DALLAS—A new Parks Associates whitepaper has found that consumers have limited loyalty to streaming services, with nearly half (48%) of OTT subscribers hopping between services, outside of Netflix, multiple times over a 12-month period.
The “Optimizing Video, Enhancing Content Performance for OTT Success” whitepaper, released in partnership with SymphonyAI Media, examines the current state of the competitive streaming video market and the benefits of implementing data-driven solutions able to handle today's complex revenue models.
The study is the latest example of how fickle consumers are creating headaches for streamers looking to expand their sub base in an increasingly saturated and competitive streaming market.
“Consumers are experimenting across new services, so content sellers and streaming services must ensure that relevant, engaging content is presented to subscribers,” said Thomas Schaeffer, senior contributing analyst, Parks Associates. “The lack of insight into content performance is a major hindrance to monetization, and the ability to get that insight has implications for an offering's bottom line.”
“The rapid adoption of hybrid ad-supported and subscription revenue streams forces media organizations to reconcile complex data sources, formats, and requirements,” said Mark Moeder, CEO of SymphonyAI Media. “Deriving insight from this new data ecosystem gives content sellers and service providers clarity around the value of the content they seek to monetize.”
The whitepaper also reports 48% of subscribers cited content or a specific program as the primary motivation to subscribe to a new service.
That is making content performance data an increasingly valuable asset as media organizations try to continuously assess, demonstrate, and predict the value of a service’s catalog within the licensing ecosystem, the researchers said.
“Considering the dynamic nature of the media and entertainment industry, content analytics solutions are essential for content sellers and streaming services to optimally monetize content in a complex revenue ecosystem,” said Jennifer Kent, vice president of research, Parks Associates.
This whitepaper is available for download here.
