Parks: US churn rate for OTT services is 19%

Brett Sappington

Some 19% of US broadband households cancelled an over-the-top video service in the past 12 months, producing a churn rate of almost one in five homes. 

This is according to Parks Associates’ latest ‘OTT Video Market Tracker’ stats, which said that overall churn rate for OTT services has been roughly stable for the past year.

At the end of 2015, 20% of US broadband households were found to have cancelled at least one OTT video service in the past 12 months and Netflix, Amazon, and Hulu all slightly reduced their churn rates last year, according to the study.

“One-third of households that currently subscribe to an OTT video service have cancelled one or more services in the past year, which shows that there is quite a bit of experimentation occurring right now,” said Parks’ senior director of research, Brett Sappington.

The research found that US homes with OTT video subscriptions increased their spending from an average of US$3.71 (€3.44) per month in 2012 to US$7.95 in 2016.

At the same time, spend on physical media and rentals declined from an average of US$15 per month to US$8 per month, and spend on digital transactional video declined from an average of US$2.42 per month to US$1.42 per month.