GAME TIME, ALL THE TIME DAZN’s user- centric design offers a viewing experience with minimal interruptions
READYING FOR RETENTION FAST can be more than just a monetisation strategy; it can be a method for acquiring new paying customers, as streaming platforms exploit its wide audience appeal to cross-promote their subscription-based content or premium features. But as well as potentially pulling ad-supported free viewers upwards into subscription contracts, FAST is also exerting a downward pull, as some fully subscription services are being replaced or enhanced with a more hybrid approach. “With increased competition from FAST – as well as a decline in viewers willing to pay for subscriptions – nearly every subscription- based streamer now sells ads on at least some of its content,” expresses Dembowski. “Many have introduced an ad-supported tier, which provides viewers with a less-expensive subscription option in exchange for watching some ads.” A number of big names, including Netflix, Disney and Hulu, have already taken this route. “The success of these models hinges upon finding the right balance of ad load, strategic ad placement and competitive pricing,” remarks Kamel. “This ensures a smooth viewing experience while generating substantial revenue. Hybrid models attract a broader audience, benefit advertisers with access to premium viewers and provide viewers with affordable access to content. For instance, Netflix’s basic with-ads tier, at $6.99 per month, is $3 cheaper than its ad-free basic package. In terms of revenue, hybrid models can outperform fully subscription-based services by combining the strengths of both subscription fees and ads.” Of course, nobody will make any money from streaming services if no one is watching. “Recruiting and retaining subscribers in such a competitive market requires broadcast and streaming companies to have a deep understanding of their audiences so they can deliver more personalised content and advertising,” observes Ziemer. “However, achieving a unified view of the consumer can be challenging between the explosive growth in digital data and data sources, evolving data privacy and consent requirements as well as constant changes in digital identifiers, including the imminent demise of third-party cookies. “More broadcast and streaming companies are looking to AI tools that enable intelligent user segmentation, real-time contextual recommendations and optimised measurement metrics. For
NEARLY EVERY SUBSCRIPTION-BASED STREAMER NOW SELLS ADS ON AT LEAST SOME OF ITS CONTENT
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