There are many considerations that potential customers weigh when deciding to subscribe to an OTT service or not. The content that the service offers leads the way in guiding a prospective customer to a paying one. However, the use of free trials, and the different subsequent actions the trial process produces, is also a leading driver of subscriptions. Promotional and cross-sell/bundling efforts also play a role in the subscription acquisition process.
Drivers for Subscribing to OTT Services US Broadband Households Subscribing to at Least One OTT Services in the Last 12 months
The service o ered content I want to watch I wanted to watch a speci c program or event I was o ered a free trial I enjoyed the service trial and decided to keep it Others in my household wanted to subscribe There was a sale or promotion for subscribing
TRIAL TRIGGER
TRIAL TRIGGER
PROMO TRIGGER CROSS-SELL TRIGGER
It was bundled with another service I nally had the money to subscribe I purchased a smart TV or streaming device I had nished learning about my options and was ready to subscribe The trial period was over and I never got around to cancelling I cancelled another service
TRIAL TRIGGER
TRIAL TRIGGER
0%
10% 20% 30%
© Parks Associates 40%
The use of free trials, promotional offers, and bundled packages of cross-sell services has accelerated through the first part of 2020, during the initial stage of the COVID crisis. The conversion of those trials to paid subscriptions, the key metric in the customer acquisition stage, has also increased. ~40% of US broadband households trialed at least one OTT service, up seven points from the previous year. Nearly 70% of OTT trialers ended up subscribing to at least one of those services. © Parks Associates
OTT Service Trial Conversions US Broadband Households Trialing at Least One OTT Service
69%
2 Subscriptions
1 Subscription
3 Subscriptions
4 or more subscriptions
No subscription
© Parks Associates
OTT video service providers have the opportunity like never before to better engage and then acquire potential subscribers during the acquisition phase to convert them to paid subscribers and retain them as long-term customers. Smart data can be the engine that drives much of those customer engagement efforts.
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