Isn't usage more of a sub-category of retention? Everything you described about the importance of usage sounds like basically the same thing as preventing cancellations, so I don't see how usage and retention are considered different things in terms of profit generation. If you have growth and retention, isn't usage superfluous?
Great point! Arguably retention is a sub category of growth. Retaining customers only comes if you're growing a customer base. Usage is more about actively getting people to open an app and make it a part of their day-to-day. This helps lead to less churn, and can arguably lead to more growth (recommending to friends, creating a second account when moving out, etc). But figuring out how to actually get people to engage with a product day in and day out, which leads to more retention, is the strategic part of divvying up titles.
I might only use Disney+ once a week but not cancel because I like having it once a week. But that comes with a price cap (how much do I really want to spend on something I use less than 15% of the week) and it means my attention is elsewhere. If use Disney+ every day, it makes the streaming service a necessity and I'm more likely to feel okay about price increases, and keeps me engaged with Disney's brands.
Plus, if I'm using it daily, this might lead me to other shows, and that can lead to more time on the app, but also more spending on consumer products or parks, too.
Isn't usage more of a sub-category of retention? Everything you described about the importance of usage sounds like basically the same thing as preventing cancellations, so I don't see how usage and retention are considered different things in terms of profit generation. If you have growth and retention, isn't usage superfluous?
Great point! Arguably retention is a sub category of growth. Retaining customers only comes if you're growing a customer base. Usage is more about actively getting people to open an app and make it a part of their day-to-day. This helps lead to less churn, and can arguably lead to more growth (recommending to friends, creating a second account when moving out, etc). But figuring out how to actually get people to engage with a product day in and day out, which leads to more retention, is the strategic part of divvying up titles.
I might only use Disney+ once a week but not cancel because I like having it once a week. But that comes with a price cap (how much do I really want to spend on something I use less than 15% of the week) and it means my attention is elsewhere. If use Disney+ every day, it makes the streaming service a necessity and I'm more likely to feel okay about price increases, and keeps me engaged with Disney's brands.
Plus, if I'm using it daily, this might lead me to other shows, and that can lead to more time on the app, but also more spending on consumer products or parks, too.