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How Apple, Disney, AT&T, and Netflix to keep streaming subscribers?

(Reuters) – Apple Inc. ‘ s video-streaming service that made its debut on Friday, it came with a $2-billion of its original programming, a function is considered to be the most powerful magnet for new customers.

FILE PHOTO: players and visitors to rest, to take up the position on Netflix at Europe’s leading digital and games, stock market Game, in which you will get acquainted with the latest trends in the computer gaming scene in Cologne, Germany, August 21, 2019 at the latest. REUTERS/Wolfgang rattay/File Photo

But for the Apple TV and its competitors, one of which is the monthly plans are cheaper than traditional cable packages, with the love of the viewers, it is a huge challenge.

Streaming providers such as Netflix Inc., Apple-TV, the Walt Disney Co., Disney+ AT&T, HBO-Max, the point is flexibility: you can sign up to watch a new tv show, and cancel it when you want it.

In addition to spending millions of dollars on a library of content, media companies are taking the help of the programming, promotion, and other strategies, in order to prevent the cancellation, or churn, in industry parlance, and the retention of subscribers that are expensive to acquire and easy to lose.

“Churning out a service that is ever meant to find out the telephone number of the cable operator to navigate through an automated menu, waiting on hold,” said Rich Greenfield, an analyst at LightShed ners. “We now live in a world where, with just a few clicks of your finger, on your phone, and all of the friction caused by the cancellation, it is gone.”

Now that is the only streaming provider that makes use of a multi-year move up to the lock-in of subscribers. In August, the company offered to both new and existing members of the D23 fan club is a yearly fee of $47 for a period of up to three years for Disney to+ – 33% discount off the standard price.

Disney has the advantage of making content for children, watch the same movies and TV shows over and over again. Netflix, HBO, Max, and the Apple TV will have to be invested in children’s content to keep the subscribers will cancel as they have to wait for the next original, adult oriented show.

In May, Netflix has made a rare acquisition of a children’s media brand, StoryBots, for an undisclosed amount of money. In July, it announced three new series targeting pre-schoolers and pre-schoolers.

The Apple TV’s programming consists of two series of Sesame Workshop, a non-profit, which makes it very interesting. HBO / Max will be broadcast in the new “Sesame Street” episodes, and most of them from the library.

Streamers are also strategic about the number and timing of new releases.

“There needs to be a cadence to the release of the slate, so there is something you would like to see it come up in the course of the year,” said Fitch ratings analyst Patrice Cucinello.

HBO up in the air with a new episode of the original series each week For the majority of Apple’s TV drama series, including “The Morning Show”, and “See” Apple releases three episodes at a time, followed by one per week. Disney+ it will reveal you one episode each week for a new series, such as “Loki.”

Hulu, for years, has been releasing weekly episodes of the original series, including “The Handmaid’s Tale” and “Castle Rock.” CBS Corp., CBS All Access, the other is the streaming pioneer, working with the press, most original shows of the week.

CBS All Access, and his brother, now it’s Showtime in the campaigns to win back subscribers who cancel the operation, according to Marc DeBevoise, chief executive of CBS Interactive. Services contact using the viewers to a show they used to watch back in the air, as well as provide for a reduced rate.

Showtime has been in active discussions with Amazon Inc., Apple, and Roku Inc. over the creation of bundles of two or three departments, said a source familiar with the premium cable and satellite TELEVISION network. The combined services, with a rich and varied menu, and you can replace the cable bundle, as a one-stop-shop for programming.

HBO, Max, and Netflix, are investing in a broad swath of the content. Netflix paid about $15 billion in cash for the content of 2019, and AT&T will spend $4 billion over the next three years, with the construction of the COLLEGE up to Max.

Losing subscribers will be able to charge more.

“If I were these companies, I would have to plaster the word ‘churn’, it is in everyone’s offices,” said Green. Churn will kill you.”

Report by Helen Coster; Editing by Richard Chang

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