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Amazon Prime, HBO & Now TV Face Decreasing Audiences, as Abandonment Rates Outpace Adoption

Multiple Subscriptions Impact Players in Developed Markets, Only Netflix Set to Outperform
Hampshire, UK(10/2/2018) - A new consumer survey from Juniper Research has found that increased churn rates are being faced by video streaming services such as Amazon Prime
(-2.9%) and HBO Now (-19.2%) in key markets such as the UK and the US.

Contrastingly, Netflix outperformed its rivals; showing positive adoption rates in both the US and UK (6.3% and 7.7%), opposing the belief that services are discontinued after a trial month.

For more market insights, download the free whitepaper: ‘Digital TV ~ 3 Key Consumer Insights’.

Multiple Subscriptions Set to Burden Consumers

Juniper’s latest research, Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023, found that consumers are burdened with numerous SVOD (Subscription Video on Demand) subscriptions. For example, the survey highlighted that Chinese and US respondents acquire an average of 3 subscriptions each, in comparison to 2.5 in the UK.

Research author Lauren Foye noted: “The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers. Juniper finds a growing danger in users reducing, or switching SVOD subscriptions, as monthly fees inevitably rise as a result of ever-increasing content spend; Netflix alone is set to spend $13 billion this year.”

The research also found that the curation of content is set to become a growing issue, with the need to engage consumers as critical, lest SVOD providers see unsatisfactory services cancelled. Juniper urges collaboration between OTTs and traditional platforms. For example, Sky hosting Netflix content via its Q platform; a slick and refined user experience.

Sports – a Critical Asset for Traditional Providers

The survey identified the importance of broadcast. 40% of UK survey respondents stated that they streamed live sports, yet only 6% of these individuals watch sports through online channels alone; consequently streamers continue to utilise broadcast sports.

With a similar pattern from the US and China, broadcasters must seek to produce a best-in-class experience; aiming to provide this both through broadcast and online in order to outpace OTTs.

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary
Juniper Research Limited
Editorial Contact:
Sam Smith

sam.smith@juniperresearch.com