As the pendulum swings away from subscription-based models, password-sharing runs amok, a growing number of consumers consider cord-cutting and ad targeting and measurement frameworks see major disruption, the video streaming ecosystem faces a number of ongoing and emergent challenges and opportunities. TransUnionโs Frans Vermeulen spells out four timely opportunities for streaming providers.
When streaming TV first rose to prominence, premium subscription video on-demand (SVOD) services dominated, and content creation and distribution were defining marks of success.
With increased competition in SVOD and ad-supported video on-demand (AVOD) offerings stepping up content libraries and user adoption, premium providers who donโt push past content creation and distribution as competitive differentiations will fall behind.
Building a long-term strategy for both SVOD and AVOD now requires investments in four key areas.
1. Diversify data to move beyond content acquisition and recommendations
Netflix wrote the playbook on using its proprietary ratings, browsing and viewing activity to power its personalization engine and inform content licensing and production decisions. But competitive SVOD services are gaining on Netflix by leveraging their own subscriber bases to generate content insights at scale. Further, per data from Ampere Analysis, streaming providers have collectively broken the $200bn mark on content investments, making it difficult for any company to sustain a business model predicated on outspending others.
Content advantages are also short-lived. In a digital environment, users can easily cancel streaming subscriptions and are willing to hop between providers to watch the latest mega title. Moreover, password-sharing across households is rampant โ especially for SVOD and hybrid ad-supported/subscription services. According to a study by CordCutting.com, 88m streaming accounts are shared, and only 60% of people pay for their own subscriptions. Why…