Study: 43% of OTT apps abandoned 1 month after download

Some 55 per cent of US households subscribe to at least one streaming service, according to findings from Deloitte, and ESPN+ is the latest example of the rising popularity of OTT, having garnered over 1 million subscribers within the first five months.

But many of these apps experience an unusually high churn rate, according to CleverTap, a mobile marketing and user engagement platform, which has analysed the OTT apps space by reviewing data points across 100 million devices. The report – Industry Benchmark Report for Media and Entertainment (OTT) Apps – which examines performance metrics from some of the most successful media and entertainment apps, found that 43 per cent of all apps are abandoned just one month after download.

Other key findings include:

– OTT applications experience 67 per cent churn within the first two weeks;
– Conversely, only 26 per cent of new OTT app users engage media at least three times within the first month.
– Bringing insights from 8.7 billion data points, the report helps growth marketers benchmark against some of the most successful apps in the OTT industry.
– The report also includes proven strategies and best practices to help OTT companies optimise their content offerings.

“There’s intense competition in the OTT space, and thus the need to differentiate the offering with exclusive content and a superior customer experience becomes all the more important,” advised Almitra Karnik, Global Head of Marketing at CleverTap. “CleverTap’s OTT Benchmark Report provides the essential metrics that mobile marketers can use to benchmark their app’s performance and use data-backed #CleverTips to help engage customers at each stage to grow their app’s revenue.”

“It is fundamental for marketers to monitor the user journey while analysing OTT app’s performance,” asserted Elliot Goldwater, Director, BD & Partnerships at SendGrid – one of CleverTap’s email delivery partners. “Unless monitored end-to-end, key issues can get overlooked. CleverTap’s Industry Benchmark report enables marketers to look at this complete picture, keeping the user at the centre. Along with benchmarks for essential metrics at each lifecycle stage, it provides benchmarks for the percent of users that advance to the next stage, and in how long. These metrics make the report unique — and necessary for every data-driven marketer to have.”

Apps Will be Dead in 5 Years.

One big issue was hanging over this year’s Web Summit, it’s the sudden decline of apps, which casts a cloud over the optimistic pitches that tech companies like to tout with every mobile release.

As Recode reported, the average American smartphone user now downloads zero new apps each month. New apps aren’t the only ones taking a hit. Downloads of the 15 most popular apps are down 20 percent year over year as well.

However, apps in developing markets have avoided such a fate. India’s Hike Messenger, for instance, has grown to 100 million users over the past few years, and over 90 percent of its users fall between the ages of 15 and 24. It’s the messaging world’s latest unicorn, valued at $1.4 billion after a recent $175 million venture round led by Chinese digital giant Tencent.

“All apps will be dead in five years.”

At the helm of Hike is 28-year-old Kavin Bharti Mittal—the son of Sunil Bharti Mittal, founder and chairman of Bharti Enterprises and the 13th richest man in the world. During an interview with me on stage at Web Summit, Bharti made a surprising prediction about the global app ecosystem: “All apps will be dead in five years.”

Mittal sees apps as a fragmented system that’s quickly going out of style. “The most natural way to interact [with a brand] is like this, just as we are now,” he said.

It’s Friday, November 2, 2018. You’ve just walked into your kitchen after a long week. “Play Etta James,” you say. “At Last” starts playing throughout the house. Your phone vibrates in your pocket; a notification on the screen reads “Return flight to Toronto now £220 per person. Book?” You type “Yes” and confirm your identity using the phone’s thumbprint reader. You open the kitchen cupboard and scan for ingredients to cook before returning to your phone and entering two emoji: pizza, wine. Twenty minutes later, the doorbell rings.

Think of the last interaction you had with a software application. You likely used a mouse, keyboard or touchscreen to navigate a series of options to complete a task. In doing so you were forced to follow the rules of software laid down more than 30 years ago; it is the software that dictates the rules of engagement, not you. Now, thanks to bots, those rules are changing.

In other words, instead of using different apps to do different things, we’ll simply start interacting with our favorite companies through a central messaging system that allows us to conversationally ask for what we want.

This forecast jives with Facebook’s plans for Messenger, which could transform e-commerce through “social commerce” that lets consumers make purchases with a more natural approach (think: “Send me three more shirts like the one I just bought”) rather than laboring through an arduous online checkout. Companies like KLM Airlines have already run successful e-commerce trials through Messenger. In China, Tencent’s WeChat has become a replacement for the entire web, allowing users to shop, order food, and hail ride shares.

Before long, the cliché “There’s an app for that” may soon be succeeded by a different retort: “That’s so 2016.”

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https://contently.com/strategist/2016/11/08/hike-founder-apps/