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Data for subscriptions podcast - Episode #11

Why Streaming Services Are Putting the Spotlight on Customer Experience


Demed L’Her

Demed L’Her
CTO at DigitalRoute


Episode description

Why streaming services are putting the spotlight on customer experience

The media streaming stage is crowed with more players than ever. That means audiences have more choice than ever.

But many people are overwhelmed (or bored) with all the choices. That’s triggered a malaise caused by what the industry calls subscription fatigue.

At the same time, many households need to need to save cash. So, people are cancelling their subscriptions in droves.

In this climate, media providers have to give their customers the star treatment. They have to tailor both content and subscription package pricing to match what audiences want.

So, how can media streaming services find the secret to CX success? In this episode, host Behdad Banian and DigitalRoute CTO Demed L’Her take a close-up look at the value of service usage data.


What are some of the market trends you’ve noticed of late in the video streaming industry?

Well, we can see that the market is certainly maturing. We have a lot of competition in the segment and it’s not just one or two players anymore. There’s Netflix and Amazon Prime, but we also have Hulu, Apple TV, YouTube Premium, and many others.

We’re also seeing more ways in which customers can get these services. The flat rate subscription model is still very popular, but we’re also seeing providers bundle their services with other providers or with the internet or phone connections.

Another aspect is that service providers are currently offering subscribers large amounts of content. For instance, both Apple Music and Amazon Music said they have around 100 million tracks each and are adding around 100,000 every day.

What is the importance of customer experience in the streaming industry?

It’s important because, at least at a glance, almost every subscription service looks similar from a customer perspective. Of course, in the video streaming industry there’s some differences in the content catalog, we go to Disney for Star Wars or Apple TV for Ted Lasso.

But in the audio streaming industry, all the players have very similar catalogs except for a few tracks or so. So, customer experience is pretty much the only way they can differentiate themselves between their competitors.

And they really have to differentiate among themselves. We’re facing inflation, prices are going up, even for streaming services, and customers are experiencing subscription fatigue.

Many customers are cutting down on their subscriptions. If streaming platforms can’t differentiate themselves and provide what the customer wants, they’ll lose their business.

What are some of the challenges of improving customer experience in the streaming industry?

Well, as you can imagine, one of the major challenges is that these companies have millions of customers. So, they have to figure out what each of them likes and tailor the experience accordingly.

We’re talking about capturing and collecting usage data from millions of customers. Then you have to enrich and analyze it to get insights into their behavior and what they want.

Dynamic pricing will also be crucial. Streaming platforms might offer bundles and freebies. But to back that up, they have to make better use of usage data.

How does DigitalRoute help streaming companies enhance experiences?

Offering an enhanced customer experience is largely about understanding your customer and giving them what they like.

On one end, we help companies build diverse business models and offerings for their customers. If a customer is watching 10 movies in a month, we help the streaming business collect that data.

We connect usage data with the customer’s pricing plan, and to various partner content providers. We also help connect customer usage data to the financial backend.

Personalization also requires robust analytics dashboards and AI and ML systems crunching usage data. DigitalRoute’s solution collects the usage data from the company’s systems and enriches and prepares it for these systems.