Parks Associates noted last week that like cable’s Playboy Channel of the past, OTT services come and go pretty quickly; the churn can be profound. Parks found 9% of Netflix’s subscribers quit, a reasonable amount of churn. But half of the Hulu Plus subscriber base bolted, no doubt why Hulu is adding a lot more “plus” to its content even as it drops that part of its name.
There are smaller OTT services. The number of people who have quit one or more of them is equal to 60% of their total subscribers. Parks also notes, in what might be called the Warning to Lemmings section of the report, that it counts 75 OTT services, with another dozen planned in the months to come. It doesn’t quite say, “Don’t do it,” but it does try to point out that beyond Netflix, it’s a real gamble.
From the article "That's Life: Sick Of Commercials And Fickle About Online Services" by P.J. Bednarski.
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