A Better Way to Calculate Your Churn Rate

In 2004, Netflix was sued by its shareholders over its reported churn rates. The shareholders argued that Netflix “[used] an improper calculation of the rate that produced an artificially low churn rate.” A judge threw out the case, ruling that there is no single industry-wide definition of churn rate. Clearly, churn rate is a critical metric for any subscription business. But there are also a variety of...DOWNLOAD THE FULL E-BOOK TO LEARN MORE.