OTT service churn in 2019 reached 35%, up from 28% in 2018

Parks Associates and Swrve present data and insights on driving engagement and reducing churn in saturated OTT market

International research firm Parks Associates finds the churn rate among all OTT services was 35% in 2019, an increase of 25% from 2018.

Parks Associates’ consumer data notes churn among vMVPDs (virtual multichannel video programming distributors or online pay-TV providers) was 81% in 2019. However, over two-thirds of vMVPD subscribers would find it difficult to give up at least one of their current subscriptions, so providers that offer the right mix of content, personalization, and ease of use can secure very loyal subscribers.

“Overcoming high churn and driving engagement are notable challenges for video service providers, especially as the market becomes more saturated and penetration rates slow,” said Steve Nason, Research Director, Parks Associates. “OTT services are offering free trials and promotional offers to drive initial service uptake, but these tactics are also leading to sky-high churn rates. To secure long-term subscriber fidelity, providers need to offer more, including original content and a personalized user experience.”