OTT Churn Increased to 35% in 2019, Research Group Says

By Daniel Frankel
published

The customer churn rate for OTT services reached 35% in 2019, a 25% acceleration over 2018, according to research released today by Parks Associates.

Churn rate is a measurement of how much of the customer base quits and starts a service over a designated period of time. Parks found that churn was particularly high among virtual MVPD services, measuring 81% in 2019.

“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,” said Steve Nason, research director for Parks.

“To secure long-term subscriber fidelity, providers need to offer more, including original content and a personalized user experience,” he added.

Notably, Parks found that economic imperative was the No. 1 driver of OTT customer churn, with the need to cut household expenses listed as the reason more than 30% of OTT customers quit a service. “Couldn’t find programs to watch” was the second biggest reason.

Daniel Frankel
Daniel Frankel

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!