Videonet – 24 Aug 2016 – Providers of OTT SVOD services generally design their business models such that: (a) the monthly subscription cost is significantly less than a traditional Pay TV provider’s; and (b) the contract does not involve a long-term commitment. Therefore…
Continue readingWhy Over-the-Top Video Providers Aren’t Concerned with Churn – and Why They Should Be
Over-the-top (“OTT”) video providers today downplay the fact that their customers churn at far higher rates than traditional service providers. While OTT video has some important differences from traditional Pay-TV, increasing competition and slowing growth will make customer acquisition a more challenging, and expensive, proposition for OTT providers. Understanding the true causes of churn and implementing some best practices can help OTT providers maximize profitability.
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