Why Retaining Streaming Subscribers Is More Cost-Effective Than Acquiring New Ones

Subscriber churn is one of the most persistent and frustrating challenges for streaming services. You work hard to acquire users through marketing campaigns, trials, partnerships, and then just as quickly, they disappear. But here’s the thing: retaining your existing subscribers is almost always more cost-effective than acquiring new ones.

Before you invest more into lead gen and acquisition, ask yourself: What if improving your churn rate could give you better ROI, faster?

To help you benchmark your current strategy and identify areas for improvement, we created the 7-Step Streaming Churn Self-Assessment, a free checklist and infographic that covers all the key areas from engagement and payments to win-back campaigns. Download the checklist & infographic to see where you’re loosing subscribers, and how to fix it.

The Hidden Cost of Subscriber Churn

Did you know it can cost up to 5x more to acquire a new subscriber than to retain an existing one? But churn doesn’t just mean lost revenue; it increases your customer acquisition costs (CAC), impacts brand perception, and can stall your growth trajectory.

And while voluntary churn (users actively cancelling) is easy to spot, involuntary churn is often more damaging, as failed payments, expired cards, and billing errors silently erode your subscriber base. If you’re not actively addressing both, you leave money on the table.

Why Retention Is a Smarter Growth Strategy

Keeping subscribers engaged and loyal doesn’t just protect your revenue, it multiplies it:

• According to Bain & Company, improving retention by just 5% can increase profits by 25–95%.
• Happy, loyal users are more likely to refer others, reducing your acquisition costs
• Engaged subscribers are more open to upselling opportunities (premium plans, paid content, etc.)

Retention isn’t just a back-end KPI. It’s a front-line business growth lever. At Magine Pro we’ve seen simple card expiry reminders that auto alert users before their card expired help our customers see an 18% reduction in involuntary churn. Other retention-focused tools we offer within our platform have also driven strong results – see the infographic checklist for more..

What Causes Viewers to Churn?

Understanding churn is the first step toward solving it. Common culprits include:

• Content fatigue: Viewers run out of things to watch or don’t see enough fresh, personalised recommendations
• Poor user experience: Clunky navigation, slow loading, or inconsistent app performance
• Payment failure: Involuntary churn from expired or declined payment methods
• Low engagement: Users forget the service exists if there are no timely nudges, updates, or perks

Churn is often a combination of several small friction points that build up over time. The first step to solving it? Understanding what’s causing it.

Take the Self-Assessment

Use our 7-step checklist to evaluate how well your platform is set up to keep users around. From onboarding to billing to re-engagement, it’s designed to help you spot the gaps and take action fast.

Whether you’re an AVOD service, SVOD operator, or somewhere in between, this guide will help you pinpoint what’s working and what needs attention. Download here.

Want to learn more about Magine Pro’s retention tools and how our platform can support your growth? Speak to a member of our team to explore how we can help reduce churn and book a personalised demo.