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Verimatrix: View from the Top 2020

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How Can OTT Services Beat the 35% Churn Rate?

Retaining subscribers is clearly an ongoing challenge for OTT and vMPVD services. They frequently attract viewers for a single show or popular live-streamed event and are afterwards canceled. Churn is a problem for operators and vMPVD alike, but unlike operators who offer other services such as bundled internet, the churn for vMPVD and OTT services can be up to nine times higher.

Customization is key to combatting this issue. Before a customer cycles out of Hulu, for example, the platform is planning for users to view a series of targeted promotions based on tracking their additional content streamed. This demonstrates the value Hulu has to offer to a potential long-term subscriber if they simply stay on their existing plan. Second, offering different pricing models with modified content could entice a customer who would be willing to stay on at a lower monthly price point. A cut in monthly subscriptions is far better than completely losing more money-conscious customers. 

Considering these two options—customization and tiered pricing—is a must when seeking to retain subscribers for the long haul. Your analytics partner should be able to provide a 360-degree view of your customers to enable better, and more proactive campaigns to reduce churn. Talk to us to see how the Verimatrix Analytics platform can help you identify and avoid churn risk by better understanding subscriber engagement. Offering flexibility as well as variety becomes a win-win scenario.


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