Over half of US broadband households who trial SVOD become paying subscribers

Wednesday, April 3rd, 2019 
Parks Associates logo

Parks Associates: Over Half of US Broadband Households Who Trial an OTT Video Subscription Service Convert to Paying Subscribers

  • Research firm to present new OTT video research at the NAB Show on consumer perceptions, adoption, and use

DALLAS — New research from Parks Associates finds 58% of US broadband households who trial an OTT video subscription service convert to paying subscribers. The firm will present its OTT research at the upcoming NAB Show in Las Vegas, including highlights from ‘OTT Video Services: Purchasing and Perceived Value’, which reports that the conversion rate from free trial to paying subscriber is higher among consumers who trial multiple services.

Parks Associates: Over Half of US Broadband Households Who Trial an OTT Video Subscription Service Convert to Paying Subscribers

Parks Associates: Over Half of US Broadband Households Who Trial an OTT Video Subscription Service Convert to Paying Subscribers

“Some OTT providers have expressed concerns that consumers might be churning through trials to avoid paying. While some trial abuse likely occurs, the high rate of conversion suggests that most users are actively evaluating for genuine adoption,” said Brett Sappington, Senior Director of Research, Parks Associates. “Among users trialing three or more services, almost 80% subscribe to at least one of the services that they tested.”

Sappington will participate at the Streaming Summit during the NAB Show, where he will join other OTT experts to address the trends in streaming services and the video market, including the impact of Apple’s recent announcements regarding the company’s Apple TV+ streaming service and the Apple TV app. The panel will take place on April 9 at 1:30 PM in Room N251 (North Hall).

‘OTT Video Services: Purchasing and Perceived Value’ examines current perceptions, adoption, and use among consumers for SVOD, AVOD, and TVOD OTT video services, including average amount spent, number of services taken per household, drivers of adoption, and OTT service churn.

“Free trials are an established and effective part of the OTT landscape, but as they become a commoditized offering in an increasingly crowded market, services will experiment with the model to make their service stand out,” Sappington said. “For example, Sling TV recently began allowing non-subscribers unauthenticated access to limited content, essentially a pre-trial opportunity that encourages viewers to begin an actual trial.”

Links: Parks Associates