The media industry has undergone a radical transformation in recent years, driven primarily by digital media growth and the widespread adoption of mobile devices. This transformation has impacted conventional modes of content consumption, causing ripple effects on consumer behavior and business operations. Businesses increasingly promote content targeted to specific demographics and monitor the efficacy of their marketing campaigns in real-time. On the other hand, consumers have a wealth of new opportunities for staying informed and entertained, with instant access to news, music, movies, and other content on their various devices. Businesses and consumers must stay updated and informed on these changes if they want to stay up-to-speed in today’s fast paced world.
Shifting Consumer Behaviors
Understanding the shift in the media landscape and how it impacts consumer behavior is vital for businesses to adapt strategies that meet their customers’ needs. But what are these shifting consumer behaviors? What’s driving the change, and how can companies benefit? Let’s dive in.
- Growing Preference for VOD Over Traditional Media: According to a recent survey by Cloudwards, a staggering 85% of consumers now subscribe to at least one streaming video service. Another survey found that 62% of US consumers prefer to watch TV shows and movies on streaming services rather than traditional cable TV.
- Rise in Subscription-Based Services: Netflix’s subscriber base increased from 23.9 million in 2011 to over 231 million by 2022. Disney+ has gained over 164 million subscribers since 2019. This trend is driven by the convenience, affordability, and content diversity of subscription-based services.
- Increasing Use of Mobile Devices: According to eMarketer, adults will spend 43 more minutes per day on smartphones than on TV by 2024. And per Statista, the number of smartphone users is expected to reach 7.6 billion worldwide by 2027.
- Personalized and Curated Content Recommendations: A survey found that 80% of Netflix users choose titles based on the platform’s personalized recommendations.
- Growing Demand for Original and Exclusive Content: According to Broadcast Bridge, original content does appear to have an overall larger positive effect on subscriber retention. About 75% of those using Amazon, Hulu or Netflix say that having access to original content makes them more likely to keep subscribing.
- Increased Interest in User-Generated Content and Social Media Influencers: As per a study by Google and Ipsos, 40% of millennials say their favorite YouTube creator understands them better than their friends and 60% of millennials are more likely to take purchasing advice from their favorite creator than their favorite TV or movie star.
- Expectation for Seamless and Convenient User Experiences: PWC found that 80% of consumers consider seamless and convenient experiences as important as the quality of the product or service. Another survey found that 52% of consumers are less likely to engage with a company because of a bad mobile experience.
- Preference for Ad-Free or Ad-Light Viewing Experiences: A survey by HubSpot shows a 10% increase in consumers using free, ad-supported streaming TV (FAST) channels like Paramount’s Pluto TV. Currently, 55% of consumers report that they get at least some of their video content this way.
- Shift Towards Multi-tasking: Consumers are increasingly multi-tasking when consuming media, such as browsing social media or shopping online while watching TV. Accenture reports that 87% of US internet users regularly use another device while watching TV.
Vubiquity’s role in helping companies leverage these behavior shifts to stay ahead of the curve
Vubiquity understands that great content has a significant impact on consumers’ lives. As content is consumed on virtually any device in virtually any location, we help our clients exceed their viewers’ demands and expectations by enabling powerful entertainment experiences.
Vubiquity’s Content Cloud is a game-changing API-driven solution that lets video service providers access a wide range of ready-to-use content catalogs from major and independent studios across multiple territories. Delivering content to any online video platform (OVP) or multi-screen end user, Content Cloud supports multiple business models and monetizes pre-processed VOD assets with CableLabs compliant metadata. Future-proof and flexible, the platform can be deployed as an end-to-end OTT media stack solution together with a front-end app on multi-screens and CDN or integrated into a service provider’s network.
Content Cloud hosts licensed, processed ready-to-distribute content, thereby accelerating VOD OTT service launches or improving existing entertainment offerings. By simplifying VOD processing, scalable storage, and the CDN Origin server, the platform reduces operating and capital costs.
Using advanced analytics and business intelligence, Content Cloud optimizes performance and provides key insights into consumer behaviors, content trends, as well as platform, system, and operational metrics. Analytics include wish lists, trending content, watching now, etc.
OTT monetization via the Subscription Marketplace
Consumers want more convenient and flexible ways to access their favorite content. To meet OTT and digital consumer service demand, you need a one-stop solution that can incorporate the management of various digital subscriptions in one place.
Subscription Marketplace, a cloud-native SaaS platform, helps launch, manage, and monetize OTT and digital consumer services. The platform helps companies quickly launch and manage subscription-based services so they can focus on customer engagement.
Subscription service providers can deliver powerful consumer experiences in entertainment, education, business, and more with Subscription Marketplace’s pre-integrated digital partners. The platform manages the enabling, partner onboarding, and customer and subscription lifecycles for hundreds of leading digital partners.
With Subscription Marketplace, digital subscription services expand their reach and communication service providers (CSPs) differentiate by bundling connectivity with an ecosystem of ready-made digital partnerships to deliver new and relevant consumer experiences. Plus, the platform makes consumer enrollment, discovery, purchase, activation, and payments easy, consistent, and engaging.
Entertainment Suite: VOD platform for every Provider
Vubiquity’s Entertainment Suite is well-positioned to leverage the growing consumer preference for subscription-based services, the shift to less expensive (or free) ad-supported TV, and the need for curated recommendations of movies and TV shows.
By combining pre-onboarded global and regional OTTs with a full suite content offering, Entertainment Suite enables content providers, telcos, and CTV operators to launch or supplement an existing OTT streaming service with a lower cost of provision. With a modular offering covering content acquisition, delivery, monetization, and consumption, operators can choose specific components or the entire OTT service. All content categories can be offered as a service: ad-supported VOD, FAST, SVOD, TVOD, and D2C.
Vubiquity’s solution includes subscription management, operator identity management, seamless OTT partner onboarding, and a white-labeled app/launcher for an engaging user experience. Content providers can grow their reach exponentially by partnering with telcos. In turn, telcos can acquire new customers, engage consumers directly, and reduce churn with bundled TV and OTT partner offerings. Entertainment Suite provides a personalized consumer experience and deep consumer insights to help grow new revenue streams consistently.
In summary, the media industry is undergoing a significant transformation due to changing consumer habits. People are seeking more personalized, on-demand content that is easily accessible across various platforms and devices. Innovative solutions, such as Vubiquity’s Content Cloud, Subscription Marketplace, and Entertainment Suite, help companies gain a competitive edge by enabling compelling user experiences and generating new and improved revenue streams. If you’d like to learn more, then please reach out for a meeting: https://www.vubiquity.com/contact-us/