There are many elements to the SVOD experience that make it compelling to consumers. Among the most important is that even though they may have cancelled, they still believe they are a customer!
In this 5-minute lecture delivered at the TV of Tomorrow Show on June 7th Andrew Burke, Chairman of Paywizard, defended the proposition “If you love your customers, set them free!”. He presented data from an extensive survey and in-depth one-on-one customer interviews designed to illuminate the SVOD mystique.
Mr. Burke begins the lecture with data that shows that fully half of people that sign-up for SVOD service do so believing they will cancel it within 6 months. This reveals the attitudes to SVOD are vastly different to pay TV, where people often stay subscribed to the same service for decades.
Mr. Burke continued to elaborate on the feelings and attitudes of consumers toward SVOD. Things people are looking for include:
- A free trial period
- Clear and simple terms
- A simple and accurate bill
- Make it easy to leave
- Recognize a returning user
The data highlights a very interesting fact about online video consumers. Roger Lynch, head of Sling TV, said that when a consumer cancels service the company still thinks of them as a customer, even though they aren’t paying anymore. It’s clear from the Paywizard data that consumers think of themselves this way too. When they cancel a service they want it to continue to recognize them as a customer.
Chapter 1: Introduction (0:40)
Chapter 2: Churn in SVOD services (0:57)
Chapter 3: Elements of the SVOD experience (2:30)
Chapter 4: What really counts in SVOD (4:40)
Chapter 5: Recognize me when I come back (5:40)
Chapter 6: Churn rate of “free-trialers” (7:00)