Overall Rate of OTT Video Service Cancellation Steady at 18%
Addison, TX, Sept. 11, 2018 ― A Parks Associates research has found that the rate of cancellations for OTT video services among U.S. broadband households has held steady over the past three years at approximately 18%.
The firm examined the unique challenges in addressing subscriber churn in the OTT video service landscape and how providers can make their services invaluable among consumers in the industry during a webcast “OTT Churn and Retention: Increasing Lifetime Subscriber Value" last September 6.
The webcast, sponsored by Swrve, presented strategies for OTT video providers to reduce churn rates and to increase the lifetime value of their subscribers by designing their solutions based on consumer viewing habits and trends.
Webcast presenters included:
- David Browne, Sr. Director of Product Management, Comcast Technology Solutions
- Barry Nolan, CMO, Swrve
- Hunter Sappington, Research Analyst, Parks Associates
The average subscription length for OTT video services is 30 months overall, although the three top services in the market—Netflix, Amazon, and Hulu—have the most stability, while churn rates for other services tend to be more volatile.
“With OTT service penetration starting to plateau at around 65% adoption among U.S. broadband households, the OTT video market is reaching a level of saturation for the services currently available to consumers,” Sappington said. “In an increasingly crowded and competitive marketplace where subscriber acquisition costs are high, this plateau highlights the need for services to focus on retention rather than solely acquisition. Successful services can encourage retention in several ways, such as community building, continuously offering new and fresh content, and improving their user experience.”
During the webcast, the speakers shared their insights on three key topics:
- Strategies video services are using to maximize the lifetime value of their customers
- Factors that make an OTT service irreplaceable among OTT consumers
- The rising trend of households with multiple OTT subscriptions
Additional Parks Associates OTT research:
- More than 85% of U.S. millennials subscribe to at least one OTT video service.
By 2022, more than 265 million households worldwide will have more than 400 million OTT video service subscriptions.
Parks Associates specializes in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.
