52% of Consumers Worldwide Planning to Stream OTT TV for Christmas
Post-Holiday Subscriber Retention a Major Hurdle for Service Providers
A recent study commissioned by Paywizard reveals a sharp rise in Internet TV services worldwide over the Christmas holiday, with 52% of viewers planning to use an OTT TV service this season. The study, which surveyed consumers in Australia, Brazil, Germany, Singapore, the UK and US, analyzed how consumers plan on watching TV this Christmas, which TV services they prefer and which devices they plan to use. Let’s take a look at how each country compared.
Trends in holiday TV consumption
The UK, US, Australia and Germany are leading the way in planned Christmas TV consumption this holiday season, with the majority watching between 6-20+ hrs of TV per week. While Brazil and Singapore prefer to watch their holiday TV on mobile devices, as 33% of Brazilians will watch on a smartphone and 25% on a tablet. As for Singapore, they are least likely to opt for the traditional TV set and are more likely to watch TV on a laptop this Christmas.
Overall, US consumers have the highest current online video subscriptions (36%), followed by Brazil (29%). These two countries also have the largest number of subscription service considerations for the holiday season and are more likely to consider subscribing to more than one service. Nearly half the Brazilians (44%) and almost a quarter the Americans (24%) surveyed are planning to sign up for Netflix.
Joining in on the merriment
When it comes to reasons for subscribing to an OTT TV service, a rich content library appeals most to those in the UK, US, Australia, Singapore and Germany, while specific content options (e.g. series / show) are what attracts more than half of Brazilians to subscription services during the holidays. US consumers are more likely to see TV subscription services as a good value for the money when compared to the other countries.
Germany (60%) and the UK (61%) report the highest subscription rejection when compared to the other markets. Reasons for not joining in on the steaming TV fun this holiday season include the saturation of current TV options in the UK and US. In Singapore, Brazil and Germany, however, insufficient planned TV consumption, as well as a variety of free on-demand & catch-up services provide less motivation to sign up.
Christmas in July
Subscription retention and churn are big challenges for OTT service providers with many consumers planning to walk away after the holidays. Consumers in Brazil and Singapore are most likely to keep OTT subscriptions for up to 3 months, however 15% of OTT subscribers plan to cancel their services in January with a further 30% churning within 6 months. A focus on improving both content and value are key in retaining Christmas customers year-round.
The complete Paywizard study, entitled ‘OTT isn’t just for Christmas’, is available for download here.