Advanced Television

Research: Over half US OTT triallists become paying subs

April 4, 2019

Research from Parks Associates – OTT Video Services: Purchasing and Perceived Value – finds 58 per cent of US broadband households who trial an OTT video subscription service convert to paying subscribers, with the conversion rate from free trial to paying subscriber being higher among consumers who trial multiple services.

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

“Free trials are an established and effective part of the OTT landscape, but as they become a commoditised offering in an increasingly crowded market, services will experiment with the model to make their service stand out,” Sappington added. “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.”

Categories: Articles, Consumer Behaviour, OTT, Pay TV, Premium, Research