The churn rate among all OTT services increased by one-quarter in the space of a year, comparing 2019 to 2018 figures, according to the research firm Parks Associates. In 2018 the churn figure was 28%, and a year later it was 35%. “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,” comments Steve Nason, Research Director at Parks Associates.
“Overcoming high churn and driving engagement are notable challenges for video service providers, especially as the market becomes more saturated and penetration rates slow,” he adds. “To secure long-term subscriber fidelity, providers need to offer more, including original content and a personalised user experience.”
Parks Associates is hosting a webcast called ‘Driving Engagement and Reducing Churn in OTT’ on Tuesday, March 17.