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OTT Services Seeing High Churn Rates

July 29, 2015

As consumers decide what they want out of their Over-the-Top (OTT) video experience, the industry is seeing some fairly high churn rates. While typical for subscription-based industries, some companies are managing better than others.

According to Parks Associates, 4% of U.S. broadband services have canceled their Netflix service over the past 12 months, representing about 9% of its overall subscriber base. Comparatively, 7% of those households have canceled Hulu Plus, representing about half of its subscriber base.

“The surprising element for us was Hulu Plus,” says Brett Sappington, director of research at Parks Associates. “To shed a number of subscribers equal to half or more of your current subscriber base is a huge problem.”

From the article "OTT Services Seeing High Churn Rates" by Aaron Baar.

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