June 4, 2021
Parks Associates’ latest research of 10,000 U.S. broadband households found 82% of homes have at least one over-the-top video service subscription, up from 76% in the first quarter of 2020.
“With OTT adoption so high, providers are exploring new strategies, including expanded IP and AI-powered enhancements, to stay competitive,” Steve Nason, research director of Parks Associates, said in a statement.
Parks is holding two virtual sessions as part of its fourth annual Future of Video: OTT, Pay TV, and Digital Media series June 9 to explore customer adoption and churn, strategies for maintaining and retaining subscribers, and best practices in data-driven decision-making for OTT services.
“Service stacking is trending up, with 46% of U.S. broadband households subscribing to four or more OTT services,” Matt Smith, VP of business development at Symphony MediaAI, said in a statement. “Forward-looking OTT providers are wondering when, not if, the tipping point will come — and they’re turning to predictive AI and other technology to prepare. We look forward to discussing the most effective strategies to mitigate the subscriber churn challenges that the OTT market will inevitably continue to face as consumer behaviors evolve.”
To Scott Handcock, VP of marketing at Plex, preventing churn remains one of the industry’s core challenges.
“Making it easy for consumers to find exactly what they want that speaks to their unique interests [is key],” Handcock said. “Whether it’s a series from a subscription service, live TV, a movie or show for rent or purchase, or ad-supported content, if we can make it an intuitive, personalized, and enjoyable experience, why wouldn’t they stick around?”