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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

Amazon & Roku Control Almost 70% of The US Streaming Player Market

We have known for some time now that Roku and Amazon have dominated the United States streaming market. Now according to Parks Associates Roku and Amazon now control almost 70% of the market. This lea...

DirecTV Wants To Be The Next Online Substitute For Cable

And plenty of people never signed up for a $100 TV bundle to begin with. Research firm SNL Kagan estimates that about 14.4 million households pay for internet but not TV. AT&T sees the potential marke...

Roku is the Most Owned Set-Top Box with Cord Cutters, But the Apple TV & Fire TV See Strong Growth

However, this is a noticeable change from our summer 2016 survey that showed Roku with over 70% of the market share, the Fire TV at just over 33%, and the Apple TV at just 18%. (Note: We did allow our...

Revenge of the Antenna

The percentage of broadband-connected households using antenna-delivered broadcast TV has jumped from 9 percent to 15 percent over the past three years. And the percentage getting pay-TV service has d...

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