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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

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Among US broadband households, Parks Associates finds that 72% subscribe to at least one over-the-top (OTT) video service, while 46% subscribe to two or more OTT services. Further, 25% subscribe tothr...

Comcast and Charter face a grim new reality: actual competition

“Across the nation, all sorts of internet service providers have gained two new competitors,” says Kristen Hanich, the research director for Parks Associates, referring to T-Mobile and Verizon. “They...

To Invade Homes, Tech Is Trying to Get in Your Kitchen

Yet the so-called smart kitchen remains a tough sell. With the kitchen often a hub for families and friends, habits there can be hard to change. And many people see the kitchen and mealtimes as a have...

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