This, according to Parks Research, was up from 28% in 2018. Parks Associates’ consumer data notes churn among vMVPDs (virtual multichannel video programming distributors or online pay-TV providers) was 81% in 2019. However, over two-thirds of vMVPD subscribers would find it difficult to give up at least one of their current subscriptions, so providers that offer the right mix of content, personalisation, and ease of use can secure very loyal subscribers.
The most common reason for OTT churn among US broadband households that cancelled at least one OTT service in the past 12 months was the need to cut household expenses. It was followed by being unable to find good programmes to watch and an increase in the price of the service.
According to Steve Nason, research director, Parks Associates, “Overcoming high churn and driving engagement are notable challenges for video service providers, especially as the market becomes more saturated and penetration rates slow.
“OTT services are offering free trials and promotional offers to drive initial service uptake, but these tactics are also leading to sky-high churn rates. To secure long-term subscriber fidelity, providers need to offer more, including original content and a personalised user experience.”
Parks Associates and Swrve will be holding a complimentary webcast on Tuesday, March 17 to discuss driving engagement and reducing churn in saturated OTT markets.