Providing Market Intelligence for 40 Years

In The News

A Challenge For Video Streamers Will Be Keeping Subscribers

A Parks Associates analysis reported that SVOD churn rate dropped from 46% in third quarter 2019 to 38% in third quarter 2020. Among recent launches, the churn rate of Disney+ was at 13%, and HBO Max, Apple TV+, and Peacock all had churn rates at around 20%. The more established Netflix, Amazon Prime Video and Hulu all had churn rates significantly below the industry average. Steve Nason, the Research Director at Parks Associates, notes with COVID-19, and consumers home bound, they had more time to watch and evaluate SVOD services over a longer period of time. During that time SVOD providers heavily promoted their services including free trials.

Nason also points out that with all the new services launched, SVOD may reach a tipping point in 2021. Cord cutters who cancelled their monthly pay-TV subscription and opted for SVOD providers to save money, may soon find out that by stacking a number of streaming services they will be approaching the same monthly fees as their pay-TV subscription. Consequently, paying for too many SVOD services could result in an increase with churn rates.

Nason expects long running video providers Netflix, Hulu and Amazon Prime Video along with Disney+ that have built brand affinity and brand equity, will be less impacted by cancellations than recent launches. In response, expect SVOD providers to offer more exclusive content and promos to maintain (and grow) subscribers. Additionally, Nason expects no major SVOD launches in the near future, beyond the already announced Paramount+ and recently launched Discovery+, for services that will truly threaten the top of the subscription OTT hierarchy.

From the article, "A Challenge For Video Streamers Will Be Keeping Subscribers" by Brad Adgate.  

Previously In The News

US FCC Not To Investigate Netflix Throttling Of Some Mobile Consumers

That dichotomy could also spill into an ongoing debate in Washington over how strictly to regulate the broadband companies over customer privacy. "This is outside the Open Internet", Wheeler said. Wel...

Facebook Says, Unlike Netflix, It Does Not Degrade Its Video For Mobile

More than half of all US households with broadband subscribe to Netflix, according to Parks Associates. "I predicted this would occur sooner or later", he continued, noting that subjecting all Inte...

Netflix Throttling Did Not Break Rules - FCC

Last week, Netflix acknowledged that it has indeed downgraded video streaming over some mobile networks. "We're at a point where there's so much video traffic going across the Internet", said Glenn...

AT&T Boosts Data Caps For Home Broadband Plans

"The unlimited data plan is likely for the uber-data users that far exceed their data allowance each month", said Parks Associates, in a research note. The controversial approach to home internet limi...

Phone:
972-490-1113
Mailing Address:
2301 West Plano Parkway, Suite 210, Plano, TX 75075
Expertise
Smart Home: Management and Safety Consumer Electronics Connected Health and Wellness Connectivity and Mobility Small-to-medium Business (SMB) MDU
Services
Research Memberships Visibility Memberships Streaming Video Tracker Smart Home and Security Tracker Broadband Market Tracker Channel Analytics
Events
CONNECTIONS™ CONNECTIONS™ Summit/CES Smart Energy Summit Connected Health Summit Future Of Video Smart Spaces
Resources
Press Releases Analyst Blog Parks in the News
About Us
Overview Team Contact Us
Store
View Your Cart

Follow:

© 2023-2026 Parks Associates. All Rights Reserved. Privacy Policy

Design & Developed By Agency Partner Interactive