• Central & East Europe
  • Features

Broadband TV News

Independent. Since 2003

  • Home
  • Newsline
    • Platforms
      • Cable
      • Connected TV
      • IPTV
      • Satellite
      • Terrestrial
    • Technology
    • HDTV
    • Channels
    • On Demand/VOD
    • Distribution
    • Central & East Europe
    • Event Coverage
      • Calendar of Events
    • Regulation/Legal
    • Marketing
    • Columns
      • Briel On
      • Chris Dziadul Reports
      • Clover’s Week
    • People
    • Finance
  • Resources
    • White Papers
    • Download Presentations
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • About
    • Contacts
    • Our Privacy Policy – Terms and Conditions
    • Editorial Calendar
    • RSS & Social Networking
    • Mobile
    • Logos and Pictures
  • Advertise
    • Media Info
    • Hosted Events
    • Roundtable Video
    • Roundup Video
    • Mechanical Data
    • Terms & Conditions
  • Subscribe

OTT churn-rate in US homes is 19%

February 2, 2017 09.48 Europe/London By Broadband TV News Correspondent

The churn rate for OTT video services is 19% of US broadband households, indicating roughly one in five households have cancelled an OTT service in the past 12 months.

The figure is reveadled in Parks Associates’ OTT Video Market Tracker service, which notes that the overall churn rate for OTT services has been stable for the past year, with top services Netflix, Amazon, and Hulu all reducing their churn rates. At the end of 2015, 20% of US broadband households had cancelled at least one OTT video service in the past 12 months.

“The churn rate has held steady, with one-in-five broadband households canceling an OTT video service in the past year,” said Brett Sappington, senior director of research, Parks Associates.

“These are not free trials but instances where consumers are spending real money to try out new OTT services. One-third of households that currently subscribe to an OTT video service have cancelled one or more services in the past year, which shows that there is quite a bit of experimentation occurring right now.”

The OTT Video Market Tracker finds that households with OTT video subscriptions increased their spending from an average of $3.71 per month in 2012 to $7.95 in 2016. At the same time, spending on physical media purchases and rentals declined from an average of $15 per month to $8 per month and spending on digital transactional video declined from an average of $2.42 per month to $1.42 per month.

“On average, spending on subscription OTT video services now accounts for 85% of all household spending on Internet video,” said Glenn Hower, senior analyst, Parks Associates.

“The key to success in the long term will be retention. Consumers are experimenting with different OTT services, and many providers incorporate no-contract, cancel-anytime models to remove barriers to entry and to entice consumers to try new services free of obligations.”

Parks Associates notes that churn is lowest among the top three most established services (Netflix, Amazon, and Hulu), and these providers are in a race to add new content and services or to match each other in new features to prevent any migration of their subscribers to a competitor.

For example, Hulu recently announced it would offer its users the ability to download videos to watch offline, such as during a flight. Amazon began the trend for downloadable content in July 2016, and Netflix followed suit in November.

“These services have worked to establish core customer bases, and the inertia of these core groups provides an important baseline of ongoing revenues,” Sappington said.

“They continue to refine or add to their offerings so that subscribers will continue to see new value in the service, providing ongoing reasons to remain a subscriber.”

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Newsline, OTT, Research Tagged With: Amazon, Hulu, Netflix, OTT Video Market Tracker, Parks Associates, US Edited: February 2, 2017 09:48

Latest News

  • Akamai intelligence services integrated into Plume smart home bundle
  • Piracy: Most Germans unaware of hidden dangers
  • Discovery and TIM launch discovery+ in Italy
  • Court documents reveal cost of joining Apple TV platform
  • Anti-piracy memorandum extended in Russia

White Paper

White Paper: An approach to implementing HbbTV on Android TV by Zattoo

By Broadband TV News Correspondent

HbbTV’s self stated goal is to “harmonize the broadcast, IPTV, and broadband delivery of entertainment to the end consumer through connected TVs and set-top boxes”.

Most Read

  • Court documents reveal cost of joining Apple TV platform
    Court documents reveal cost of joining Apple TV platform
  • WarnerMedia announces International HBO Max launch team
    WarnerMedia announces International HBO Max launch team
  • United Group/Telekom Srbija dispute involves Telenor
    United Group/Telekom Srbija dispute involves Telenor
  • Netflix ‘instant’ play goes global
    Netflix ‘instant’ play goes global
  • Discovery+ goes live in the UK
    Discovery+ goes live in the UK

Watch Video

About Us

Broadband TV News is the Industry’s No.1 Information Provider bringing news, analysis and comment on the delivery of digital television, around Europe and the World.

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Editions

  • Central & East Europe
  • Channels
  • Columns
  • Features
  • White Papers

Subscribe

Join over 40,000 readers to our Daily and Weekly emails. Complete the simple form to get the latest issue delivered direct to your inbox.

Click Here

Advertise with Broadband TV News

Broadband TV News offers a range of commercial possibilities from banner advertising to white paper hosting. Keep your brand at the front of buyer's minds.

Contact: Chris Griffin Commercial Director Tel: +44 7590 522475

Connect with Us

 

Copyright © 2021 Broadband TV News LLP · Log in

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OK