Nick: At the risk of sounding like I am serving a heaping hot plate of spam, forgive me, because i really just want to point out that i know there are exceptions to the rule though I agree with your point almost entirely.
I don't mind if you call bullshit on what i am about to say; I would be happy to show you our stats if we ever cross paths. We convert over 40% of trials. About 17% stay with us over a year. Quality, branding, service all do have a serious impact but you are right, that is not the be-all end-all.
We are not a cheap membership either. Best of all we have a seriously low chargeback rate anyone would be proud of, even in mainstream terms.
I don't think the amount or quality of the content is as critical a way to retain as good service and respect for the customers. I once had a conversation with 'Buttman" Stagliano about video cameras because we both had the same new sony. I asked what he thought of the quality and he said "It is ok, but who cares... I made my first million with the Canon. It is more important to deliver what your fans come to expect from you."
I took the lesson to heart.
I think sites like ATK, Homegrown Video, Lightspeed, and a small handful of others do deliver on the promise of content, but the success has much more to do with the level of customer service and consistency that can come to be trusted.
My opinion, albeit a humble one.
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