READ MORE: The Future of OTT Aggregation (Interpret)
Streaming consumers are crying out for one platform to aggregate their content options, but SVODs are reluctant to pool their data goldmines.
A third of consumers are looking for a way to manage and search for all available content from one place, according to a new report, “The Future of OTT Aggregation,” by media analyst Interpret.
A fifth of respondents say they are already subscribing to too many video streaming services.
“Addressing fragmentation will be tricky since there are so many service options, each with its own priorities relative to revenues, data, and audience. Yet, the companies that solve the aggregation puzzle have much to gain,” says Interpret’s Brett Sappington.
Successful aggregation of content and services will produce “an improved, sticky customer experience” to drive subscription and ad revenue opportunities.
“It will also be important to mid-sized or smaller streaming services that cannot afford to out-market global or regional streaming giants,” Sappington says.
Meanwhile, churn remains at an all time high. Fierce Video reports on a new study from Parks Associates that finds that 36% of OTT subscribers (or 32 million US households) are “service hoppers” — OTT subscribers who have switched between services and resubscribed to services multiple times in the previous 12 months.
Data and analysis is the key to boosting customer retention and managing churn, says Parks Associates CMO Elizabeth Parks. It’s the reason why Netflix, Disney+ and HBO Max are not available through Amazon Prime Video Channels, a platform that boosts distribution but adds a middleman.
“Data allows vendors to identify subscribers at risk of churn and can even tag the ‘server hoppers’ who will jump in and out of services no matter what, so that providers do not waste resources chasing them in vain,” she says. “Advanced data tools help companies make more informed decisions about the content and structure of their services and special offerings.”
Big content spends, tapping emerging markets, and automated versioning: these are just a few of the strategies OTT companies are turning to in the fight for dominance in the global marketplace. Stay on top of the business trends and learn about the challenges streamers face with these hand-curated articles from the NAB Amplify archives:
- How To Secure the Next Billion+ Subscribers
- Think Globally: SVOD Success Means More Content, Foreign Content and Automated Versioning
- How Does OTT Gain Global Reach? Here’s Where to Start.
- Governments Draw Battlelines To Curb the US Domination of SVOD
- Streaming Content: I Do Not Think You Know What That Word Means
There are signs that consumers are taking matters into their own hands. Fewer of us are signing into major SVODs directly on the streaming service’s website, and are instead logging on via streaming media players, gaming consoles, set-top boxes and smart TVs.
“Most aggregation providers are focused on front-end content interfaces and discovery tools,” says Sappington. “There is potential to offer significant differentiation through portfolio and payment management tools.”
Consumers expect financial value from any bundled offerings, but also derive increasing personal value from offerings that eliminate pain points in the subscription (and cancellation) process, the analyst said.
However, “content providers are hampering progress in aggregation because they are fighting to retain control over their own parts of the content journey (and related data collection and advertising opportunities).”
If service stacking and churn continue to block SVOD growth then at some point they may have to blink and team up with a distributor, potentially paving the way back to the cable bundle.