Report: Increased OTT Video Choice Equals Higher Churn

The rise of over-the-top video has been driven by low cost and elimination of long-term contracts. With barriers to sampling gone, the churn rate (the percentage of subscribers who cut ties with the service during a given time period)among SVOD services is increasing.

A new consumer survey from Juniper Research found that increased churn rates are being faced by video streaming services such as Amazon Prime (-2.9%) and HBO Now (-19.2%) in key markets such as the United Kingdom and the United States.

Except for Netflix.

The subscription streaming video pioneer/behemoth outperformed its rivals; showing positive adoption rates in both the U.S. and across the pond (6.3% and 7.7%), undermining the notion services are discontinued after a trial month.

Juniper found that consumers are burdened with numerous SVOD subscriptions. For example, the survey highlighted that Chinese and U.S. survey respondents acquire an average of three subscriptions each, in comparison to 2.5 in the U.K.

“The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers,” Lauren Foye, research author at Juniper, said in a statement.

Foye said that as subs reduce or switch SVOD subscriptions, curation of content is becoming important, with the need to engage consumers as critical.

She said the collaboration between OTTs and traditional pay-TV platforms is key to a symbiotic relationship between new and traditional distribution models. For example, Sky hosting Netflix content via its Q platform; a slick and refined user experience.

The survey identified the importance of broadcast. More than 40% of U.K. survey respondents said that they streamed live sports, yet only 6% of these individuals watch sports through online channels alone; consequently, streamers continue to utilize TV broadcast.

 

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