{"id":17779,"date":"2021-06-30T04:10:14","date_gmt":"2021-06-30T09:10:14","guid":{"rendered":"https:\/\/blog.vplayed.com\/?p=17779"},"modified":"2026-01-05T01:51:05","modified_gmt":"2026-01-05T01:51:05","slug":"reduce-ott-churn-rate","status":"publish","type":"post","link":"https:\/\/www.vplayed.com\/blog\/reduce-ott-churn-rate\/","title":{"rendered":"OTT CHURN: How You Can Improve Retention For Your OTT Platform"},"content":{"rendered":"\n\n\n

Ever wondered how to answer the pressing question of how to keep your subscribers chained to your OTT video platform<\/span><\/a>? <\/span><\/span><\/em><\/p>\n\n\n\n

Walk with me to know more about this article…<\/span><\/p>\n\n\n\n

Customer lifetime value or CLV depends on how good your subscription business <\/span>VOD platform<\/span><\/a> holds them back or rather keeps visiting your website time & again. OTT Churn revolves around this integral aspect. <\/span><\/p>\n\n\n\n

<\/span>What is OTT Churn?<\/b><\/span><\/h2>\n\n\n\n

An OTT churn is usually referred to the number of subscribers who cancel their <\/span>OTT platform membership due to the following reasons for your subscription services. <\/span><\/p>\n\n\n\n

Here the subscriber churn rate depends on the overall target market size that you are focussing on. <\/span><\/p>\n\n\n\n

This is the most crucial factor which determines whether your brands are positively witnessing growth or declining their profitability. <\/span><\/p>\n\n\n\n

There are two types in it: One is voluntary churn & the other refers to involuntary churn.<\/em> <\/span><\/p>\n\n\n\n

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\u201c When we look into the recent statistics of involuntary churn ratio it accounts for 20-40% of total churn.\u201d On the other hand, when we look into Disney+ churn rate it is accounted with 13% whereas, in HBO Max, Apple TV+ & Peacock is found with churn rates of 20% \u201d<\/p>\n\n\n\n

Source: Advanced Television <\/b><\/p>\n<\/blockquote>\n\n\n\n

Looking at this trend has been pushing all kinds of OTT business streamers, to retain its customers. There are some who migrate away from traditional pay-TV services since many of them are enticed with motivational extending subscriptions.<\/span><\/p>\n\n\n\n

Now you must be thinking, \u201chow do I come to know about this factor at all? \u201d & hunt for\u2026<\/span><\/p>\n\n\n\n

<\/span>What does the OTT Churn rate actually mean? <\/b><\/span><\/h3>\n\n\n\n

To explain this further let me illustrate a simple example… <\/span><\/em><\/p>\n\n\n\n

Let\u2019s assume you have an entertainment channel consisting of about 50,000 subscribers and you hold an account of 500K churners in a month. <\/span><\/p>\n\n\n\n

When we calculate, it equates to a 10% churn rate.  The next question arises what can be a manageable churn rate to be a consistent player in OTT<\/a>. <\/span><\/p>\n\n\n\n

Well, I wouldn’t say there is a definite number in which you should be persistent to achieve, but yes, it’s vital to compare your turnover rate with your top competitors and industry averages on a frequent basis. The majority of established OTT brands have substantially lower attrition rates than 5%. <\/span><\/p>\n\n\n\n

For example, Netflix used to have a turnover rate of less than 1% a month. However, recent data indicates that even the big players are beginning to wrestle in this rapid race of OTT.<\/span><\/p>\n\n\n\n

Now, let me give an idea for you to count on all these factors of churn rates & how you can leverage them! <\/span><\/p>\n\n\n\n

<\/span>How to calculate my streaming platform\u2019s churn rate?<\/b><\/span><\/h3>\n\n\n
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\"Calculate<\/figure><\/div>\n\n\n

Here is an interesting way to help you with it, further… <\/span><\/em><\/p>\n\n\n\n

If you have created video streaming platforms<\/a>, you can calculate your <\/span>video monetization platform<\/span><\/a> charges based on each subscription model and its business type. <\/span><\/p>\n\n\n\n

After that, you can easily know it by<\/span><\/p>\n\n\n\n