Monday, August 03, 2015

This Graph May Explain Why Cable Companies Aren’t Rushing To Get Into Standalone Streaming

With pay-TV subscription numbers dropping as people turn to online sources for their entertainment and news, it might seem sensidble that the pay-TV giants would jump into the streaming video business. But with the exception of Dish-owned Sling TV, that hasn’t been the case. That might be because consumers appear to be quite fickle about their use of these standalone services.

A recent report from Parks Associates finds a significant level of customer turnover for most streaming, or over the top [OTT], services.

Netflix, which has the highest level of customer loyalty in the group, still saw about 9% of its customers cancel in the last year, according to Parks. The turnover at Amazon Prime cancellations was much higher, at around 30%. Meanwhile, the churn for Hulu’s premium tier (formerly called Hulu Plus) was about half the customer base.

For the smaller services, the turnover rate is up around 60% as customers dip their toes in and out.

From the article "This Graph May Explain Why Cable Companies Aren’t Rushing To Get Into Standalone Streaming" by Chris Morran.

Next: NFL In Talks With Facebook, Other Tech Giants For Thursday Night Football Streaming Rights
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