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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

Streaming is heading toward a breaking point with consumers

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Eero’s New Wi-Fi Routers Are Step One In Its Plan To Become A Smart-Home Giant

The early support for Thread may even hint at where Eero is going next. Tom Kerber, an analyst for Parks Associates, notes that one of the main features of Thread is that it’s decentralized. Instead o...

Comcast is totally okay with you not having an Xfinity set-top box

“Pay-TV providers want to retain subscribers, so they want to make sure that you stay inside their ecosystem,” says Brett Sappington, a media analyst at Parks Associates. “If you don’t have a reason t...

Apple earnings could offer clues on streaming performance

Consumers get a year of the streaming service for free with purchase of a new Apple device. Converting those users into paying customers might be tricky, said Steve Nason with Parks Associates....

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