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A recent White Paper from consulting company Cartesian confirms this assumption, calculating the churn-rates for a number of different types of video service-provider (see Figure 1), and quoting Parks Associates’ conclusion that “a typical over-the-top provider experiences churn of 60% annually, which is three to five times more than a traditional Pay TV provider.”
From the article "Cartesian: Why It Matters That Churn Is Higher For OTT SVOD Providers Than For Traditional Pay TV Operators" by Barry Flynn.
Pay-TV operators are seeing a "slow erosion of the core business," analyst Brett Sappington at Parks Associates said. "After years of attempts to be more than just a 'dumb pipe,' pay-TV operators h...
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Beyond that, AT&T also gets revenue by licensing those movies and TV series to other pay-TV providers and subscription Net TV services such as Netflix. "Video and entertainment will remain the key dri...
