Content, Engagement and Simplicity

S05E07: Game of Streams (Content, Engagement and Simplicity)

Our Media Solution Specialist, Magnus Svensson, is sharing his reflections on the online streaming industry in this post. This is part of a monthly series so make sure to follow us here if you don’t want to miss an episode.

Ease of use and simplicity

In a recent report from PwC that surveyed 1,000 US consumers ages 18 to 59 you find that only 27% of the consumers say top-notch quality content is what attracts them to streaming services. On the other hand, 55% of the consumers say ease of use is the most important factor for a streaming service. Also, 35% say knowing I will always find something to watch is a major influence.

Engagement and stickiness

Netflix is exploring a lot of areas, partly outside of their core business of video, with the goal to keep the viewers engaged within their domain. Increased focus on kids’ content is a well-known way to ensure good retention rates. Offering of merchandise is the first big move beyond TV shows and films, to monetize the brands they create and increase loyalty.

To watch out for the coming months…

We are in the mist of the Q2 earning reports and so far, we can conclude that the subscriber growth has declined for Netflix and the above-mentioned gaming expansion was discussed at the earning call. Netflix stated that this would not be an independent driver of revenue, rather a way to increase engagement and keep subscribers within their platform.

We are consultants sharing the passion for the technology for a media consumer of the future.