It is important for M&E companies to understand consumer needs and behavior patterns in order to develop services that both attract and retain customers. They should understand the economic needs of consumers.
The COVID-19 pandemic has imposed severe economic constraints on millions of consumers: 39% of respondents to Deloitte’s COVID-19 digital media trends survey reported a decrease in their household income since the pandemic began. Consumers who lost income during the pandemic were more than twice as likely to cancel a streaming service because of cost, compared with those whose income was unchanged.
They also should understand consumer needs around content. As we enter 2021, original content will almost certainly remain the No. 1 factor driving consumer adoption and cancellation of streaming services. The challenge then becomes how to retain those customers before they seek other streaming options. As a result, the next level of focus should be on consumer experience: How do I attract you with original content, but then retain you by knowing more about you as a customer?
The implications for M&E companies are clear: Customers want tailored options in terms of content and pricing. Therefore, while the availability of original content is typically critical for attracting customers, a broad content library and tiered pricing (including free, ad-supported offerings) are increasingly essential for retaining them.
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