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

Sprint Owner Softbank To Buy ARM For IoT In Big Post-Brexit Deal

In particular, Cisco said that the new products target distributed and mobile businesses that may need full coverage for headquarters, branch offices, or even employees connecting to the network from...

Three women are the wits behind Google Assistant's personality

The Assistant audio-records every user request, which has raised privacy concerns. Users can delete their data stored by Google, a process that can take up to six months for the data to be completely...

Is Your Digital Health Strategy Thriving, Surviving Or Non-Existent?

More people than ever before are using technology to monitor and track their own health or the health of a loved one. According to the global market research firm Parks Associates, the fitness tracker...

How Businesses Can Use VR to Win the Race to Consumers’ Hearts (and Homes)

Despite the enthusiasm for VR in the popular consciousness, however, it has not yet reached must-have status in the consumer electronics sector. A Parks Associates survey found that, as of May 2016, o...

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
Store
View Your Cart
About Us
Overview Team Contact Us Privacy Policy

Follow:

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

Design & Developed By Agency Partner Interactive