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Strategy to minimize churn rate for Indonesian streaming platform
(1) Business Management Program, BBS Undergraduate Program, Binus University, Bekasi,
(2) Business Management Program, BBS Undergraduate Program, Binus University, Bekasi,
(3) Business Management Program, BBS Undergraduate Program, Binus University, Bekasi,
(4) Faculty of Accountancy, Universiti Teknologi MARA (UiTM),
(*) Corresponding Author
Abstract
Vidio, a leading streaming platform in Indonesia, reports over 62 million users, yet only 2.3 million subscribe to its subscription-based video-on-demand service. Recent data indicate that only 15% of subscribers renew, resulting in an 85% churn rate. This showed that there is a problem in customer loyalty because they didn’t renew their subscriptions. To overcome this, the aim of this study was to examine factors that can increase customer loyalty that in turn will reduce churn rate. Quantitative method was applied in this study to examine relationship between Collaborative Innovation and Perceived Ease of use towards Willingness to Subscribe and Customer Loyalty. This study analysed 112 Vidio users using structural equation modelling-partial least squares (SEM-PLS). The results demonstrate that Collaborative Innovation and Perceived Ease of Use significantly enhance Willingness to Subscribe. Streaming companies can evaluate their strategies by increasing collaborative innovation with other brands and evaluate the user friendliness or ease of use of their apps to increase customers’ willingness to subscribe and to continue their subscribes. These findings suggest that optimising Collaborative Innovation and Perceived Ease of Use could increase customer loyalty that in turn can reduce churn rate.
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DOI: https://doi.org/10.24123/mabis.v25i3.1158
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This work is licensed under a Creative Commons Attribution 4.0 International License. ISSN: 1412-3789. e-ISSN: 2477-1783.
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