A new study from market research and consulting company Parks Associates, Data-Based Decision Making for Video Services, indicates that 36% of over-the-top (OTT) video subscribers are considered “service hoppers.” This term refers to customers who have moved between different subscription services multiple times over the course of one year.
That number reached its high in the third quarter of 2019, but dipped back down during the first year of the pandemic as more people were at home and reliant on streaming services for entertainment. However, as of Q3 2021, that number was approaching the pre-COVID high.
Parks Associates finds that as customers move between services, the platforms are looking to increase their control over the valuable data that inherently comes with subscriptions and usage.
“Data collection and analysis offer new ways to attract and retain viewers, optimize revenue, and create new value,” said Parks Associates president and CMO Elizabeth Parks. “Data allows vendors to identify subscribers at risk of churn and can even tag the ‘server hoppers’ who will jump in and out of services no matter what, so that providers do not waste resources chasing them in vain. Advanced data tools help companies make more informed decisions about the content and structure of their services and special offerings.”
One way that streamers are exercising control over the data available from subscribers is by limiting how consumers are able to sign up for their services. From Q1 2020 to Q3 2021 there was a 12% decline (from 41% to 29%) in the number of households subscribing to a service through their official website. Instead, more customers are opting to sign up through aggregators, like Amazon Prime Video Channels.
That means that not only was the service receiving that valuable consumer information, but so was the aggregator.
However, a number of platforms have recently begun to rein in not only how people can sign up for their service, but also where their content can be consumed. HBO and HBO Max were removed from Amazon Prime Video Channels last fall and Disney+ is not available through most aggregators.
There has also been a strategic shift for many companies to regain exclusive streaming rights over their own content and, in turn, the data around who is viewing that content. NBCU has begun moving its television content from Hulu to Peacock and Hulu recently lost thousands of movies to Prime Video and Paramount+.
Not only are these decisions about retaining the full value of a company’s intellectual property, but they are also about taking full advantage of a content library to minimize churn and maintaining control over one of the most valuable assets available in a digital world, consumer data.