Subscription video on demand providers need to keep an eye on the "extremely high" churn rates endemic to the OTT video market segment, a new report from Parks Associates has found. In the past 12 months, 7 percent of U.S. broadband households have cancelled their Hulu Plus subscriptions, a number that represents about half of Hulu's subscriber base.
BOSTON--Cable operators that integrate Hulu's over-the-top video service into their lineup will get, in return, happier subscribers who are much less likely to churn. At least, that's the value proposition put forth by Hulu's Jim Galley, director of the company's distribution and strategic partnerships, in a panel session at The Independent Show here.
Seeking to keep its much larger SVOD rival, Netflix, within shouting distance, Hulu is contemplating the inclusion of a higher-priced, ad-free service.
Hulu has been on a tear for the last few months when it comes to locking in exclusive deals for older TV content like Seinfeld, guaranteeing that it will have sought-after series for several years to come. But what happens after those deals expire? Hulu had better have some more good cards to play, because content-hungry competitors are storming in.
Showtime has debuted its standalone OTT service, eponymously named Showtime, a few days early of its previously stated July 12 target launch date.
While SVOD platforms like Netflix, Hulu and Amazon Prime Instant Video have been lauded for easy, immediate customer sign-up processes, the fact that exiting these services is just as convenient results in churn that is significantly higher than what is found in pay-TV.
Online video startup Pluto TV has signed a distribution deal with Hulu that will make all of Hulu's free, ad-supported content available on its website.
Hulu is continuing its bid to be a one-stop service for exclusive TV series and movies by announcing a content partnership with Showtime that will enable Hulu subscribers to sign up for the premium network's online service for considerably less than Showtime's standalone monthly rate. The move could be the first big cannon shot in a potential SVOD price war.
Hulu will begin offering Showtime's new stand-alone streaming service for $8.99 a month, a 20 percent discount from the standard price, starting ahead of the July 12 premiere of Showtime signature series Ray Donovan and Masters of Sex.
Add one more study to the litany of cord-cutting woes faced by pay-TV providers. According to a new Digitalsmiths study, 32.4 percent of current cable, satellite and IPTV subscribers say they're "on the fence" about keeping their service and would need enticement to stay. And consumers are increasingly aware of the expanded OTT options available to them, such as Sling TV, making for interesting times in the cable biz.