Cost of errors

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Calculate the cost impact of errors

Errors and any other interruptions are one of the major sources of frustration for customers. Vimeo recently released data that says that 6% of SVOD users churn due to technical reasons. So in essence there is a real cost to every error that a viewer on your platform experiences. We made the effort to calculate how costly an error is.


S. Shunmuga Krishnan and Ramesh K. Sitaraman have calculated that “a viewer who experienced failure is 2.32% less likely to revisit the same site within a week”. Based on this research we created the following calculator:

The cost of 1000 errors based on your inputs is


Using Vimeo’s “Technical Churn Rate” of 6% we calculate how much a decrease in errors can prolong the customer lifetime value for this particular churn reason.

Based on the inputs you provided, the lifetime value for the technical churn reason viewer segment can be prolonged by
  1. Formula Cost per AVOD Error: [Plays per Unique] x [CPM] x [Ads per play] x [Recurring viewers] x [% less likely to return]
  2. Formula SVOD rate: ( [# of errors over LTV] - ( [# of errors over LTV] x (1 - [Target error decrease] ))) x [Errors per day] / [LTV]
Disclaimer The Bitmovin Analytics Demo is provided on an ‘AS IS’ and ‘AS AVAILABLE’ basis, and to the fullest extent permitted by mandatory law, Bitmovin will not be liable for any damages whatsoever, including and not limited to, loss of business or profits or any direct, indirect or consequential loss arising from reliance and use of these models where any action taken on such basis is strictly at the user's own risk.
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