tve@3108_news 01/09/2015 10:20 Page 7
indings from
market
researcher
Parks Associates
suggest that annual
churn rates for OTT
entertainment
services Netflix,
Hulu Plus, and
Amazon Prime mean
that consumers are 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% of U.S. broadband households have
cancelled their Netflix service, representing
F
these services over the past year represents
60% of those who subscribe currently.
“Through the OTT Video Market Tracker
service, we are tracking the details and
trends of over 75 OTT video services active in
the US market along with another dozen or
so services planning to enter the market
High churn for Netflix
and other OTT services
nearly 9% of Netflix’s current subscriber
base. By comparison, 7% 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 percent of US broadband households
subscribe to an online video service other
than Hulu, Amazon Prime, or Netflix. The
number of people cancelling one or more of
Study: OTT
complements, not
replaces pay-TV
The latest findings from
consumer market research
specialist Horowitz
Research's Multiplatform
Content & Services report
claims that over-the-top
streaming video on demand
(OTT SVoD) services remain
a complement to, not a
replacement for, traditional
pay TV: 40% of Internet
users have multichannel
and an OTT SVoD service,
42% have multichannel
only, 11% have an OTT
SVoD service only, and 7%
have neither. Among OTT
SVoD users, 78% are also
multichannel subscribers.
But recent OTT
developments from
within the next few months,” said Brett
Sappington, director, research, Parks
Associates. “The high churn rate for many of
the ͔