Free streaming platforms are facing challenges in the face of increasing discretionary spending as it is declining and rate of churn increases. Customer Value Management campaigns will be a key factor in 2021 to reduce churning and improve retention.
Free streamers are able to monetize their content through selling merchandise such as mousepads and the flixer t-shirts. Customers comment on the items during the stream, which gives e-tailers an opportunity to gauge the interest of their products.
Users retention and acquisition
To keep customers loyal, the industry is faced by a variety of challenges. Certain streaming services charge annual subscription costs that could be costly for customers who don’t have enough money to pay for multiple subscriptions.
Certain streaming platforms offer special experiences that can help with the issues. This can be exclusive content for the service or even features to make watching videos on mobile devices easy.
Streaming services may also have unique pricing. These pricing options are able to keep consumers engaged and committed. Netflix is one example. It offers no-cost subscriptions and Disney+ offers bundle packages. Another way that streaming firms are able to target their customers is by focusing on specific demographics. This can be done based on gender, age or interest. Quibi can be an example. It is a video streaming service aimed at teenagers. It helps to differentiate Quibi from other streaming services.
Content quality and diversity
An extremely fast data connection is required to stream videos. In particular, 4K videos with higher resolutions require more data connection. It can result in streaming becoming expensive.
During economic uncertainties, some customers may also be paying lower prices for streaming services. As a result, many are turning to social media to request that streaming service providers lower their rates or provide gratis streaming content for COVID-19.
Structural diversity refers to the promotion of a variety of viewpoints or sources that a media company. It can be measured through the variety or number of media outlets covered and then analyzed in depth. Additionally, it encompasses more complex measures, such as ideologic diversity. It’s difficult to find a common framework that encompasses the entirety of diversity in media. Certain areas require more focus.
Strategies to monetize Streaming
There are many obstacles that streaming platforms have to overcome in order in order to make money. To generate profit and revenue, streaming platforms need to implement monetization methods.
One common method of making money from streaming platforms is to offer subscriptions, which let users get access to their contents. Many subscriptions include access to mobile devices, ads-free access and blocking ads.
Content available on a pay-per-view basis has become a popular monetization method. This model is suitable for both live streaming and paid content.
There are other ways to earn money through streaming services, apart from subscriptions and ad models. This will provide them with an income stream that they can use to pay the creators. This can reduce the cost operating expenses and improve profits.
The competition between Paid Services on Streaming
Users can choose to stream videos online via ads-supported services such as YouTube, Twitch, or sign up to premium subscriptions such as Netflix, Disney+, or Amazon Prime Video. Certain streaming services provide free HD streaming, whereas other require more bandwidth in order to work with 4K.
One way to distinguish a streaming service is by offering a unique user experience, which is tailored to the requirements of the audience. Quibi can be described as a stream platform which focuses on short mobile video.
The competition of paid streaming services with similar content is another challenge to streaming service. This competition among streaming providers has led to a decline in the rate of new customers being enrolled and an increase in churn. Instead of trying to acquire new customers, companies must focus on retaining the ones that they have. This will help them reduce customer acquisition costs and increase revenues. In order to achieve this it is essential to have a system for managing retention that is well designed is crucial.