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Churn Rate

Churn refers to the rate at which users cancel or stop using a particular service. It is typically measured as a percentage of the total number of users over a specific period of time.

To figure out your churn rate, follow these simple steps

  • Know how many customers you had when the time period (like how many customers you had at the beginning of  a month or a year).
  • Find out how many customers you lost during that time. (how many customers you lost in that month or  year)
  • Divide the lost customer number by the initial customer count.
  • Then, multiply the result by 100 to get your churn rate percentage.

Churn is an important metric for OTT businesses, as it can have a significant impact on revenue and profitability. High churn rates can indicate that users are not satisfied with the service or are finding alternative options, which can lead to a decline in revenue and profitability.

There are a number of factors that can contribute to churn in the OTT industry, including the quality and availability of content, the user experience, the pricing and value proposition of the service, and the competitive landscape.

To reduce churn, OTT businesses can focus on improving the quality and variety of their content, enhancing the user experience, and offering competitive pricing and value propositions. They may also implement customer retention strategies, such as offering incentives to encourage users to continue using the service.


Anjana Devi

Anjana Devi