OTT TV will be a big hit with consumers this Christmas

Tuesday, December 8th, 2015 
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‘OTT is for Christmas, but Not Always for Life’, Says New Paywizard Research

  • Over 50% of consumers will go OTT this Christmas
  • 27% are new Christmas OTT subscribers
  • Almost half of OTT subscribers plan to cancel within 6 months

LONDON — Over-the-top (OTT) TV will be a big hit for consumers this Christmas, with 52% of viewers around the world planning to use an online TV service during the festive season. This is according to a new Research Now study, commissioned by Paywizard, the expert in subscriber management for pay-TV. But, although a hit at Christmas, operators like Amazon Prime, Hulu and Netflix will lose many of their festive gains, with 45% of subscribers planning to cancel their subscriptions immediately or within six months.

The study, carried out in Australia, Brazil, Germany, Singapore, the UK and US, found that around 25% of consumers already use an OTT service, and a further 27% are planning to go OTT this Christmas, taking advantage of free trials and special “Black Friday” offers. However, perceived poor value-for-money and a lack of sustainable content choices mean that 15% of OTT subscribers plan to cancel their services in January, with a further 30% churning in the next six months.

OTT TV will be a big hit with consumers this Christmas

“While OTT is disrupting the entertainment market, it’s pretty clear there is much to do to keep customers subscribed for a sustained period of time,” said Bhavesh Vaghela, Chief Marketing Officer at Paywizard. “This global survey shows that key demographic groups like the over 55s are not being catered for, while the core 24-35 working adults are running out of relevant content that is of interest to them. If OTT providers are to succeed in a highly competitive environment, it’s essential they provide a more personalised service based on a full understanding of the customer behaviours and viewing habits.”

Some of the key global findings from the research show:

Over 50% of consumers will go OTT this Christmas

  • Millennials and younger viewers prefer OTT: Not only do 25-34 year olds form the biggest group of existing OTT subscribers, but 40% say they plan to sign up to OTT prior to Christmas
  • Mobile devices prove most popular for OTT Christmas TV: Laptops, tablets and smartphones account for two thirds (66%) of OTT viewing
  • The traditional TV still stands strong: When it comes to Christmas viewing generally, 80% of people plan to use the traditional TV set.

The traditional TV still stands strong as the device of choice for watching TV over Christmas

27% are new Christmas OTT subscribers

  • Rich content is a major draw for new Christmas OTT subscribers: 65% of planned subscribers say they choose a service because ‘there is a lot of stuff I want to watch!’ or to watch a specific show/series
  • Viewers demand more options: 69% of people planning to sign up and 41% of current OTT subscribers would consider signing up to more than one OTT service prior to Christmas.

Almost half of OTT subscribers plan to cancel within 6 months

  • OTT is for Christmas, but not for life: 33% of existing subscribers, and 56% of people planning to sign up to OTT, will cancel their subscription immediately or within 6 months of Christmas
  • Lower cost and more relevant content could persuade quitters to stay: 54% could be persuaded to stay due to rich content, while another third said better value for money would make them keep their OTT service.

Rich content and value for money are the main reasons consumers join and cancel TV services