SILVER SPRING, Md. - Jan. 11, 2023 - PRLog -- As the streaming and content service provider markets move past the immediate aftermath of COVID-19, which stimulated demand for over-the-top (OTT) offerings through the shelter-in-place period, the industry now faces headwinds driven by rising inflation and the prospects of a global recession.
"The OTT sector is experiencing a major wave of change as consumer attitudes and behaviors rapidly evolve in new directions. A significant pivot is taking place as we moved beyond the pandemic when a slew of new streaming service providers rushed into the market to engage directly with consumers starved for new content and experiences," says Matt McSweeney, Vice President of Sales at TiVo.
Churn rates, for instance, are on the rise as customers surf from one provider to another, chasing the content they want -- dynamically subscribing to new accounts while closing others. This is prompting operators to explore new ways to engage and retain relationships with subscribers.
"There are several reasons for this. Streaming providers have been laser-focused on accelerating the pace at which they bring new content to customers in a hyper-competitive market. However, by shortening their go-to-market timelines, many have not adequately resourced product development, road mapping and audience engagement processes," says McSweeney.
It is a dynamic that has resulted in user experiences that could be more intuitive for end-users.
Other factors affecting the market revolve around technology debt. Many OTT players, he explains, are dealing with previous generations of technology investments that are not always aligned with the capabilities and architectures of emerging technologies.
Managing this added complexity elevates the costs associated with developing, testing and integrating new offerings. With rising production, distribution and user interface costs, some providers have raised prices.
Consumers Strike Back
"Consumers have responded by demonstrating just how fickle they can be," says Jon Heim, Senior Director of Product Management at TiVo. "This has been especially true given how easy it is for them to sign up—and then discontinue—their subscriptions."
While the average consumer household in the United States subscribes to approximately eight video services on demand (SVOD), according to recent survey research conducted by TiVo, how they manage these subscriptions is changing dramatically.
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