Audiences are more powerful than they have ever been in terms of putting together and altering their entertainment schedule. Is it possible for streaming video services to combine excellent content, data insights, and membership benefits in order to retain consumers over the long term?
Despite the fact that the transition to streaming video services seems to be unavoidable, the media and entertainment business is undergoing enormous transformations that affect more than simply distribution and engagement. One of the most successful company models looks to be on the verge of being phased out. For decades, pay television delivered by cable and satellite has enjoyed profit margins comparable to those achieved by energy corporations. 1 Recent year, however, have seen an increase in the number of their viewers opting to cut the cord and subscribe to subscription streaming video services. The traditional margins supported by pay TV subscriptions and advertising revenues have been challenged as a result of this process, and they may not be sustained by the next generation of media and entertainment platforms. 2
Big Data and OTT Content
The way we consume and engage with the material now is vastly different from the way we did a decade ago. The rapid expansion and adoption of over-the-top (OTT) and media streaming services, as well as the spread of high-speed internet and the proliferation of smartphone culture, have all had an impact on watching behaviour. Our material may be accessed at any time and from any location of our choosing, and for the first time, we can see a whole generation of “Cord-Nevers.” A group of individuals who have never had access to commercial cable television service and are solely familiar with the world of streaming video material.
It is now more important than ever to take advantage of the growing OTT industry and VoD (video-on-demand) business, which is expected to expand yearly by 13.6 percent (CAGR 2021-2025) and generate million this year. But how do you do it?
To distribute video content to its customers, broadcast media firms build over-the-top (OTT) applications; however, as the industry evolves, competition will become greater. Customer attrition, for example, has risen to become one of the most serious difficulties for OTT firms in recent years. The ability to switch from one service provider to another is rather simple if one does not provide the desired experience for the viewer. As a result, guaranteeing that their client base has the maximum possible customer lifetime value is tough for them.
Because there are so many new providers entering the market, over-the-top (OTT) providers must create tactics to encourage viewers to continue using the service beyond their first watching experience and to become lifetime clients. For broadcast media organisations to be successful, they must have a mix of interesting content, an intuitive user experience, personalisation, and the integration of data and technological advances.
Big Data and Analytics Have the Potential to Transform the OTT Industry
These services must enhance the user experience by offering relevant and interesting content in order to reduce audience churn as a result of the growing overlap of content across all of these channels. Personalization of content is thus essential in order to increase viewing duration and increase the market share of a product or service.
The key to a successful OTT service begins with a thorough awareness of the client and the ability to adapt to their requirements as quickly as possible – whether it be in terms of content, user experience, or revenue model.
OTT managers must turn to big data and analytics to allow meaningful learning of consumer behaviours and the management of business rules, given that the ‘viewer’ is at the centre of the big data consulting company.
1. Understanding the reasons behind customer turnover
Today’s OTT viewers have a plethora of options. The market is becoming more congested. Along with the increase in the number of OTT players, the number of service providers available to customers is also expanding.
2. Personalizing content and user experience
Viewers of over-the-top (OTT) entertainment want personalised, relevant, and contextual material. OTT has already reached mainstream status, and users expect a large amount of material across a variety of platforms.
3. Increasing the viewer’s satisfaction
Understanding the intricacies of user behaviour that are specific to a particular place, as well as collecting insights into device demographics and platform architecture, becomes more important as OTT providers pursue worldwide audiences. It is also becoming more important to collect precise real-time data across live and on-demand services in order to optimise the consumer experience and remain on top of the OTT game.
The ability to decipher customer behaviour and optimise omnichannel marketing efforts in order to explore better business direction, garner personalised insights through segmentation and predictive modelling in order to boost operational efficiency, and extract value from large amounts of data in order to make smart decisions is critical to the success of any OTT solution. It should also be capable of automating data aggregation and providing us with the ability to make better judgments.