Parks Associates has released new data via the whitepaper report, AI-Enabled Data: Key to Video Service Optimization, which revealed that 37% of US broadband households that subscribed to a new OTT service in the last year are planning to terminate their subscription because of a lack of new content. The whitepaper report also states that OTT subscriber churn rate is at 44%
The whitepaper was developed in partnership with Symphony MediaAI, and “examines the drivers and use cases for artificial intelligence (AI) and machine learning (ML)-enabled data analysis to address consumer trends in the video services market.” By using ML and AI solutions, content creators are able to identify what keeps their subscribers engaged, which may prevent churn and predict future churn.
“Video services are seeking ways to optimize the performance of their businesses in as many dimensions as possible,” said Paul Erickson, Senior Analyst, Parks Associates. “Data, insights, and actions enabled by the application of artificial intelligence (AI) and machine learning (ML) can maximize their abilities to compete and thrive in the current high-pressure streaming video landscape.”
“The integration of AI-enhanced data is becoming a necessity to be able to compete in a crowded, fiercely competitive video service environment, with numerous competitors vying to capture and retain an increasingly elusive streaming video consumer,” Erickson said.
Also from the whitepaper report, 26% of those canceling an OTT video service report doing so because they had finished watching the shows they liked. The new data comes off the heels of a recent Parks study that concluded 49% of U.S. broadband households have 4 or more OTT service subscriptions.
“Content owners and streaming providers are operating in a highly competitive environment, driven by the multitude of choices available to today’s consumer,” said Mark Moeder, CEO of Symphony MediaAI. “AI and ML-enabled data analysis confer a crucial competitive advantage: the ability to predict, and adapt, to both overarching trends and individual consumer behavior.”