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High Churn for OTT Services

August 02, 2015

Over-the-top subscribers sample broadband video services then drop them at a sizeable pace, according to a new Parks Associates study. For example, about half of the Hulu Plus viewer base has canceled the service within the past year, which represents about 7% of all OTT households, the research found.

At Netflix, 9% of the consumer base churned off, equivalent to 4% of U.S. broadband homes. Amazon Prime Instant Video's churn rate was about 30% for the past 12 months, according to Park's OTT Video Market Tracker.

Smaller, special-interest OTT services had churn rates exceeding 60%, the Parks analysis revealed. Seven percent of U.S. broadband homes subscribe to an online video service other than Hulu, Amazon Instant Video, or Netflix, said the research firm, which tracks more than 75 OTT services and a dozen more such ventures expected to debut soon. Many of the broadband video options offer ethnic programming or genre content such as health, horror, comedy and kids shows.

From the article "High Churn for OTT Services" by Gary Arlen.

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