Dimitar Serafimov| Tue Jan 31 2017 CET| Industry insights
The world is going OTT, cable cutting is on the rise, and for content providers, there’s never been more scope for attracting and retaining loyal subscribers.
Now, before we delve any deeper into the matter, let’s consider why brands, networks, businesses and organisations offer OTT services.
This chart from Unisphere sheds more light on the subject.
As you can see, attracting and retaining new subscribers is the most important reason for offering an OTT service, closely followed by distributing new content and increasing profitability.
Another interesting insight from the study comes in the form of OTT service decisions and how the differ between in Europe, as well as a global scale.
It seems that while 22.9% set up services to attract a fresh customer base in worldwide, while in Europe, 19.8% launch OTT services for the same reason – a slight difference in percentage between the two regional respondents.
In Europe, more people choose to provide OTT services to combat OTT upstarts and similar competition than on a global scale. In fact, 6% offer OTT services as a form of combat globally, while 11.8% do so in Europe.
And here is a snapshot of those looking to attract and retain subscribers based on respondents from Europe, North America, and the rest of the world:
Increasingly, SVOD services are attracting loyal viewers who are more than willing to pay for premium video.
Take Netflix for example. Once a mere movie-streaming platform, the service has now evolved into a global internet TV giant. Part of Netflix’s appeal is that it releases a complete series in one batch, enabling the ability to binge watch full seasons of TV shows, therefore, enticing viewers to return, in turn forging long-lasting loyalty. In fact, Netflix alone is so popular that an Ampere study discovered the average user watches the service two hours per day.
Also, Ampere’s consumer survey shows that in countries such as the US, UK and Germany, SVOD households are approaching two SVOD services per home – they are literally doubling up. What’s more, it is predicted that 53% of Americans will subscribe to at least two SVOD services by 2018.
Clearly, when it comes to attracting and retaining a large volume of loyal customers, OTT delivers in spades.
While to an extent, OTT services may speak for themselves regarding retaining customers, it’s still important for a content provider to take certain measures to ensure consumer loyalty.
One of the biggest challenges facing OTT providers is the fact that a large amount of content is time sensitive meaning that customers may only need a service for three – six months before cancelling.
Another key issue comes in the form of adding unique user value without disturbing the service and driving consumers into the arms of another provider – a technique challenge that must be prioritised to ensure a flawless video experience.
All in all, it seems that customers are looking for quality service at a fair price point that is riddled with bugs.
Despite tremendous advancements in the world of OTT, to thrive, survive, attract, and retain in today’s climate, it’s essential to offer value for money, quality content, and an excellent user experience – the rest should come as a bonus.
Learn how you can build a superior OTT service in a competitive space: