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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

Disney's 3 streaming services jumped into the US top 5, researcher says

Disney's bumper launch of Disney Plus in the last year has helped all three of the company's streaming services -- Hulu, Disney Plus and ESPN Plus -- to rank in the top-five most popular US streaming-...

More than 200 OTT services active in the U.S. market, research group says

Illustrating the insurgent competitive pressure being faced by incumbent pay TV operators, Parks Associates released a report today suggesting that there are more than 200 OTT services currently opera...

Will the box office ever come back?

The pandemic's stay-at-home habits and the rise of streaming have conspired to create a strong appetite for watching new movie releases at home instead of in theaters. Parks Associates research indica...

Streaming wars will force media companies to choose between pricey subscriptions and ads

Parks Associates, a research firm that tracks the connected home, found in a recent survey that one-third of U.S. broadband households use a free, ad-based streaming service, up from 24% a year earlie...

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