US OTT churn driven by cost and content

Cost and content are the biggest drivers of OTT churn in the US, claims a new report.

According to research from Parks Associates, the need to cut household expenses was cited as the primary trigger for churn by more than a quarter of respondents. The second most cited reason was that the users finished watching the shows that they were interested in.

Overall, the reasons cited for churn generally go between price – either the end of a promotional offer or price increases – or content – such as an inability to find good shows to watch, or the removal of series from the service.

The least cited reason for churn was that the user had no time to use the service they cut. This was cited by less than 15% of respondents. 

Paul Erickson, senior analyst, Parks Associates, said: “Content is key to OTT success, and the path for consumers today to get to that content is the crucial search and discovery process. OTT players are successful when offering a premium, personalized user experience that allows subscribers to find and access relevant content based on their habits and preferences. A perceptive and intelligent content discovery strategy is a key differentiator in attracting and engaging subscribers over the long term.”