OTT TV will be a big hit for consumers this Christmas, with 52 per cent of viewers planning to use an online TV service during the festive season, according to a new study commissioned by Paywizard. But, although a hit at Christmas, operators like Amazon Prime, Hulu and Netflix will lose many of their festive gains, with 45 per cent of subscribers planning to cancel their subscriptions immediately or within six months.
The study, carried out in Australia, Brazil, Germany, Singapore, the UK and US, found that around 25 per cent of consumers already use an OTT service, and a further 27 per cent are planning to go OTT' this Christmas, taking advantage of free trials and special Black Friday offers. However, perceived poor value-for-money and a lack of sustainable content choices mean that 15 per cent of OTT subscribers plan to cancel their services in January, with a further 30 per cent churning in the next six months.
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. 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.
The study found that millennials and younger viewers prefer OTT, with 25-34 year olds forming the biggest group of existing OTT subscribers, and 40 per cent saying they plan to sign up to OTT prior to Christmas.
Laptops, tablets and smartphones account for two thirds of OTT viewing, however, the traditional TV still stands strong, and when it comes to Christmas viewing generally, 80 per cent of people plan to use the traditional TV set.
OTT is for Christmas, but not for life' the study concluded, as 33 per cent of existing subscribers, and 56 per cent of people planning to sign up to OTT, will cancel their subscription immediately or within six months of Christmas.
Reducing the cost of a service or offering more relevant content could persuade quitters to stay: 54 per cent could be persuaded to stay due to rich content, while another third said better value for money would make them keep their OTT service.
www.paywizard.com
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OTT TV will be a big hit for consumers this Christmas, with 52 per cent of viewers planning to use an online TV service during the festive season, according to a new study commissioned by Paywizard. But, although a hit at Christmas, operators like Amazon Prime, Hulu and Netflix will lose many of their festive gains, with 45 per cent of subscribers planning to cancel their subscriptions immediately or within six months.
