According to a report from Parks Associates, many OTT video subscriber services suffer from high churn rates. Statistics show that 4% of US broadband households have cancelled their Netflix service in the last year whereas 7% of Hulu customers have done the same. This also applies to smaller OTT video services where 7% of US broadband households subscribe to a service other than Hulu, Amazon Instant and Netflix with the amount of people who have cancelled these services representing 60% of those who currently subscribe.
Glenn Hower, a Research Analyst from Parks Associates, says “Consumers will go where necessary to get the video content that they want. These video services are relatively low cost, so consumers can easily experiment with different services to find the ones that best suit their interests. At the same time, they can quickly consume the most interesting content within a service and move on.”
In order to attract customers it is necessary for OTT companies to take a number of important steps. One of these is that they must ensure that they provide interesting and engaging content for their viewers to keep them entertained. However, one of the most important factors in keeping your clients happy is to monitor the quality of the stream. You may have the best series which customers are eager to watch but without a fully working video stream there is no point in trying to distribute it among clients. If customers have to wait for buffering over and over again then they will simply become frustrated and leave you for another service. This is why it’s important to use a real time data metrics platform, such as YOUBORA Analytics. Through this platform you can monitor and analyse each customers viewing experience and change it so that they are able to enjoy their favourite series. This reduces the churn rate and encourages your customers to keep using your service.
OTT video services face fierce competition and need every advantage they can get, otherwise they will be left behind as their customers opt for faster services with better content.
You can access the full report here
James Noeker on August 07th 2015
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