4 Ways to Reduce Your OTT Churn

Rishabh Jain Jul 25th, 2022


In the old days of cable and set-top boxes, when a customer wanted to cancel their subscription they had to jump through several hoops for it. It was a common sight to see a customer haggling with a customer service representative who would try their best to keep them from canceling. In some cases, equipment would have to be returned to the physical store where the employees would try their hardest to keep the customer from dropping their subscription. But in today’s OTT world, the agency of disabling a service has been given to the customers who can initiate it in a matter of a few clicks. By giving this kind of easy access to cancellation, video-on-demand companies have to invest in effective strategies that prevent a customer from hitting that ‘cancel subscription’ button and therefore avoid churn.

It’s quite tricky to exactly figure out why an individual might cancel their subscription. When a churn is voluntary, ie. when a customer decides to actively cancel their service, although the reason may not be specific, it generally implies that there is something that the customer is dissatisfied about or doesn’t find enough value in your service. According to a Wall Street Journal report, 50% of subscribers lose interest in a service after a much-awaited TV series or sports season ends (Source). But that is just the tip of the iceberg. Low churn rates increase customer lifetime value and that is why it is important more than ever to reduce OTT churn rate and incentivize revenue. Let’s look at some ways on how you can tackle OTT churn rate.

Involuntary Cancellations

When a customer unintentionally or accidentally loses access to your service, there’s been an involuntary cancellation. This is normally the case when a customer forgets to update an expired payment method, loses their payment card or faces an online payment failure. An IBM survey revealed that 16% of an overall churn rate is due to an involuntary cancellation (Source). The easiest way to address this is by automating the invoicing process end-to-end. Alerts can be sent to the customer when a new payment is due or about a complication concerning the same. Enveu’s digital engineering services are designed to build seamless processes. They will double down on this concern and implement the most cutting-edge digital tech to reduce involuntary churn.

The Problem with Price

If your over-the-top platform is priced higher than your competitors, you need to show for it. A 2019 PwC survey pointed out that 20% of the customers who canceled their subscription found the service too expensive (Source) So always focus on properly communicating the value your OTT platform brings to its customers. Push notifications through email or inside the app are ways in which the customer can be reminded about it. Also, remember to constantly analyze your competitors and compare prices so that you are on par with the way the market price is evolving.

Making Content Count

Today’s consumer is demanding and he does not want to settle for anything less than the best. In this context, the consumers are hungry for content that breaks the monotony of a viewing pattern they may have formed. One of the ways to keep them engaged is to create content that is aligned to the users’ requirements and preferences. You have no other choice but to periodically expand your content library because if the customer has used up all of the content options, they will be tempted to abandon your service. Netflix releases over 700 original titles every year along with regional content. Between 2019 and 2020, Netflix subscribers grew by 98 million because of regional content (Source) Similarly, Enveu offers expert content services that can assimilate your content requirements based on your audience’s viewing habits and recommend a strategy forward.

Build A Memorable Experience

When a customer develops familiarity with your content library and viewing experience, the intrigue is lowered because of which they will end up spending less time interacting with the application and eventually bow out. It is one thing to keep your OTT engine up-to-date but it is also another to keep surprising your customers with new features that will make them curious and therefore spend more time on the platform. The best way to guarantee a satisfied customer and prevent churn is to design an app that they will love to use. Take the help of an expert such as Enveu to craft out the perfect product design.

Nurture New Subscribers

Statistics point out that some of the churn that occurs early on after a subscription is because the customer does not know how to get started. Especially when there is an overwhelming barrage of the content offered, the customer is likely to feel stumped and not interact positively after logging in. It should be like an onboarding experience where the new customer is nicely directed towards something relevant that they would prefer to watch.


At the end of the day, your goal must be to convert happy customers into loyal ones. Happiness comes and goes but loyalty lasts a lifetime. But of course, the way to get to a happy customer in the first place is to make their experience a priority in every area of your OTT platform. This relationship between you and your customer is one that will get stronger only over time. Take the assistance of a tech partner like Enveu right away and reduce your OTT churn rate like a champ.

Rishabh Jain - Director, Product Development, Enveu
Rishabh Jain is one of the co-founders and heads the Product Development at Enveu. A tech evangelist and deep tech advocate, he has been working in the Technology space, being part of many Big Data and IoT initiatives for over 10 years.

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