rise – Ad-free plans jumped 23% in two years to an average of $13.88, while ad-supported plans rose 25% to $7.57—but so far, the price increases haven’t slowed growth.
• Live events drive sign-ups, but retention is mixed – Netflix saw a 1.4M subscriber spike from the Paul vs. Tyson fight, but many of those sign-ups canceled within a month, suggesting live content may work better for acquisition than retention.
• Third-party distribution expands audience reach – Apple TV+ gained 1.5 million sign-ups via Amazon Channels, with 73% coming from first-time Apple TV+ users—a sign that distribution partnerships are an effective growth lever.
• Bundles are proving to be a strong retention strategy – The Disney x Max bundle accounted for 1 in 5 Max sign-ups and retained 80% of subscribers after three months—outperforming standalone offerings and showing that bundling is becoming a critical retention tool.

While streaming remains a high-churn industry, these trends suggest that platforms are finding new ways to retain subscribers longer while improving monetization strategies through pricing adjustments, live content, and strategic partnerships.

INSIDER TAKE

The Premium SVOD industry is maturing into a retention-first model, and streamers are adjusting their playbook to match this shift. Here’s what stands out:

1. Churn is stabilizing, but subscriber behavior is evolving – Resubscriptions are now a major factor, with nearly half of canceled subscribers returning within a year. This suggests that win-back strategies and re-engagement efforts are paying off.
2. Ad-supported models are now mainstream – More than half of new sign-ups opted for ad-supported tiers in 2024, signaling that price-sensitive consumers are willing to accept ads in exchange for lower costs. This shift aligns with streamers’ efforts to diversify revenue streams beyond traditional subscriptions.
3. Price hikes haven’t slowed growth—yet – Despite significant increases in both ad-free and ad-supported plans, subscription growth remains strong. However, the long-term impact on retention remains a key industry question.
4. Third-party distribution is unlocking new audiences – Apple TV+’s success on Amazon Channels shows that distribution partnerships can effectively reach untapped consumers—especially those who haven’t previously subscribed.
5. Bundles are a retention powerhouse – The Disney x Max bundle’s strong survival rate reinforces that packaging services together is one of the most effective ways to reduce churn and extend subscriber lifetime value.
6. Live content is a double-edged sword – While sports and special events drive big acquisition spikes, retention is inconsistent. Netflix’s Paul vs. Tyson fight brought in 1.4M subscribers, but many left quickly—showing that one-time events may not build long-term loyalty.

Looking ahead, the challenge for SVOD platforms will be balancing profitability with sustainable subscriber growth. The services that effectively blend pricing strategy, content investment, and retention-focused models will be best positioned to thrive in this next phase of streaming.