Introduction Consumers have more than 2,000 streaming services to choose from, thus leading to increased subscriber churn. However, focusing on churn alone misses the point, as churn is a symptom of a deeper, more critical issue. T o reduce it, the industry should concentrate on building loyalty. Our latest report, “Streaming’s Loyalty Crisis,” addresses churn and loyalty in streaming by analyzing the regularity of streaming app usage across the Samsung Smart TV footprint of more than 74 million TVs during the full 12- month period of 2024. Samsung's unparalleled first party data helps you understand exactly how your target audience is watching their favorite content and helps you achieve your reach and frequency goals. Source: Samsung Proprietary Smart TV Data, U.S. Full Year 2024 samsungads.com Get in touch at adsales@samsung.com Streaming’s Loyalty Crisis While most in the industry are concerned with subscription status, we focus on app usage, as that ultimately determines whether someone unsubscribes. On average, for every active user an app has, there are 7 users who have churned out in the prior 12 months. Churn is heavily influenced by increasing costs across undifferentiated value propositions. TV starts with streaming Nearly three-quarters of all TV time is now streamed. But where Americans’ linear behavior was consistent and predictable, their streaming behavior is volatile and unreliable. Streaming is content- oriented, and viewers seek out the latest show with little loyalty to the apps the shows appear on. Streaming App churn continues to increase Subscription ≠ Usage. Share of time 71% Streaming 29% Linear samsungads.com Get in touch at adsales@samsung.com Source: Samsung Proprietary Smart TV Data, U.S. Full Year 2024 samsungads.com Get in touch at adsales@samsung.com App loyalty: A new segmentation for new behaviors 66%Super Loyals Active in an App for 10–12 Months 7%Semi Loyals Active in an App for 7–9 Months 15%Non Loyals Active in an App for 1–6 Months 11%Non Streamers 7.5Total number of apps used 2.7Number of apps loyal to 4 hrs 4 mins Time spent with TV per day Loyalty is not rare, but it is scarce The majority of Samsung Smart TV viewers are Super Loyal, however, that loyalty is limited. Super Loyal viewers use nearly 8 apps but are loyal to fewer than 3. Super Loyals account for the majority of streamed viewing, making them key to a streaming app’s success. Advertisers should drive preference among this group by focusing on brand-building and differentiation using a combination of native and CTV ads to deliver the right message at the right time. Share of streaming hours 97% 2% 1% Super Loyals Semi Loyals Non Loyals Source: Samsung Proprietary Smart TV Data, U.S. Full Year 2024 66% 7% 15% 11% And while focusing on loyalty is key, so is choosing the right advertising partner to help turn loyalty from vision into reality. By working with Samsung Ads, brands can unlock scaled reach, and a deep understanding of audience behavior through first-party insights, turning viewers into Super Loyals from the start. samsungads.com Get in touch at adsales@samsung.com Rather than focus on churn, it’s time to think about loyalty.