According to Parks Associates, 58% of U.S. broadband households who trial an OTT video subscription service convert to paying subscribers. The research house says the conversion rate from free trial to paying subscriber is higher among consumers who trial multiple services.
"Some OTT providers have expressed concerns that consumers might be churning through trials to avoid paying. While some trial abuse likely occurs, the high rate of conversion suggests that most users are actively evaluating for genuine adoption," said Brett Sappington, senior director of research at Parks. "Among users trialing three or more services, almost 80% subscribe to at least one of the services that they tested."
"Free trials are an established and effective part of the OTT landscape, but as they become a commoditized offering in an increasingly crowded market, services will experiment with the model to make their service stand out," Sappington said. "For example, Sling TV recently began allowing non-subscribers unauthenticated access to limited content, essentially a pre-trial opportunity that encourages viewers to begin an actual trial."