Free Trials Are Dying (copy 01)

Free Trials Are Dying

October 20, 2020

October 20, 2020

This week, we learned that Netflix plans to end its rather generous 30-day free trial. And before you ask: No, the company is not shifting to a shorter free trial. It's dropping the free trial altogether. This comes amidst what seems to be a growing and unfortunate trend in the cord-cutting industry. Free trials appear to be dying, and there's not much we can do about it.This week, we'll explore other services that dropped their free trials, and why those free trial offers may be coming to an end. 

Streamer's Spotlight: It's Not Your Imagination - Free Trials ARE Dying

There was a fair bit of suprise this week when Netflix announced that it's officially ending its 30-day free trial offer. The company claims phase-out was already planned, but that certainly doesn't mute the impact. But that's just the thing: IT shouldn't really surprise anyone. There's been an increasing trend in the streaming industry to end free trials that's primarily rooted in user behavior. 

Netflix Isn't Alone

First of all, Netflix isn't alone in dropping its free trial offer. Disney dropped the free trial offer for its Disney+ service just a few months ago and less than a year after launching its new service. Other services that shed their free trials in the past 12 months include Disney's sports-streaming option Disney+, and the sports-centric streamer, DAZN. Notably, DAZN only dropped its free trial from the US and Canadian markets, not its other markets. 

Why Are Companies Dropping Free Trials?

There are two reasons, one obvious, one less obvious. The more obvious reason that companies are dropping free trials is that is increases revenue. Many subscribers will pick up a service, binge watch content they've been aching to see, and then drop that service before the free trial ends. Those subscribers might sign up again later, but they'll game the system and sign up with a different email address and payment method. Companies like Netflix likely lose millions of dollars each year in potential revenue from these free trial hoppers.

The other issue, which is similar in nature, relates to sports content. Services like ESPN+ and DAZN offer sports content that doesn't require cable packages. They also often host major one-time events, like the Lomachenko vs Lopez fight on ESPN this past weekend. Many people hop onto these services via free trial, watch what they want, then cancel. Again, many do the same thing for major events by signing up with different email addresses and payment methods. 

What Are Companies Offering As Alternatives?

Sometimes nothing at all. For example, ESPN+ and Disney+ simply dropped the free trial. Sometimes, companies are offering customers a bone. Netflix, conveniently, introduced its free library before announcing it was dropping the the free trial. Peacock is perhaps a good example of what we will see in the future: a large, free, ad-supported library, but no free trial at all. 

Can Consumers Do Anything About It?

Beyond kvetching on social media, not really. Our own behavior is biting us in the rear. But at least the trend for free, ad-supported library is becoming a thing. That's a scheme that's likely going to dominate the market in the coming years as free trials fade.

This Week's Streaming Guide

1. 'The Goldbergs' Are Back for Season 8

TV's favorite Jewish family returns for more antics in Season 8. Watch live on ABC this Wednesday at 8 PM EST. 

3. Netflix Adaptation of 'The Queen's Gambit' Streaming Friday

Based on the novel, the Netflix mini-series by the same name brings all the chess moves to life this Thursday. -

3. Borat Comes to Amazon Prime Video this Friday

The ridiculously long title:

Borat Subsequent Moviefilm: Delivery of Prodigious Bribe to American Regime for Make Benefit Once Glorious Nation of Kazakhstan

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4. Gold-Digging Drama Returns on Discovery Channel

Parker Schnobel and Tony Beets go head to head yet again in a chaotic hunt for gold. Watch the Season 9 premiere this Friday at  8 PM EST. 

News and Industry Developments

1. Is Netflix Preparing to Raise Prices?

Signs may be pointing to a price increase in the US. -

2. Disney Is Now a Streaming Company

A recent executive-level shakeup indicates Disney is betting big on streaming. -

3. AT&T Launches Streaming Service for In-Car Wi-Fi

AT&T introduced its Ride streaming service that's only available for those who purchase its in-car Wi-Fi hotspot services. -

4. FuboTV May Offer Sports Betting

However, availability would be limited considering sports betting is only legal in 18 US states. -

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