NAB
Streaming consumers are crying out for one platform to
aggregate their content options, but SVODs are reluctant to pool their data
goldmines.
Article here
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.”
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.
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