New analysis from Parks Associates has discovered that 76 p.c of U.S. broadband households subscribed to an OTT video service in Q1 2020, whereas the churn charge for streaming providers was 41 p.c.
The OTT video analysis is from a survey of 10,000 U.S. broadband households fielded in March 2020. It additionally discovered that 62 p.c of U.S. broadband households subscribed to a conventional pay-TV service.
“The leisure business, like all industries, faces an unprecedented state of affairs on account of the continuing COVID-19 pandemic,” mentioned Steve Nason, analysis director at Parks Associates. “With film theaters closed and cinematic productions and stay occasions cancelled or postponed, providers are missing some high-dollar content material on the similar time general video consumption is accelerating. OTT providers responded by including new releases and prolonged free trials. Consequently, OTT subscriptions have elevated, whereas the churn has declined barely since final yr. However we are going to see, as lockdowns ease, if these methods result in sustainable development or if the OTT business wants to regulate once more to new viewing patterns.”
“Of the 41 p.c of households that trialed at the very least one OTT service, the bulk (69 p.c) adopted at the very least one paid subscription,” Nason mentioned. “New trial provides will be profitable in attracting new customers, however as competitors will increase and family budgets shrink, suppliers might want to discover new service fashions, akin to making a portion of content material free or providing reductions to longer-commitment subscriptions.”
— to worldscreen.com