sri92016 OTT Subscriber Anal Churn Rates for Nofix, Hu Pls, and Amazon Prime Users show consumers ae testing now video services PARKS 7 RESOMINWSSE for more than so years ‘THURSDAY, JULY 30,2018 OTT Subscriber Annual Churn Rates for Netflix, Hulu Plus, and Amazon Prime Users show consumers are testing new video services Share This Parks Associates’ OTT Video Market Tracker reveals high churn rates for mary OTT video subscriber services. Inthe past 12 months, 4% of US. broadband households have canceled tha Netix servic, representing nearly 9% of Netfixrs curt subscrber bars. By comparson, 7% have Cancellog ther Huu Plus subecnton whi the past 12 months, igure tht represents appronmately one-half of Huky Poe's curentsubserber bas. ‘As a group, smallor OTT video services have extremely Pigh chur rates as wall. Seven porcent of U.S. broadband nouseholss subscribe {0 an onine Vie service ather than Hulu, Amazon Instant Video, or Nellix. The numberof people canceling one of more of these services over the pas yoar Fopresents 60% of those who subscribe curently. Subscribers Canceling OTT Service asa Percentage of Current Subscriber Base Subscribers of Specified OTT Services in US. Broadband Households 1 TT ‘Amazon Prime Instant Video Neti" Wat neta = mm “Tough the OTT Video Market Tracker service, we are tracking the deals and trends of over 76 OTT video services active in the U.S. market along ‘wih another dezan or 30 sences planning fa ater the market thn the next few months said Bret Sappington. Drector Resch, Parks tha! consumare are helaing onto the Netix account while expafimartng wth “Consumars wil go whore necessary to got the video conten that thoy want" sald Glonn Hower, Research Analyst, Parks Associtos, “Those vidoo ‘ervcgs are rlafvely low cost, Consumers can easly experment wih diferent services to find the nes that best sulk th interes, At the same time, they ean quickly consume the most Interesting content within @ Service and move en” Curent, 85% of U.S, broadband households subscribe toa pay-TV eervice, and 59% of U.S, broadband households access an OTT video subserpton. Of hose who use OT" video, jst under 0% use two of more services, “To shed numberof subscribers equa to half or more of your cuent subscriber base Is 9 huge problem,” Sappington sald. “Customer acqusition costs Yor an OTT subscrption service are raaivaly Tow, paiculay compared to pay TV, but OTT vdeo services wil eventual have fo cepure and fata thr customer basse overtime In rderto survive the ton fer” ciate. com, To schedule an interview with an For more information about OTT Viseo Market Tracker and relate research, contact sales park snalyst or fo requos! specie data, please contac Helly Sprague al heprague@gmall.com. About Parks Associatos: Parks Associlos is an intmalionally recognized markel research and consulting company specializing in emersing Consumer technelogy products and services. Foundod in 1986, Parks Aseocints crests resoare® capital for companies ranging tm Fortune S00 to Smal startups trough market ropots, primary sluts, consumer researc, custom roseareh, wrkshope, execute confronces, and annval Sorvie® Subscriptions ‘The companys expertise includes the Inemet of Things (10), dlgital media and platforms, enteanment and gaming, Rome networks, Inmet ane Iclovision sorvces, dial health, mobile appleations and sondees, suppor services, consumor apps, advanced adverising, consumer electrons fee-gy management, and Rome sentol systems and sexual, 5, Parks Associates hosts industry webcasts, tne CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, and Connected Heals Summit Engaging Consumers https parksassociates.com hnips:iwwr parksassocates.com/boglarticllprjuy201S-ttracker w