top of page
  • Editorial

Don’t let churn to burn your OTT revenues!

Updated: Sep 1, 2022

The key challenge faced by OTT platforms is of churn, which means subscribers moving away from platform. Read about insights of this issue

Almost all the companies that are directly or indirectly involved in content, broadcast and related tech are jumping on the OTT bandwagon. The latest entrant in India is T-Series and with its massive content library, they are aiming for a big chunk of the market. With too many services available for choice, consumers find it difficult to stick to a single OTT platform. Yes, there are subscribers who opt for multiple OTT services too, but those numbers are not substantial.

Learn about the churn!

One of the key challenges faced by OTT platforms is of churn, which means subscribers moving away from the platform. While the churn affects both AVOD and SVOD platforms, but losing a paying subscriber is a bigger concern and pain. The revenues from ads are far less than from a paying subscriber. Any business would like to have a consistent flow of revenue and increase loyalty amongst subscribers. With so many OTT platforms, subscribers are now spoilt with choices. And with no dependency on device like in case of DTH/Cable, hopping to another OTT platform is much easier. Of all the key focus areas, churn remains on top of the list for almost of the platforms.

Key reasons

While there are multiple reasons of churn including content, tech, pricing, UI/UX and device partnerships, one key factor is the question: - Is it worth it?

There have been multiple studies depicting content and pricing as main reasons which are obvious. For example, Netflix started with much higher rates few years ago and couldn’t find much traction. With the reduced pricing, subscribers have started coming in higher numbers. While Netflix does not share actual numbers, but the estimates are around 4 million.

Now the problem is not as much as pricing for Netflix but the timing. There are multiple OTT services now with pricing offering services from as low as Rs 20 for Ditto TV (and few others at similar pricing or around Rs 50) to highest being Netflix Premium at Rs 649. Almost all the leading 10 OTT platforms have subscribers from few hundred thousand to few millions. The ultimate question from subscribers is then: - Is it worth it?

Content is still the King!

The prime factor is still the quality of content. Shows like Family Man, Scam 1992, Money Heist, Sacred Games, Inside Edge have helped respective platforms to gain tons of subscribers. Content really drives subscribers to stay or come back on the platforms.

Content Roadmap, is it really a thing?

The hype can really create buzz and get subscribers to stick to the platform. After the first season of Money Heist, people were excited to know about the release dates for second season. Social media was abuzz with chatter with memes and fun.

Do not wreck the tech, please!

A flawless service may not be a key driver to get more subscribers, but a bad service is one sure shot of losing few. Streaming, UI/UX workflow, payment process, notifications etc, all must work in tandem and provide error free experience to subscribers. No one like an interruption during a binge watch session.

The base option stays for the longest of time!

The primary goal for an OTT platform should be to formalize a strategy to be the base option for subscribers. It means one service that always stays with the subscriber, even if they are willing to get more subscriptions for other platforms. The combination of content, flawless service and attractive pricing can help the platform to be the base choice. Constant communication can be a game changer too. Interactivity with games, play along, incentives and rewards can help to engage users and help them to stay for a longer period on platform.

40 views0 comments


bottom of page