Study: Netflix Has Lowest Churn Rate Among OTT Services

When it comes to acquiring subscribers and keeping them, Netflix has found the right recipe. 

Netflix is by far the largest subscription OTT video service provider, with 52% of all U.S. broadband homes taking it by the end of last year, but it also enjoys the lowest churn rate as a percentage of its total sub base, Parks Research found in a new study focused on the over-the-top video sector.

In the past 12 months, just 5% of U.S. broadband homes cancelled their Netflix account (up from 4% in the firm’s Q2 2015 study), including those that left after the end of a trial period, Parks Research said, noting that the figure represents 9% of the provider’s current sub base.

The study also found that 5% of U.S. broadband homes also unsubscribed from Amazon Prime in 2015, representing 19% of those who claimed to have churned off the offering.

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