Over-the-top (OTT) will be hot this Christmas, with 52% of viewers around the world planning to use an online TV service during the festive season, says Paywizard research.
The Research Now study — carried out in Australia, Brazil, Germany, Singapore, the UK and US, and commissioned by the pay-TV subscriber management firm — found that around a quarter of consumers already use an OTT service, and a further 27% are planning to go OTT this Christmas, taking advantage of free trials and special Black Friday offers. Laptops, tablets and smartphones account for two-thirds (66%) of OTT viewing. However when it comes to Christmas viewing generally, 80% of people plan to use the traditional TV set.
However, the survey also showed that perceived poor value-for-money and a lack of sustainable content choices mean that 15% of OTT subscribers plan to cancel their services in January, with a further 30% churning in the next six months. And although a hit at Christmas, operators like Amazon Prime, Hulu and Netflix will lose many of their festive gains, with 45% of subscribers planning to cancel their subscriptions immediately or within six months. In addition a third of existing subscribers, and 56% of people planning to sign up to OTT, will cancel their subscription immediately or within six months of Christmas.
“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.”
