International SVOD platforms can expect a subscriber and viewing boost through the holiday season, with a sizable proportion of the new customers planning to churn when the festivities are over, according to new research.
Digital billing and payments specialist Paywizard’s research reveals there will be a huge spike in usage of online TV services around the world, during the Christmas period. Almost half of new paying customers, however, plan to cancel their subscriptions within six months, it added. Key reasons for churning are value for money and a lack of a rich content offering.
Paywizard surveyed consumers in Australia, Brazil, Germany, Singapore, the UK and US and foundthat 52% of viewers will use online TV over Christmas. “However, perceived poor value-for-money and a lack of sustainable content choices mean that 15% of OTT subscribers plan to cancel their services in January, with a further 30% churning in the next six months,” it said.
“While OTT is disrupting the entertainment market, it’s pretty clear there is much to do to keep customers subscribed for a sustained period of time,” said Bhavesh Vaghela, chief marketing officer at Paywizard. “This global survey shows that key demographic groups like the over 55s are not being catered for, while the core 24-35 working adults are running out of relevant content that is of interest to them.”
He added: “If OTT providers are to succeed in a highly competitive environment, it’s essential they provide a more personalised service based on a full understanding of the customer behaviours and viewing habits.”
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20 June 2021 @ 13:38:00 UTC