Streaming TV services have become increasingly popular in recent years, and businesses should take note of the benefits they offer. Firstly, streaming TV services provide a cost-effective alternative to traditional cable or satellite TV, allowing businesses to save on entertainment expenses. Additionally, these services offer various channels and content options, allowing businesses to tailor their TV programming to their specific needs and target audiences.
Cost-Effective
Streaming TV services for businesses is a cost-effective way to reach customers. Unlike traditional advertising, streaming ads are targeted using various data sources beyond geographic locations. This allows for greater personalization and targeting, leading to higher conversion rates. For example, a business could create branded content and distribute it on a subscription-based model or an ad-supported video-on-demand (AVOD) service. This type of advertising is more effective because it creates a sense of familiarity and trust in viewers, making them more receptive to future marketing efforts.
Similarly, streaming TV ads are often more cost-effective than traditional television commercials because they offer a much lower CPM rate. This is primarily because streaming ads are based on data and, more precisely, target a specific demographic, whereas traditional TV advertising bases its targeting on airtime and ratings. This leads to a better return on investment for businesses. Moreover, it also helps build brand loyalty and generate repeat sales among existing customers.
Flexibility
Unlike cable TV, streaming platforms allow users to access a vast library of movies and television shows without the extra cost of purchasing individual movies or TV shows. Additionally, these platforms often offer a free trial period to allow audiences to sample their content before committing to a subscription.
This flexibility can help reduce customer churn. For example, one leading provider of consumer cable television, internet, and wireless services sought to increase subscriber retention by personalizing its acquisition campaigns.
As a digital advertising medium, streaming TV offers businesses a unique opportunity to target their audiences based on more precise variables, such as demographics and interests, rather than old-fashioned factors like ratings or time of day. As a result, marketers can achieve higher engagement rates when placing ads. This makes the platform ideal for brands to drive awareness and engage consumers about various products and services.
Reliability
Video streaming services stream content directly to customers over their Internet connection rather than the traditional cable network. This allows them to offer lower prices and more flexible tiers that appeal to businesses.
However, video streaming services still depend on a good Internet connection to avoid lagging and poor video quality. For example, suppose your business doesn’t have enough bandwidth to stream HD/4K videos at high framerates. In that case, you can use adaptive bitrate streams to optimize video delivery on the fly based on initial connection tests within the first few seconds of loading.
This enables them to deliver a consistent experience that works well for most customers, regardless of their bandwidth or location. In addition, leveraging predictive analytics to identify churn risks enables video streaming providers to send targeted communications and proactively encourage subscribers to migrate to an ad tier or another bundle service before they cancel. This helps minimize churn and boost profitability. It’s important to remember that acquiring new customers costs five times as much as keeping existing ones.
Convenience
Streaming TV services enable users to watch programs when they want and at their own pace. This means they can avoid the frustration of being restricted to a predetermined program schedule, pause a show or movie for later viewing, and even revisit favorite episodes if necessary.
Moreover, various subscription options exist for streaming services, from free to paid. Paid subscriptions provide full access to a catalog of great shows, movies, and sports and are often ad-free. Streaming channels can also include live content, meaning businesses can stay up-to-date with news and events in their industry and worldwide. As the popularity of video streaming continues to rise, these platforms must take a customer value management (CVM) approach and focus on building long-term engagement and retention with their customers. With the high cost of acquiring new subscribers, this can be vital to achieving profitability in this competitive space.
Global Reach
With the advent of video streaming services, entertainment content is now available worldwide. This has increased the popularity of online TV platforms, especially those offering international content. It has also contributed to the decline of traditional cable television subscriptions.
Globalization of streaming has been enabled by the availability of affordable smartphones and improving network infrastructure, including broadband internet. As a result, many more people have access to paid streaming services. Additionally, an expanding middle class in Asia Pacific countries means greater disposable income, making them more willing to pay for entertainment content. This has increased local production of movies and TV shows, allowing streaming services to cater to diverse consumer audiences.
However, the competitive environment for online video streaming is fierce, and customer churn is an issue. Effective and industrialized customer value management (CVM) campaigns can help improve profitability, reduce churn, and increase customer lifetime value. The key is to have a unique value proposition and focus on user engagement. This can be achieved through personalized content and an optimized user experience for each device.
