Subscription services such as Amazon Prime, HBO & Now TV face a decline in their audiences, as Abandonment Rates Outpace Adoption.
HAMPSHIRE, UK — A new consumer survey from Juniper Research has found that increased churn rates are being faced by video streaming services such as Amazon Prime (-2.9%) and HBO Now (-19.2%) in key markets such as the UK and the US.
However, Netflix outperformed its rivals; they have had positive adoption rates in both the US and UK (6.3% and 7.7%), opposing the belief that services are discontinued after a trial month.
Multiple Subscription Choices Set to Burden Consumers
Juniper’s latest research, ‘Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023’, found that consumers are burdened with numerous SVOD (Subscription Video on Demand) subscriptions, making it harder for SVOD services to compete with each other. For example, the survey highlighted that Chinese and US respondents acquire an average of 3 subscriptions each, in comparison to 2.5 in the UK.
Research author Lauren Foye noted: “The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers. Juniper finds a growing danger in users reducing, or switching SVOD subscriptions, as monthly fees inevitably rise as a result of ever-increasing content spend; Netflix alone is set to spend $13 billion this year.”
The research highlighted that the need to engage consumers is critical and that the curation of content is set to become a growing issue. Juniper urges collaboration between OTTs and traditional platforms. For example, Sky hosting Netflix content via its Q platform; a slick and refined user experience.
Sports – a Critical Asset for Traditional Providers
The survey showcased the importance of broadcast. 40% of UK survey respondents stated that they streamed live sports, however only 6% of these individuals watch sports through online channels alone; consequently, streamers continue to utilise broadcast sports
With a similar pattern showing from the US and China, broadcasters must seek to produce a best-in-class experience; aiming to provide this both through broadcast and online in order to outpace OTTs.
Source: Digital TV News
