Netflix’s binge model, packing the service with instant-gratification new releases and syndication-style reruns, has become a common consumer behavior in the age of digital video. But the streamer’s setup could turn against it as it enters the world of advertising, as brands consider the pros and cons of marketing to viewers who speed through series.
The streaming world broadly has come under scrutiny over the past year for its growing rate of churn, or the number of subscribers that leave a service, as profitability slows, competition heightens and consumer subscription fatigue grows. The average U.S. consumer pays for nearly five streaming services at a time, many with consistent pricing increases, according to recent data from Kantar. In the second quarter alone, 8% of streaming subscriptions were canceled, Kantar found.
“Binge watching may be great at acquiring and supporting subscription-based streaming, but it is not good for ad-supported streaming,” Dave Morgan, CEO of Simulmedia, told Ad Age. “Binge watching is not predictable, happens all at once, and then it's done. Episodic releases of shows create predictability, stretch out the audience availability and typically help the networks/publishers grow the audience over time.”