OTT Subscribers Are Quick to Depart, Nearly Half Plan to Cancel
The holidays bring over-the-top (OTT) video services new customers thanks to special offers and holiday gifts, but nearly half of those customers plan to cancel by the summer. That news comes from Paywizard, a London-based pay TV monetization company, which has created a global study on the subject. After surveying consumers in the U.K. Germany, Australia, Brazil, Singapore, and the U.S., Paywizard found that 25 percent already used an OTT service, while 27 percent more planned on signing up for one during the holiday season. However, 15 percent of those new subscribers planned on cancelling their services by January, while another 30 percent will do so within six months.
OTT's retention problem seems to be caused by a lack of attractive content. Young adults especially (ages 24 to 35) run out of content that interests them. Services like Netflix, Hulu, and Amazon Prime create popular original programming, but binge-viewers can get through it quickly. Older adults (over 55) feel that OTT services don't cater to their interests.
The answer, according to Bhavesh Vaghela, the chief marketing officer at Paywizard, is for OTT services to provide more personalized services based on a deeper understanding of consumer viewing habits and behaviors.
For more survey results, download the full report for free (registration required).
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