Conversation Rates for Online Paid Subscription Services

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Conversion Rates For Online Paid Subscription Services

According to our research, the conversion rate of paid online subscription services is between 47% and 58%. Nevertheless, 19% of OTT subscibers in the United States still canceled their subscription in 2017 despite the rise in popularity of OTT subscriptions. According to Vimeo, more than a quarter of American households have signed up for free trial after visiting the official websites of Amazon Prime, Showtime, HBO Now, or Netflix. Approximately 58% of American broadband households that signed up for free trials offered by OTT video subscripton services converted into paying subscribers. Additional details are below.


In the United States, around 51 million households "engage in OTT streaming of video content." Nearly 22 million households in the country switched from their Telco, satellites, and cable TV subscription to subscribe to OTT video streaming services in 2017. By the year 2026, it is projected that the SVOD/OTT market in the United States will reach $108.6 billion, growing at a CAGR of 8.3%. Additionally, the market is expected to retain a presence in over 50% of households in the nation by 2026. Netflix is one of the top subscription providers with an estimated 117.58 million paying subscribers globally, as of January 2018. In 2018, Netflix was anticipated to generate $15 billion in subscription revenue.

In 2017, nearly two-thirds (59%) of homes in the United States had "at least one video subscription service" from providers including the following:

As reported by PYMNTS, merchants operating in the SVOD/OTT market surpass the average subscription service feature ratings in most categories. During Q1 2018, SVOD/OTT merchants scored about 80% for free trials, 90% for plan cancellations, 90% in product details, and 95% in messaging.


In the United States, 61% of Millennials own both OTT and TV subscriptions. More than a quarter of households in the country have signed up for free trials following a visit to the site of Amazon Prime, Showtime, Netflix, or HBO Now. Up to 47% subscribed to at least one of the OTT video streaming services mentioned above. More than half (58%) of broadband households in the United States that endeavored OTT video subscription services' free trials converted to paying subscribers. Therefore, offering potential subscribers access to free trials is an efficient tactic to entice them to subscribe to the platform.

Merely 1% of American consumers are deemed "serial trialers" as the majority of households only seek free trials to assist them in determining whether to shift into a paying subscriber. One of the primary reasons that consumers switch to OTT from cable is content selection. According to a report from Vimeo, 60% of households that took advantage of its free trials converted to actual OTT paying subscribers including 69.4% of those on Roku and 59.6% on iOS platforms.


Around 19% of households in the United States still dropped their OTT subscription in 2017. Some of their reasons for canceling include:

Too many advertisements: 27%
Services costs: 25%
Lack of excellent content: 20%
Technical issues: 17%

To maintain OTT subscribers, platforms need to fund original content, offer extraordinary user experience, and provide mobile applications. They could also produce user-friendly and convenient content.


More than 50% of subscribers to OTT services view content on apps. Hence, it is vital for OTT platforms to also provide mobile applications. Over half (58%) of consumers that sign up using the web also attached mobile devices or other mechanisms for their video viewing purposes. Individuals are more likely (33%) to subscribe to a free trial using a mobile app as opposed to the web. OTT customers of Vimeo have witnessed a 72% conversion rate on various platforms including Roku, iOS, and Android.