How Niche OTT Services Reduce Churn
Learn more about the OTT market at Streaming Media's next event.
Watch the complete presentation from Streaming Media West, OTT201. How Niche Video Services Can Find Success, in the Streaming Media Conference Video Portal.
Read the complete transcript of this clip:
Jonathan Barbato: From a customer retention standpoint, or getting them to come back again and again, what are you guys up to?
Jon Cody: Look, for us it's a very, it's a relatively simple formula. Feed you what you love. Right? So I mean we kinda, you know, we think that perfect purpose is the one in which I'm touching your personal passion, whatever it is. Whether it is autos, or cancer, or, you know, whatever it is that, you know, that is one of your three personal loves in life. And what you find, home and gardens, you know, food, people come and they, you know, they will come back, just by the nature that you've touched their, like, you know, personal passion. And they get very connected to these services, to the point where, you know, they're, if you don't keep feeding them, they get disappointed.
So I think that, to us, is kinda the formula, which is, make sure that every time you come to one of these things, you're personally connected to it. And you wanna keep coming back to such a thing. We just think the general entertainment space, while it's great to have one, if you can figure it out, is very, very difficult. Not only are there a lot of people in it, but the content's expensive, the marketing's expensive, wherein, you know, as you get kinda into these smaller communities, you know, now it, content's available and relatively inexpensive.
The audience can be acquired for a relatively cheap rate. They stick around for a long time, so they're lifetime values, whether on AVOD or SVOD, make financial sense. And then a bunch of them will become brand ambassadors and go out and do the marketing for you.
Jonathan Barbato: Nice. Erick, did you want to add something?
Erick Opeka: Yeah, so I think one thing that we've realized in operating our portfolio of niche services is the audience isn't making a conscious decision saying, "Hey, I wanna subscribe to a video service of my passion, and then I wanna subscribe to an audio service." They're just like, "Super-serve me in the vertical that," you know, well they're not saying vertical obviously because they're consumers. But they're saying, "Hey, give me a bunch of stuff that I love that's in the topic I love."
So if you love cooking, the new Food Network service, where you've got audio cooking lessons, you've got the video, there's interactivity, there's live cooking classes. That's it, that's a really innovative way to go about it. We, for CONtv, which is our fandom brand, we acquired two companies to sorta do that. One was a company called Viewster, which brought us, you know, over 5,000 hours of anime, which really deepened us in a segment that our fans wanted more of. And then we acquired a comic subscription service called Comicblitz, which we integrated in.
So now when somebody subscribes, basically for the same price, they're not only getting 3,000 hours of fandom content, but they're getting 12,000 issues of all the major comic books. They're getting 5,000 hours of anime now. And then on top of that, a big, as you've probably seen, there's a lot of news today about Spotify, and them going exclusive on the audio side. We're finding audio is an incredibly sticky piece, and a good component, a companion, to video.
So we've started basically curating and aggregating at least the publicly available podcasts into the direct-to-consumer app, so people, if they're driving and they wanna experience something, they can. They have another choice. But I think that idea of super-serving a vertical is really how you, you stand out from competitors and also differentiate yourself against broad-based, general entertainment.
BroadwayHD's Stewart F. Lane and Bonnie Comley have made it their mission to bring the theater to people's homes. But it's a lot more than pointing a camera at the stage; they've helped create a new and different experience.
Calling some OTT services "niche" is an insult to not only the content they deliver but the audiences they serve. Isn't ESPN a "niche" service, too?
When it comes to streaming success, bigger isn't always better. Smaller, more focused services are finding audiences and thriving in the shadow of Netflix, Amazon Prime Video, and Disney+.
The age of the broadcaster is over. With OTT platforms built on microservices and previously unheard-of data collection capabilities, it's the age of the viewer now.
TV4 Entertainment CEO Jon Cody, Shout! Factory SVP Gene Pao, and Ovation SVP William Marks discuss strategies for niche services increasing their reach in this clip from their OTT Leadership Summit panel at Streaming Media West 2019.
Didja's Jim Long and Digital Media Strategies' Josette Bonte discuss the impact of recent developments in the SVOD market in this clip from Streaming Media West 2019.
Dillon Media Ventures' Rob Dillon, Zendesk's Joe Jorczak, Didja's Jim Long, Brightcove's Mike Green, and Digital Media Strategies' Josette Bonte discuss the discovery challenges niche OTT services face in this clip from Streaming Media West 2019.
Cinedigm CEO Erick Opeka discusses the impact of the Disney+ launch on the global OTT market in this clip from Streaming Media West 2019.
XUMO SVP Stefan Van Engen and MAD Perspectives' Peggy Dau discuss the challenges of OTT offering differentiation in this clip from an OTT Leadership Summit panel at Streaming Media East 2019.
Fandango VP Product Greg Ferris discusses the importance of understanding the target user in developing an OTT offering in this clip from an OTT Leadership Panel at Streaming Media East 2019.