The streaming media market is, at times, a tale of contrasts. On one hand, the market is booming: According to MarketsandResearch, the global streaming media market is on pace to expand at a 23.2% compound annual growth rate (CAGR) between 2021 and 2025. At the same time, you’ve no doubt noticed that the number of competitors has ramped up in recent years, siphoning off customers and cutting into revenue. That same study noted the increasingly fragmented state of the streaming market as a result of how crowded the space has become.
You’re contending with more than just the historical leaders in the market. We’ve seen a major uptick in competition among network and cable companies looking to shake things up by launching their own dedicated streaming platforms. Big tech companies have also thrown their hats in the ring, in many cases leaning on their interdependent home ecosystems of products and advanced artificial intelligence (AI) capabilities to influence stickiness with consumers.
If you’ve already carved out a space in this crowded field, you may feel good knowing that 76% of consumers feel satisfied with their current slate of video streaming services. But that also means streaming media companies have limited opportunities to increase subscription rates. This challenge is felt even more acutely by smaller disruptor companies that are only now entering the fray.
Brand Loyalty Is Rare
What happens, though, when those ostensibly happy consumers see greener pastures? Brand loyalty is rare in this industry, as consumers largely view streaming platforms as content commodities, moving from one platform to another as needed. Consider this: An October 2020 Deloitte survey found that nearly half (46%) of streaming customers had canceled at least one subscription in the previous six months.
Consumers don’t exhibit much loyalty to a streaming service, especially when a more enticing option comes around. How do you build lasting customer loyalty under these conditions, when people are used to switching subscriptions from month to month?
When the dust settles, you need to be certain that consumers will stick with your services for the long haul, and that means focusing on retention, acquisition, and recurring revenue, as well as engagement metrics like monthly active users (MAU) and daily active users (DAU). There’s still that lingering question: How do you set yourself apart from the competition? It all comes down to delivering the best possible experience for consumers.
Harness the Voice of the Customer
Start with consumers and build around them. Truly understand who they are, what their usage patterns look like, and how their behavior and activity evolve over time. Let your customers guide your decision-making. Every aspect of your platform needs to be informed by customer input and feedback.
Harnessing the voice of the customer (VoC) will empower you to deliver the user experiences and content that resonate with today’s consumers. Looking ahead, when consumers move on from streaming media as we know it today, you will have the unfiltered insights to pivot alongside your audience and follow them wherever they go next.
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