Netflix, Disney+ and HBO Max have all done away with free trials recently and the moves call into question how much longer the sneak peek will remain a standard user acquisition tool.
During a panel discussion today at the Stream TV Growth Summit, nScreenMedia analyst Colin Dixon put that question to a group of executives from streaming services including YouTube TV and Discovery.
Esther Ahn, head of user experience at YouTube TV, said she still believes free trials are key in promoting transparency and authenticity in the eyes of consumers. She said it’s still important for people to be able to experience a product before they sign up.
“I believe in that and hopefully we can continue with it,” she said.
RELATED: Netflix ends free trials in the U.S.
Michael Bishara, group senior vice president and general manager for direct-to-consumer at Discovery, has a major new streaming service launch on his hands with Discovery+, which went live on Jan. 4. He said free trials are still “very, very important” and suggested that the tool will still be around for a long time.
“You’re trying to expose [consumers] to the depth and breadth of content, the capabilities, the features…and it’s a very seamless way to onboard a consumer and minimize the friction,” he said.
Gary Schanman, president and founder of GB Monday, an advisory firm, said it’s easier for major studios like Disney – which owns several huge IP brands like Marvel, Star Wars and Pixar – since consumers clearly know what they’re going to get.
However, he said services like YouTube TV or Discovery, which are either still new to consumers or new to the market, it’s still crucial for consumers to get a good look before they buy.
NBCUniversal’s Peacock and some other streaming services still retain free trials but in 2020, Disney+, Netflix and HBO Max all dropped free trials for U.S. consumers.