A solid majority — 83% — of U.S. internet households now subscribe to at least one OTT service, according to new consumer research from
Parks Associates. Meanwhile, 45% still subscribe to a traditional linear pay-TV service.
“The most successful video services going forward will be dominated by innovative technologies, including AI [artificial intelligence] and ML [machine learning], that drive sustained high levels of engagement with consumers through advanced content moderation and curation,”
Sarah Lee, research analyst at
Parks Associates, said in a statement
AI and ML can create a personal experience by leveraging data to understand patterns and relationships at a very granular level, beyond recommendations that “standard” big-data-based systems, according to Parks.
“There is a vast range of AI and ML use cases in media and entertainment — companies are only starting to scratch the surface,” Ira Dworkin, managing director of communications, media and entertainment for FPT Software, said in a statement. “These can range from generating richer metadata that can be used to drive experiences to reducing time required for content preparation to driving deeper advertising engagement. Leveraging and extending the data that already exists for many M&E companies to build bespoke AI/ML models can help to drive new insights, ultimately reducing churn and improving subscriber loyalty.”
Parks Associates research finds that 30% of U.S. internet households are “service hoppers” or streaming video subscribers who frequently switch services and re-subscribe multiple times. Businesses that harness AI can develop more effective and efficient strategies to keep these viewers from “hopping,” according to Parks.
“By understanding the viewer on a deeper, personal level, businesses can deliver a more positive, individualized experience that drives acquisition, satisfaction, and retention,” Lee said in a statement. “AI and ML models can provide this understanding and identify factors that result in higher customer acquisition and long-term subscriptions.”
From the article, "Parks: 83% of U.S. Internet Households Subscribe to at Least One OTT Service," by Stephanie Prange.
