Comcast and Amazon: reducing churn with an SVoD stack?
Comcast, which added Netflix to its X1 set top boxes in 2016, recently also added Amazon Prime to its service, making it the first TV operator in the US to do so. This suggests that the company is increasingly willing to embrace Subscription-Video-on-Demand (SVoD) services as complementary to its TV offering. Comcast subscribers are already heavy SVoD users, with the average Comcast household taking three SVoD services (slightly higher than the US average). As of Q1 2018, 42% of Comcast TV subscribers take Amazon video and they are even heavier SVoD stackers, with the average taking almost three SVoD services on top of their Amazon and Comcast subscriptions (average 3.7 SVoD services). Comcast customers that already take Amazon Prime, have a higher churn propensity than the average Comcast home. Bringing Amazon on-platform and thus increasing convenience for these customers by enabling them to access even more of their content within a single interface could not only see the customers using their X1 boxes more, but ultimately reduce churn for Comcast’s pay TV subscriber base.
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