The 2022 report on local video providers shows a loyalty that national OTT operators can only dream of. According to the latest rural video and broadband study, 76% of rural video consumers have had the same service for 3 years or longer. A staggering 33% have been loyal to the same company for ten years or longer.
Churn Burn for OTTs
In a Parks and Associates report for 2021, the subscriber churn rate for OTT’s was a whopping 44%. Intense competition in the space coupled with OTTs cancelling content agreements with each other are some of the reasons, no contracts and cheap promotional offers are also contributors. Subsequently, one strategy has been is to raise prices to make up for the massive churn.