The streaming panorama is quickly increasing, with over 2,000 streaming providers vying for US customers’ consideration. This surge has not solely elevated content material availability but additionally heightened competitors and subscriber churn. Samsung Advertisements’ information exhibits that, for each energetic consumer on a streaming app, eight customers churned final 12 months. This poses a major concern, complicating media planning and monetization.
Nevertheless, the deal with churn misses the purpose. It’s a symptom of a deeper, extra vital concern. To scale back churn, the trade ought to think about constructing loyalty.
Loyalty is attainable. Samsung’s analysis has revealed a subset of TV watchers dubbed the “Tremendous Loyals” viewers – those that interact with at the least one app for 10 or extra months yearly. Capturing these “Tremendous Loyals” is mission vital, as they account for greater than half of all streaming exercise.
Drawing from Samsung’s current examine, “Streaming’s Loyalty Disaster,” listed here are key methods to activate a extra loyal viewers, boosting each engagement and promoting worth.
Audit viewing habits
Step one is knowing the viewing habits of the “Tremendous Loyals” viewers. Whereas two-thirds of viewers show this stage of loyalty, it’s solely constant throughout two or three apps.
Notably, solely eight of the highest 20 streaming apps can say that greater than 25% of their complete viewers are “Tremendous Loyals.” In contrast, nearly all of app customers are extra aptly described as “rental” audiences at fixed threat of churn.
Notably, “Tremendous Loyals” dominate by way of time spent inside apps.
Use information
Within the streaming world, content material is king, however information guidelines the dominion. Not like conventional TV, the place loyalty was typically pushed by behavior, streaming loyalty facilities round content material preferences. Manufacturers will profit from utilizing instruments that optimize attain information and discover the “tremendous loyal” viewer.
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Select companions that use AI for content material discovery
In keeping with Deloitte, 46% of customers subscribe to a brand new service particularly to observe a single present or film. If a platform can constantly ship related content material to audiences, these audiences usually tend to keep.
To remain aggressive, manufacturers ought to search for companions that use AI to personalize search and discovery, coupled with data-driven media methods to advertise their content material to the appropriate audiences on the proper time, at scale – the strategy we’ve taken right here at Samsung.
Deal with utilization, not simply subscription numbers
Churn dominates trade chatter, however a extra significant metric is app utilization. If customers aren’t repeatedly partaking along with your app, they’re on a quick monitor to unsubscribing.
General, metrics like month-to-month energetic customers (MAU) could be deceptive, as an “energetic” consumer may spend simply half-hour on the app every month and see just a few adverts. Utilization metrics like content material completion charges, peak viewing hours, machine utilization, common view time and complete hours watched are higher indicators of media well being.
Model differentiation is essential
Whereas many customers acknowledge the names of main streaming manufacturers, there’s a major hole in how these manufacturers are perceived. In keeping with HUB Leisure Analysis, whereas most customers are aware of streaming manufacturers, far fewer can confidently articulate what units every aside.
To interact viewers, streaming apps should discover new methods to construct model worth and differentiate by way of content material. Typically, it comes all the way down to making a model character that resonates with audiences and delivering that positioning organically in key moments, akin to when customers are discovering new content material to observe or apps to obtain.
In the end, loyalty will not be uncommon – most viewers are common app subscribers – however it’s scarce. Earlier than the streaming surge, media planning was predictable. That’s not the case.
To seize energetic, constant audiences in right this moment’s ever-changing panorama, the mission-critical metric is loyalty.
