Streaming services are constantly changing and adapting to suit the needs of consumers, but it’s
not always easy to keep up with all of them. It's even hard for me, and I'm a professional writer! The average OTT subscriber switches services every 10 months, according to SymphonyAI Media.
Parks Associates found that most people do this because they want new content or their favorite show isn’t available on their current subscription.
The average OTT (over-the-top) service
subscriber in the U.S. drops one of their streaming services every 10 months—that's with an average 27% churn rate, according to SymphonyAI Media.
The average OTT service subscriber in the U.S. drops one of their streaming services every 10 months, according to SymphonyAI Media.
That means you have to be ready for the inevitable influx of new subscribers who don't stick around long
enough to become loyal customers—and you should be prepared when they leave.
Parks Associates found that the most common reasons for dropping a streaming service is the cost — which makes sense when you remember the average Netflix subscriber pays less than $10 per month for their subscription, or that Amazon Prime members typically spend much more on Amazon’s retail products and ecommerce than they do on TV shows and movies ($1,300 for
Prime members vs. $300 for non-Prime members).
You love your streaming service, but if you're looking for a new one, it's probably not because the old one doesn't work. THe found that the most common reasons for switching streaming services are cost and content quality — which makes sense when you remember that Netflix members pay less than $10 per month for their subscriptions, or that Amazon Prime members typically spend much more
on Amazon's retail products and ecommerce than they do on TV shows and movies ($1,300 for Prime members vs. $300 for non-Prime members).
After just six months, Quibi has dropped its ad-free tier. In a recent earnings call, Quibi CEO Meg Whitman said the move to a free tier (which is available to users who sign up with an email address) would introduce her company's new video platform—as well as its ads—to an "entirely new audience," while
drawing back viewers who wanted ad-free content.
The streamer's decision to go free may seem like a strange move for the tech giant, but it's not the first time Quibi has shifted its strategy. The service initially launched as an ad-free premium streaming service, with plans to charge $4 per month or $40 per year for an ad-free experience. For six months in market, this was true—but then last week Whitman announced that Quibi would drop its
ad-free tier entirely and become a free streaming service instead.
Quibi’s decision to switch services is common among cord cutters. According to our study of 60+ hours of TV consumption data from 500+ households over six months—which included on-demand viewing of all types—one in three people who subscribe to one paid TV service also subscribe to another paid TV service (or two).
Survey shows that people on average use up to 10 different streaming apps, with nonpaid services accounting for around 32% of that figure.
With so many streaming options out there, it's no wonder consumers are switching services more often. The increase in overall churn is perhaps unsurprising, as a TiVo consumer survey in October revealed viewers use on average up to 10 different streaming apps, with nonpaid
services accounting for around 32% of that figure.
That said, Netflix and YouTube are still the most commonly used paid streaming apps—and one could expect them to be among the most frequently switched from given their ubiquity and user-friendly interfaces. However, Amazon Prime Video has seen an uptick in usage since August 2018 (the month before it was added to Apple TV) compared to May 2018 (the month before it was made available through
Roku), suggesting users may be becoming fond of this service even if they're not canceling other paid subscriptions.
Nearly half of consumers (48%) say content is the primary motivation to subscribe to a new service.
The reason consumers are constantly switching between services, according to Parks Associates, comes back to content, with nearly half (48%) of consumers citing content or
a specific program as the primary motivation to subscribe to a new service.
For ad-supported streaming, it is critical to provide niche content that appeals only to a small number of viewers. Parks Associates found that roughly 65% of people are looking for specific types of programs available on one service and not another.
This month, The Roku Channel unveiled NHL TV, the league's
first-ever linear channel that will exclusively stream hockey games and other content on this platform.
Streaming services have been on a mission to offer as many different ways to watch content as possible, from live TV streaming to video game consoles and even smart speakers. In the process, they’ve found that viewers are more likely than ever before to switch between different devices. For example, Parks Associates indicated roughly 65%
of viewers are looking for specific content that can only be found on a particular service such as Amazon Fire TV or Apple TV+. Just this month, The Roku Channel unveiled a free ad-supported streaming TV (FAST) channel for the NHL, the league’s first-ever linear channel that's exclusive to the platform.
The availability of niche channels is one way that streaming platforms can keep users engaged while also attracting new viewers
who want access to specific content like sports or reality television shows.
As OTT services compete for viewers, Parks Associates believes streaming companies can give themselves an edge by focusing on a hybrid business model that combines video-on-demand and subscription content.
According to the report, a hybrid streaming approach can appeal to more consumers and potentially offset
slowdown in SVOD revenue growth—but that model also makes it more complicated for streamers to collect user data.
It’s not surprising that consumers are changing their streaming services often. Whether it be because of price or content, we know that this trend will continue for years to come.