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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.

Previously In The News

Over The Top Services Outpace Pay TV

According to a recent Parks Associates survey, reported by Joseph Palenchar, a total of 57% of U.S. broadband households subscribe to an over-the-top (OTT) video service (streaming of video content...

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New digital/over-the-top video consumers want a wide number of choices to consider when it comes to how many devices they can use. But is that enough for OTT platforms to succeed? Parks Associate...

For Some Of Us, Pay Services Are A Steal

Parks Associates has produced a new report that says 6% of all broadband-capable households make use of a streaming video service paid for by someone who doesn’t live there, and 20% of streaming vi...

Nearly 80% of Smart-TV Owners Are Regular App Users

New industry research from Parks Associates shows app developers are targeting the smart TV platform as the next significant growth area as nearly 80 per cent of smart-TV owners regularly use apps....

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