Welcome to Subscriptions Weekly! The subscription world is always on the move, as companies refine their strategies to boost retention, reduce churn, and adapt to shifting consumer expectations. This week, we dive into Netflix’s high return rate among canceled subscribers, the growing success of streaming bundles, and the challenge of managing multiple subscriptions.

Netflix sees high subscriber return rates after cancellations

Netflix continues to thrive in the streaming space, with data showing that 50% of subscribers who canceled in 2023 returned within six months, and 61% rejoined within a year. While the industry average sees only 34% of canceled subscribers returning within six months, Netflix’s ability to win back customers stands out. (More insights on subscription trends can be found in our latest industry report).

Why does this matter?

  • Netflix’s investment in original content and global expansion keeps users coming back.

  •  Despite price hikes, its low churn rate (2%) reinforces its position as a dominant player.

  •  A strong brand and improved content discovery contribute to long-term subscriber loyalty.

Read more about Netflix’s churn and return rates. 

Disney+, Hulu, and Max bundle retention surpasses Netflix in early engagement

Streaming service bundles are proving highly effective at retaining new subscribers. The recently launched Disney+, Hulu, and Max bundle has achieved an 80% retention rate after three months, outperforming Netflix in the same period for new subscriber retention.

What’s behind the bundle’s success?

  • For customers: Cost savings—reducing subscription fatigue through a diverse content library spanning family entertainment, reality shows, and blockbuster movies

  • For companies: More predictable revenue and sustainable growth

This trend suggests that bundling services could be the key to combating churn and increasing lifetime value for subscription businesses.

Read more about the Disney-Hulu-Max bundle. 

Subscription overload: Are consumers drowning in too many services?

With the average US consumer now managing 8.2 subscription services and spending an estimated $1,416 annually, many are looking for ways to simplify. A recent survey found that 73% of consumers want a consolidated way to manage subscriptions, yet only 2% currently use a single app for this.

Key challenges consumers face:

  • Difficulty tracking multiple subscriptions and renewal dates

  • Unused services leading to wasted spending

  • Growing frustration with content fragmentation across platforms

As consumers seek streamlined access and fewer payments, bundling brands are stepping in to help. By offering multiple services under one plan—like Disney+, Hulu, and Max—bundles reduce the number of separate subscriptions consumers need to manage, creating a more seamless experience. For businesses, bundling isn’t just about convenience—it’s a proven retention strategy that can lower churn while increasing perceived value for subscribers.

Read more on subscription overload and consumer behavior.

What’s next in subscription models? Key trends shaping the future

From AI-driven personalization to hybrid pricing strategies, the subscription landscape is evolving. Companies are experimenting with new ways to offer value while keeping customers engaged.

What to watch for in 2025:

  • AI-powered recommendations that improve subscriber retention

  • Subscription-based business models expanding beyond streaming and SaaS

  • Pay-as-you-go and usage-based pricing gaining traction

Stay ahead of the curve with the latest insights. 

Navigating loyalty program changes—insights from Recurly’s CMO

Loyalty programs are undergoing significant shifts, forcing brands to rethink how they engage and retain customers. In a recent article, Lina Tonk, our CMO, explores the turbulence surrounding loyalty program adjustments and their impact on businesses and subscribers.

Key takeaways:

  • How loyalty programs are evolving in response to changing consumer behaviors

  • The impact of pricing adjustments on customer retention

  • Strategies to enhance loyalty without increasing churn

Read the full article. 

Subscription sessions: Spring edition—save your seat!

Subscription Sessions is back! Join top industry experts and Recurly’s product team for a power-packed virtual event on subscription growth.

  •  April 16, 2025 | 10 AM BST / 10 AM PST

  • One day. Five sessions. Tons of insights.

  • Speakers from Conde Nast, Alaska Airlines, FabFitFun, The Guardian, CNBC,  Cinemark, and more

What’s in store?

  • The biggest trends shaping subscriptions

  • Smarter retention and engagement strategies

  • Payments, fraud, and revenue recovery insights

Seats are filling fast, save your spot now!

The 2025 State of Subscriptions: your must-read report

Our latest industry report is packed with fresh data, real-world benchmarks, and proven strategies to drive retention and revenue in an ever-evolving market.

What’s inside?

  •  Surprising industry stats that reveal where subscriptions are headed

  •  The smartest ways to keep customers hooked long-term

  •  Insider tips from brands that have cracked the retention code

The subscription playbook you need—get your copy now!