There are many drivers of customer churn as video consumers weigh if they are going to continue subscribing to a service or not. • The COVID-19 crisis has had devastating economic impacts on households across the US, so many consumers feel a need to cut household expenses • The end of a promotional offer, resulting in a higher price for a service, will drive some consumer to cancel a service. • Content-related drivers also have a major impact on the decision to cancel a service. If the economic impacts linger for the foreseeable future, households across the US will continue to weigh their investment in entertainment services and evaluate which ones to keep and which ones to cancel.
Reason for Cancelling OTT Services US Broadband Households Cancelling OTT Services
Need to cut household expenses I nished watching the show(s) I liked The promotion price or o er ended Couldn’t nd good programs to watch Service raised its price Service took away programs I like to watch I like to change services occasionally to nd new content No time to use service
0%
15%
© Parks Associates 30%
Consumers report an average monthly spending on OTT video service subscriptions is $16 in Q12020. Total entertainment spending, including OTT subscriptions, movie tickets, video-on-demand/pay-per-view, video downloads, and physical media, is $53 per month. © Parks Associates
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