Wednesday, August 05, 2015

HBO CEO Says Less Than 1% of Subs Switching to HBO Now

In the past 12 months, 4% of U.S. broadband households have canceled their Netflix service, representing nearly 9% of Netflix’s current 42 million domestic subscriber base. By comparison, 7% have canceled their Hulu Plus subscription within the past 12 months, a figure that represents approximately one-half of Hulu Plus’s current 9 million sub base, according to Parks Associates.

“To shed a number of subscribers equal to half or more of your current subscriber base is a huge problem,” Brett Sappington, director of research for Parks Associates, said in a statement. “Customer acquisition costs for an OTT video service are relatively low, particularly compared to pay TV, but OTT video services will eventually have to capture and retain their customer bases over time in order to survive in the long term.”

Indeed, 7% of U.S. broadband households subscribe to an online video service other than Hulu, Amazon Prime Instant Video or Netflix. The number of people canceling one or more of these services over the past year represents 60% of those who subscribe currently.

From the article "HBO CEO Says Less Than 1% of Subs Switching to HBO Now" by Erik Gruenwedel.

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