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Analyst: High churn for Netflix and other OTT services

August 02, 2015

Findings from market research and consulting company Parks Associates suggest that annual churn rates for OTT entertainment services Netflix, Hulu Plus, and Amazon Prime are a sign of consumers testing new video services.

The firm’s OTT Video Market Tracker reveals high churn rates for many OTT video subscriber services. In the past 12 months, 4 per cent of US broadband households have cancelled their Netflix service, representing nearly 9 per cent of Netflix’s current subscriber base. By comparison, 7 per cent have cancelled their Hulu Plus subscription within the past 12 months, a figure that represents approximately one-half of Hulu Plus’s current subscriber base.

As a group, smaller OTT video services have extremely high churn rates as well. Seven per cent of US broadband households subscribe to an online video service other than Hulu, Amazon Instant Video, or Netflix. The number of people cancelling one or more of these services over the past year represents 60 per cent of those who subscribe currently.

From the article "Analyst: High churn for Netflix and other OTT services."

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