Abandonment outpaces adoption for Amazon Prime, HBO, NOW TV | Media Analysis | Business | News | Rapid TV News
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They may all be looking to catch up with Netflix, but the second rank of online video firms may really need to be more concerned with their own churn according to a study from Juniper Research.
HBO Now 20 Jan 2017

The research found that the video streaming service providers are facing increased churn rates, specifically -2.9% for Amazon Prime and -19.2% for HBO Now in key markets such as the UK and the US. By marked contrast, Netflix showing positive adoption rates in both of the same territories, 6.3% and 7.7% for the US and UK respectively. These rates said Juniper in the Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023 report confounded the received wisdom that services are discontinued after a trial month.

The report showed that consumers are burdened with numerous SVOD (subscription video-on-demand) contracts. It highlighted that Chinese and US respondents acquire an average of three subscriptions each, in comparison with 2.5 in the UK. While two-fifths of UK survey respondents stated that they streamed live sports, only 6% of these individuals watch sports through online channels alone; consequently streamers continue to utilise broadcast sports.

Juniper advised broadcasters that they must seek to produce a best-in-class experience; aiming to provide this both through broadcast and online in order to outpace OTTs. “The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers,” noted Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023 report author Lauren Foye. “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.”

Juniper also warned that the curation of content is set to become a growing issue, with the need to engage consumers seen as critical, lest SVOD providers see unsatisfactory services cancelled. The analyst urged collaboration between OTTs and traditional platforms such as Sky hosting Netflix content via its Q platform.