T - Gross adds and churn point toward streaming's drivers and strivers KeyBanc numbers show

KeyBanc's "Key First Look Data" pores through credit card information to glean insights on memberships and churn at major streaming services, and along the way updates its price target higher on a key name. The bank used the account data to look at gross additions of unique customers and cohort retention profiles over time, to "understand (1) what a successful D2C (direct-to-consumer) service looks like and (2) how industry churn is evolving." KeyBanc is working from the assumption that monthly churn is unsustainable at levels over 4%. Then it plotted share of those gross additions and retention rates to solve for monthly churn. And it used that to benchmark the group to see which services are successfully retaining their customer base. According to KeyBanc's data, industrywide, unique streaming gross adds unsurprisingly fell 63% year-over year in Q3 vs. 2020's pandemic-depth Q3. Gross adds were down 30% quarter-over-quarter; they're "declining and

For further details see:

Gross adds and churn point toward streaming's drivers and strivers, KeyBanc numbers show