OTT pay-TV booms but stickiness a concern | OTT | News | Rapid TV News
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In its second annual global report, subscriber management specialist Paywizard has found that over-the-top (OTT) pay-TV is rocketing, with on-demand subscriptions more than doubling in a year and poised to soar even higher over Christmas.

paywizard OTT survey 9 Dec 2016The study, conducted by Research Now, took the opinion of 6,242 consumers surveyed from six key television markets around the globe, namely the United States, the United Kingdom, Germany, Brazil, Australia and Singapore. Standing out among the many finding was that the percentage of consumers globally with OTT subscriptions has leapt from 25% to 45% in just a year with more people planning to sign up prior to Christmas and nearly three-fifths of planned to watch more TV over the coming Christmas period. Nearly a third intended to subscribe to pay-OTT services such as Netflix, Amazon Prime Instant Video and Hulu in the run-up to Christmas this year, up from 27% in 2015.

The survey also showed that more consumers intend to do their holiday television viewing on smart TV sets (85% in 2016 versus 80% last year), while slightly fewer plan to watch on mobile devices, which include smartphones, tablets and laptops (46% versus 42% in 2015) – which tallies with industry figures showing stronger sales of smart TVs with built-in OTT compatibility.

Yet even as OTT pay-TV services were surging in popularity, with the percentage of consumers subscribing nearly doubled over the past year, the survey also revealed a lack of stickiness, with half of those planning to take an OTT subscription for the first time this holiday season also intend to cancel within six months.

The OTT isn’t just for Christmas: The Gift that Keeps on Giving report indicates that despite global OTT brands Netflix and Amazon Prime driving pay- OTT growth, there was also a trend, indeed opportunity, for local operators to act as native challenger brands. The research cited Foxtel Play in Australia, Maxdome in Germany and Now TV in the UK as showing strong potential, with 32%, 22%, and 19% respectively of first-time subscribers planning to sign up to these services this Christmas.

“There are definitely huge opportunities for OTT players to build on the momentum paid video-on-demand services are showing across all markets,” commented Paywizard chief marketing officer, Bhavesh Vaghela. “Nonetheless, while OTT operators are poised for another huge lift this Christmas, it is clear that subscribers view these services as an activity they can dip in and out of. Keeping customers loyal is the major challenge facing providers. As OTT adoption nears the 60% range, operators need to address every point of the customer journey and work harder to keep new and old subscribers alike... the pay-TV sector is a dynamic and rapidly changing marketplace, where incumbency is no guarantee of future success and challenger brands remain on the rise. There is still enormous potential for new and local OTT players to carve their own niche and attract both first-time and multi-service subscribers. The findings make clear that in pay-TV, there is still everything to play for.”
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