(Above photo source: Eshed Gal-Or, via Flickr)
Seventy percent of US households subscribe to at least one video service, according to a study commissioned by Vindicia, a company specializing in digital services monetization.
The study, conducted by nScreenMedia, also found that the average US subscriber watches 3.4 services and pays an average of $8.53 per streamer.
One big problem for the OTT industry, however, is involuntary cancellation. That happens when a credit card problem, such as insufficient funds, results in automatic account termination. The study revealed that more than a quarter of US streamers have had a subscription cancelled due to a credit card issue, and of those, 30 percent did not re-up.
“Involuntary cancellations are a huge problem for the SVOD industry, particularly among young subscribers,” said study author Colin Dixon, founder and chief analyst at nScreenMedia.
The survey also found that in the US, 38 percent of subscribers have voluntarily canceled one or more services in the last year. Netflix users are slightly less likely than average to have canceled service, with Hulu users slightly more likely.
The top two reasons respondents gave for canceling a streamer: not enough content that they like; and the service didn’t provide good value for their money.
To read the entire study, visit nScreenMedia.
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