-->
Save your FREE seat for Streaming Media Connect this August. Register Now!

Buffering, High Costs, and Ads Lead SVOD Subs to Cancel Service

Article Featured Image

Subscription video-on-demand services are taking off, and here's another stat on their growing use: Two-thirds of U.S. consumers use an SVOD, and 52 percent of those watch an online service just as much as they watch their pay TV service.

That data comes from an IBM Cloud Video report titled "Everybody Wants to Rule the Streaming World." IBM Cloud Video is a platform created in January from the acquired companies Clearleap, Ustream, Aspera, and Cleversafe.

Viewers expect the same quality from an SVOD as they're used to from traditional TV, but often they don't get it. The report find that three-quarters of SVOD users report experiencing video buffering or slow stream starts. Also, 17 percent say their technical problems are so severe that they're considering cancelling their service.

But that's not the chief reason people leave their SVOD: The report finds that an abundance of ads is the most likely to drive customers away (27 percent), followed by high costs (25 percent). Next on the list comes a lack of quality content (20 percent), and then technical problems (17 percent). IBM found that 31 percent had cancelled an SVOD subscription.

To gather its data, IBM questioned 1,007 U.S. adults in April using an online survey. The full report is available for free (no registration required).

Streaming Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

A King’s Ransom: Why Do OTT Subscription Costs Keep Rising?

The subscription video market is getting crowded, so why aren't prices declining? To understand that, first understand which actors are driving the market.

64% of Adults Use an SVOD Service, Up 8% From the Previous Year

Subscribers are happy with the content and price of their streaming services, although two-thirds would consider a commercial-sponsored free tier, if available.

IBM Acquires Ustream, Creates Cloud-Based Video Services Unit

Ustream will join other IBM acquisition targets—Clearleap, Cleversafe, and Aspera—in comprising an end-to-end cloud video solution.

Harmonic Acquiring Thomson Video Networks; IBM Buying Clearleap

Harmonic puts together a team that can attract customers on a global scale, while IBM looks to bolster its cloud services.

Sports Fans in No Hurry to Cut the Cord, Finds Clearleap Survey

Will cable survive now that Sling TV offers ESPN streaming? A survey suggests that sports viewers are happy to stick with what they have.

IBM Acquiring Aspera, High-Speed Transfer Specialist

After revolutionizing large-file transfer for the entertainment industry, Aspera's technology will now aid cloud computing and big data.