About 40% of all U.S. broadband households have trialed at least one OTT service during the COVID-19 pandemic, and nearly 70% of those households have ultimately subscribed to between one and four-plus services, according to a whitepaper from Parks Associates and Salesforce.
Broadband households spent an average of $16 per month on OTT video service subscriptions in Q1 2020, based on consumer-reported spending. The overall OTT churn rate hovers around 40%.
“The use of free trials, promotional offers and bundled packages accelerated through the first part of 2020, during the initial stage of the COVID crisis,” said Steve Nason, research director for Parks.
“The conversion of those trials to paid subscriptions has also increased, but to keep those subscribers long term, providers need to deliver a continually evolving and personalized experience. Taking in and leveraging the data gained from viewer habits and actions offer OTT video service providers an opportunity like never before to engage subscribers through every phase of their journey with their services.”
“Companies that effectively integrate smart data are leading the battle to engage the digital media and entertainment consumer,” Nason added. “The overall OTT churn rate has dipped some, but if the economic impacts from COVID-19 pandemic linger, households will continue to scrutinize their spending in entertainment services and determine which ones to keep and which ones to cancel. Smart data usage can give an advantage to a provider in keeping their service at the top of a household’s entertainment equation.”