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Netflix, Hulu subscriber churn should be a concern for OTT providers, research firm says

July 29, 2015

Subscription video on demand providers need to keep an eye on the "extremely high" churn rates endemic to the OTT video market segment, a new report from Parks Associates has found. In the past 12 months, 7 percent of U.S. broadband households have cancelled their Hulu Plus subscriptions, a number that represents about half of Hulu's subscriber base.

Netflix (NASDAQ: NFLX) isn't immune to the subscriber decline either: the top SVOD provider saw about 4 percent of broadband households in the U.S. drop their subscriptions. That isn't a severe of a drop as Hulu's; the churn represents only about 9 percent of Netflix's subscriber base, Parks said.

Other OTT services are also showing high churn rates among their subscribers, the firm added.

"The high churn rate for many of these services suggests that consumers are holding onto their Netflix account while experimenting with the wide variety of other video subscription options," said Brett Sappington, director of research at Parks.

From the article "Netflix, Hulu subscriber churn should be a concern for OTT providers, research firm says" by Samantha Bookman.

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