Loyalty is the name of the game for places like Netflix and Hulu going forward, Callahan says. “It’s much easier to keep a customer than acquire a new one,” he explains.

High turnover has been one of Hulu’s nagging problems. According to research by Parks Associates earlier this year, around 50% of Hulu’s subscriber base had canceled their subscriptions in the last 12 months. Netflix’s turnover was only 9%.

From the article "What Hulu needs to beat Netflix" by Nathan McAlone.

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