A new survey conducted by IBM’s Cloud Video division gauged the behaviors of subscribers to video-on-demand services such as Netflix and Hulu. The most interesting answers were regarding how many people had canceled their subscriptions, and why they had. 31 percent of respondents said they had canceled a streaming video subscription in the past, with users who identified Amazon or Hulu as their primary service having higher numbers (40 percent). In issues that people had identified as leading them to “most likely” want to cancel a subscription, 27 percent said too many ads would be their primary reason to quit, leading just ahead of the 25 percent who said cost, and the 20 percent who said they would quit if there weren’t a variety of show listings.
Trailing behind, 17 percent said they would leave because of technical issues. Digging deeper to the root of the problem, 73 percent of respondents had said that buggering or a delayed start was the most common technical problem they had encountered. Surprisingly, 48 percent of respondents stated that they didn’t share their streaming video passwords with anyone, while 42 percent said they shared with their families. David Mowrey, vice president of strategic planning at IBM Cloud Video, argued that these numbers represent an opportunity for video subscription services. Mowrey said that the survey points to the need for video-on-demand services to use data to better grasp an understanding of their customers.
“All the key questions and results really point towards the value of big data and insights into the behavior of consumers on your service,” he said. “If you’re not looking at the consumer behavior on what devices and what consumers are watching, why are they churning out, why are you acquiring them in the first place, you’re at a huge disadvantage.”
The survey of 1,007 US subscription video-on-demand users was conducted in April.