A new consumer survey from Juniper Research has found that increased churn rates are being faced by video streaming services such as Amazon Prime (-2.9%) and HBO Now (-19.2%) in key markets, including the UK and the US. Contrastingly, Netflix outperformed its rivals, showing positive adoption rates in both the US and UK (6.3% and 7.7%), opposing the belief that services are discontinued after a trial month.
Juniper’s latest research found that consumers are burdened with numerous SVoD subscriptions. For example, the survey highlighted that Chinese and US respondents acquire an average of three subscriptions each, in comparison to 2.5 in the UK. Research author Lauren Foye noted:
“The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers. Juniper finds a growing danger in users reducing or switching SVoD subscriptions, as monthly fees inevitably rise as a result of ever-increasing content spend. Netflix alone is set to spend $13 billion this year”.
The research also found that the curation of content is set to become a growing issue, with the need to engage consumers equally as critical, while unsatisfactory SVoD providers will see their services being cancelled. Juniper urges collaboration between OTTs and traditional platforms — e.g., Sky hosting Netflix content via its Q platform.
The survey identified the importance of broadcast. 40% of UK survey respondents stated that they streamed live sports, yet only 6% of these individuals watch sports through online channels alone. Consequently, streamers continue to utilise broadcast sports. With a similar pattern from the US and China, broadcasters must aim to produce a best-in-class experience, both via broadcast and online, in order to outpace OTTs.