Increased churn rates are plaguing video streaming services such as Amazon Prime (-2.9%) and HBO Now (-19.2%) in key markets such as the UK and the US, according to a new consumer survey from Juniper Research.
By contrast, Netflix outperformed its rivals; showing positive adoption rates in both the US and UK (6.3% and 7.7%), opposing the belief that services are discontinued after a trial month.
Juniper’s latest research found that consumers are burdened with numerous SVOD subscriptions. For example, the survey highlighted that Chinese and US respondents acquire an average of three 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,” notes 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.
The survey also identified the importance of broadcast – 40% of UK survey respondents stated that they streamed live sports, yet only 6% of these individuals watch sports through online channels alone. Consequently streamers continue to utilize 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, the report says.