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On a Netflix free trial? A third of you will likely pay up

Almost one out of three people who use a free trial to try out a streaming video service end up subscribing, researcher Parks Associates said Monday.

That "sizeable portion" of trial users dwarfs the amount of people who abuse free try-outs, Parks senior analyst Glenn Hower said.

"There is a potential for free trial abuse, but only roughly 1 percent of consumers are 'serial trialers,'" he said. "Most consumers use trials for their intended purpose of trying out a service before deciding whether or not to continue as a paid subscriber."

Services, such as Hulu, Netflix and live-TV streamers like Sling TV, often offer a free period, one of the consumer-friendly patterns that have become standard for online video competitors -- and have made it easier for people get a sense of life as a cord-cutter. Traditional TV providers like cable and satellite have grappled with dwindling customer growth as more people opt for online alternatives.

From the article "On a Netflix free trial? A third of you will likely pay up" by Joan E. Solsman.

Previously In The News

As Fire TV passes 30M users, Amazon execs eye more voice integrations and global expansion

More and more people are watching TV and movies with over-the-top devices. Streaming device ownership spiked from six percent of U.S. broadband households in 2010 to almost 40 percent last year, accor...

Streaming TV Is Alphabet’s ‘One That Got Away’

Google’s Chromecast streaming-TV device didn’t lose ground, but given that it’s only utilized as a streaming TV device by 17% of streaming video viewers — despite launching in 2013 with considerably l...

Jeffrey Katzenberg’s Quibi Is Ready to Launch, but Will Viewers Bite?

There’s no doubt people will check out Quibi, particularly with stay-at-home directives set to run through the end of April. “America right now is a captive audience starved for something to do,” says...

Apple’s Video Streaming Plans: Key Open Questions

There were 221 active over-the-top (OTT) services in the US in 2018, up from 199 in 2017, per Parks Associates. And this figure is slated to increase as Disney, WarnerMedia, NBCUniversal, launch their...

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