Subscriber abandonment is outpacing adoption rates at Amazon Prime and HBO Now, among other platforms in the U.S. and the U.K., Juniper Research says in a new whitepaper, while Netflix continues to outperform its rivals.
Juniper says Amazon Prime’s churn rate is about 2.9 percent and HBO Now’s is 19.2 percent. Netflix, meanwhile, had a positive adoption rate of 6.3 percent in the U.S. and 7.7 percent in the U.K. The data was released in Digital TV & Video: Consumer Attitudes and Network & OTT Strategies 2018-2023, which explores SVOD trends in China, the U.S. and the U.K. In China and the U.S., respondents have an average of three subscriptions each.
“The use of multiple subscriptions suggests that no one provider offers enough to currently satisfy consumers,” says Lauren Foye, the author of the report. “Juniper finds a growing danger in users reducing, or switching SVOD subscriptions, as monthly fees inevitably rise as a result of ever-increasing content spend; Netflix alone is set to spend $13 billion this year.”
The research also highlights the growing importance of curation and urges greater collaboration between streaming and traditional platforms, such as Netflix’s deal with Sky to be on the Q platform.
Juniper also points to the continued importance of traditional broadcast, particularly in the sports space.
“Juniper finds the quality and volume of content made available through online streaming platforms will be critical for providers in the future,” the white paper notes. “The funds allocated for purchasing media by OTTs thus far has been considerable, as providers seek to entice as many customers as possible and out-compete their rivals.”
Juniper forecasts that total revenues for SVOD services will reach $66.9 billion by 2023, up from $33.2 billion in 2018.