Lately, the world of OTT platforms has been booming. Did you know that the number of subscribers worldwide is 3.9 billion, according to Statista? In fact, the revenue from OTT (Over The Top) platforms is expected to hit a whopping figure of US$215 billion by the end of 2029. 

And certainly, the competition to capture the market is more intense than ever! But the truth is—running an OTT business is beyond just uploading good content. Rather, it's about figuring out your target audience and resorting to data-driven actions rather than blindly following the trends. In fact, it is essential to keep track of key OTT subscriber growth metrics when it comes to truly standing out in this fierce and dynamic landscape.

So, what do OTT metrics actually do? These metrics portray a clear picture of your platform and help find out what’s working and what’s not, what needs improvement, and how you can scale your OTT business effectively. 

Irrespective of whether you’re a seasoned player in the market or have just started your journey to the OTT scene, the fact is—monitoring these growth metrics can truly make or break your growth.

Read this article below to explore the OTT metrics for subscription businesses you need to track growth and how these can help you sustain in this competitive market.

What Are OTT Subscriber Metrics?

OTT subscriber metrics are basically the elements that help you understand viewer engagement, user satisfaction, and revenue generation. 

Are your marketing campaigns worth it? Are your viewers happy with the content? Or are you retaining subscribers long enough for enough profitability? Analyzing these growth metrics answers it all!

These metrics are nothing less than a secret behind your long-term success in the streaming industry. From analyzing content popularity to measuring acquisition rates, the OTT subscription business growth metrics align you with the audience’s needs and preferences. 

After all, almost 90 percent of streaming success stories lie in a good understanding of your audience and user behavior and, of course, making the right decisions at the right time.

8 Key OTT Subscriber Metrics

Tracking the right OTT subscriber metrics is easily comparable to a cheat sheet for your platform’s performance and growth. Here are the top eight growth metrics for subscription businesses and OTT platforms you must know about.

Subscriber Acquisition Rate

Subscriber acquisition rate basically measures how effectively you are attracting new users to your platform. So, if you’re gaining 10,000 users every month, that’s a good acquisition rate. 

Additionally, tools such as promotional offers, social media advertisements, and referral programs can further drive these figures up. Truly, a high acquisition rate is often a reflection of successful marketing campaigns.

Churn Rate

Churn rate reflects the percentage of subscribers that are leaving your platform. So, a lower churn rate reveals higher user satisfaction alongside effective engagement strategies and vice versa. 

The next time, you notice a high churn rate and that a significant portion of subscribers is leaving lately, it's high time to understand the reasons. 

Simultaneously, approaches such as actively collecting feedback and offering discounts and loyalty rewards can significantly help retain the users longer.

Activation Rate

The activation rate usually measures how many subscribers actively use your platform after signing in. 

So, if you notice just 60 percent of new users logging in within the first week of sign-up, you might need to show more engaging recommendations or improve onboarding. 

This is where the role of personalization is quite big. Leading platforms such as Amazon Prime Video witness a high activation rate because of their personalized watchlists.

Average Revenue Per User

ARPU, or Average Revenue Per User, calculates the revenue earned per subscriber over a specific duration, which basically reflects the effectiveness of your pricing strategy. 

By introducing premium tiers, bundling services, and offering add-ons, the platforms can effectively add up to their ARPU.

Lifetime Value (LTV)

LTV, or lifetime value, measures the total revenue that a subscriber brings throughout their session on the platform. For example, if an average user subscribes for 12 months at $10 per month, the LTV is $120 per month. 

A high LTV reflects a loyal user base and an effective retention effort. 

Want to boost the LTV? Enhancing user experience while providing consistent, valuable content is the key.

Content Consumption and Popularity

When it comes to understanding which shows or genres your audience loves, the content consumption metrics are there to guide you. 

In case your data analytics reveal that almost 40 percent of the total watch time is contributed by comedy series, you probably know where to focus your future investments. 

In short, the ultimate secret to high content consumption is creating content that your viewers engage with more.

Retention Rate

Retention rate is the exact opposite of churn rate—it monitors how many subscribers stay on your platform over a specific period of time. A retention rate of 70 percent over six months reflects a strong and loyal audience base. 

One of the reasons behind the high retention rates of platforms such as Hulu is that they constantly release new episodes and exclusive content to keep the subscribers engaged.

Engagement Metrics

Lastly, engagement metrics such as average session duration and frequency can help you understand how deeply your audience is engaged with the platform.

In case a user spends more than two hours in a day, that’s a sign your platform has a high engagement. These OTT growth metrics are essential when it comes to understanding user behavior and redefining your strategy accordingly.

Why Do OTT Growth Metrics Matter?

If you think OTT subscriber metrics are probably numbers, you’re perhaps wrong! These are, in fact, the secret sauce to your platform’s success while helping you understand your audience and optimize your operations to drive growth. Here are a few reasons why OTT subscriber metrics really matter.

A Subscriber-Centric Platform

With these metrics, you can understand the behaviors and preferences of your viewers. So, in case the data reveals that action movies are the most consumed genre on your platform, you can focus on producing or licensing more of them. 

In fact, leading streaming and OTT platforms, such as Netflix, use this data-driven approach to show targeted recommendations while improving user satisfaction and retention rates.

Improving Retention and Reducing Churn

One of the biggest concerns in the OTT industry is churn. Therefore, it's essential to understand why users leave—whether it is due to pricing, lack of variety in content, or technical issues. This understanding lets you address these pain points more effectively. 

Did you know, even the latest study has revealed that nearly 64 percent of users churn because they cannot find the content they enjoy anymore? In short, data-driven actions are the key to improving user satisfaction and loyalty.

Boosting Revenue Potential

OTT growth metrics, including ARPU and LTV, let you access the financial health of your platform. On the basis of these, you can analyze your pricing strategies, promotional offers, and subscription tiers. 

You can even consider introducing premium features, such as ad-free and exclusive content, to boost ARPU without turning away the existing price-sensitive users. 

Strategic Content Investments

The truth is—not every platform performs the same. Therefore, content consumption metrics can actually help you identify the genres you should spend your budget on. 

So the next time you notice a low viewership on a series despite heavy marketing, it's probably time to revise your content strategy. After all, aligning investment with the content is an essential aspect if you want to see higher profitability.

Scaling Up With Forecasting Trends

Did you know that you can actually predict future trends by tracking consumption patterns and subscriber growth? In case the analytics reveal a growing interest in documentaries, you know it's time to tap into these niches. This way you can scale your platform and stay ahead of the growing competition. 

Why Enveu is The Leading OTT Platform?

With advanced analytic tools, Enveu is exclusively designed for OTT businesses seeking to leverage data for growth and success. It features an extensive suite of user-friendly features so you can make the perfect decision for your platform effortlessly.

Here’s what makes us the best choice for your OTT business.

• With real-time analytics, you can instantly tap into key metrics, including subscriber growth, retention, engagement, and more.
• Easily visualize the data that matters most with custom dashboards.
• Track performance for individual shows and genres.
• Seamlessly integrate your existing system for a hassle-free setup.
• Enable personalized marketing and engagement campaigns for a higher user satisfaction.

Why Choose Us?

Whether you’re an established giant or have just set out to explore your OTT journey, Enveu offers a scalable solution that grows with you. From optimizing user experience to maximizing profitability, Enveu lets you access everything you need to succeed in the OTT industry.

It’s time to take your OTT platform to the next level! Contact Enveu today and turn your vision into reality.