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Lots of people are canceling HBO Now and Amazon Prime, study says

Last month, Parks Associates released new research suggesting cancellation rates for over-the-top services have held steady at about 18% for the past three years.

“With OTT service penetration starting to plateau at around 65% adoption among U.S. broadband households, the OTT video market is reaching a level of saturation for the services currently available to consumers,” said Hunter Sappington, research analyst at Parks, in a statement. “In an increasingly crowded and competitive marketplace where subscriber acquisition costs are high, this plateau highlights the need for services to focus on retention rather than solely acquisition. Successful services can encourage retention in several ways, such as community building, continuously offering new and fresh content, and improving their user experience.”

From the article "Lots of people are canceling HBO Now and Amazon Prime, study says" by Ben Munson.

Previously In The News

Parks Associates: US OTT Adoption Up 12%

The adoption of over-the-top (OTT) video services among US broadband households has increased by 12% since the third quarter of 2014, according to Parks Associates. The research firm said that both...

Parks: Netflix retains OTT top-spot in the US

“Importantly, all of these services have increased their subscriber base over the past year. The top five OTT services have stayed consistent, primarily through maintaining or growing the massive user...

AT&T kills Plenti loyalty program but touts ongoing Thanks campaign

Parks Associates reported last year that 60% of respondents in a survey valued a rewards program for being a loyal customers, third only to the ability to roll over unused data (66%) and free access t...

Cord-Cutting On The Rise In The US

“Pay TV subscriptions have dropped each year since 2014, falling to 81% of US broadband households in Q3 2016,” said Brett Sappington, senior director of research, Parks Associates. “Several factor...

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