The customer churn rate for OTT services reached 35% in 2019, a 25% acceleration over 2018, according to research released today by Parks Associates.
Churn rate is a measurement of how much of the customer base quits and starts a service over a designated period of time. Parks found that churn was particularly high among virtual MVPD services, measuring 81% in 2019.
“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,” said > said Steve Nason, research director for Parks.
“To secure long-term subscriber fidelity, providers need to offer more, including original content and a personalized user experience,” he added.
Notably, Parks found that economic imperative was the No. 1 driver of OTT customer churn, with the need to cut household expenses listed as the reason more than 30% of OTT customers quit a service. “Couldn’t find programs to watch” was the second biggest reason.
The smarter way to stay on top of the streaming and OTT industry. Sign up below.
Thank you for signing up to Next TV. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.