OTT subscriptions to rise over the Christmas period12 December 2016
The number of OTT subscriptions in key markets is expected to see a significant rise over the upcoming Christmas period, according to the latest Paywizard research.
The survey does however claim that half of the seasonal sign-ups will churn.
Paywizard say that 30 per cent of consumers surveyed intend to subscribe to pay-OTT services ahead of Christmas, and 18 per cent of this group will be first-time customers.
“While Christmas 2016 looks strong for OTT operators, as the projected new subscriber figures (18 per cent) added to those for existing customers (45 per cent) would take the total percentage of subscribers to 63 per cent after Christmas,” the report stated.
“However, the findings also reveal that 50 per cent of those planning to take an OTT service for the first time this holiday season intend to cancel their subscription within six months.”
“There are definitely huge opportunities for OTT players to build on the momentum paid VoD services are showing across all markets,” added Bhavesh Vaghela, Paywizard CMO.
“Nonetheless, while OTT operators are poised for another huge lift this Christmas, it is clear that subscribers view these services as an activity they can dip in and out of. Keeping customers loyal is the major challenge facing providers.
“As OTT adoption nears the 60 per cent range, operators need to address every point of the customer journey and work harder to keep new and old subscribers alike.”