A consumer survey from analyst firm Juniper Research has found that increased churn rates are being faced by video streaming services such as Amazon Prime (-2.9 per cent) and HBO Now (-19.2 per cent) in key markets such as the UK and the US.
Contrastingly, Netflix outperformed its rivals; showing positive adoption rates in both the US and UK (6.3 per cent and 7.7 per cent), opposing the belief that services are discontinued after a trial month.
Juniper’s latest research, Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023, found that consumers are burdened with numerous SVoD (Subscription Video on Demand) subscriptions. For example, the survey highlighted that Chinese and US respondents acquire an average of 3 subscriptions each, in comparison to 2.5 in the UK.
“The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers,” noted research 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.”
The research also found that the curation of content is set to become a growing issue, with the need to engage consumers as critical, lest SVoD providers see unsatisfactory services cancelled. Juniper urges collaboration between OTTs and traditional platforms. For example, Sky hosting Netflix content via its Q platform; a slick and refined user experience.
The survey identified the importance of broadcast. 40 per cent of UK survey respondents stated that they streamed live sports, yet only 6 per cent of these individuals watch sports through online channels alone; consequently streamers continue to utilise broadcast sports.
With a similar pattern from the US and China, broadcasters must seek to produce a best-in-class experience; aiming to provide this both through broadcast and online in order to outpace OTTs.