The Risk of Low Subscriber Satisfaction And Engagement

Dimitar Serafimov| Thu Feb 14 2019 CET| OTT Industry

As more and more people migrate towards the innovative convenience and wealth of choice that OTT subscription models provide, the competition has never been more fierce.

Studies suggest that by 2020, customer experience will surpass price and product as the key brand differentiator – and OTT services are no exception.

To compete today, you have to provide a seamless customer experience, keeping your subscribers satisfied with your service throughout their journey.

But, regardless of the efforts you make, there will always be some unhappy people in the pack, and here are the three key drivers of customer dissatisfaction and ultimately, churn:

  • Difficulties with payment.
  • Engagement with the platform and content.
  • Customer satisfaction levels concerning platform and support reliability & efficiency.

In this video, Jason Wong speaks about all the factors that cause subscriber churn. Take a look!

The DirecTV Now case

Now, concerning churn and customer dissatisfaction, one story that has recently caught our eye is the plight of DirecTV Now (pure-play OTT service). Recently, the once prosperous provider plummeted from 1.86 million subscribers in Q3 of 2018 to a mere 1.59 million in the following quarter – a significant loss in anyone’s book.

So, what was the issue? Well, in short, the driving factor behind this dip in audience boils down to the rather un-magic combination of pricing, engagement and customer satisfaction.

Six months before the drop, DirecTV had around half a million subscribers on highly discounted offer, at a price point of approximately $10 per month. At the end of the year, barely any of the customers on these tariffs stuck around.

According to Rethink Technology Research, quashing these promotions for low value, high churn subscribers elevated subscriber losses, but, strangely, this trend had a positive impact on streaming ARPUs. In fact, DirecTV Now average revenue per user rose to around $10 sequentially from Q3.

What we can learn from these findings in general, is that rather than attempting to snag droves of subscribers through low-value initiatives, you will benefit far more in the long run from focusing on the three aspects of customer churn, drilling down into the value and usability of your service rather than luring people in with cheap deals alone.

Value and quality equate to success in today’s OTT world – invest in these areas and success could well be yours this year, and beyond.

To delve deeper into these three key OTT customer churn factors, read our full churn predictability post or

Learn more about you can stop OTT subscriber cancelations:  

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