Media companies need to provide unique, personalized content, driven by deep insights into individual consumer preferences, due to the growing popularity of over-the-top (OTT) streaming services. In the past, media companies were not in direct contact with consumers and interacted in a mass marketing fashion. Now the business model is changing to direct to consumer, and media companies need to adapt to survive and thrive.
Consumers are willing to pay for the right content
In the music world, interactive personalized streaming of music (Spotify, Apple Music, Deezer…) is overtaking physical downloads of music from a revenue perspective, and it is even rumored that Apple will stop downloads from iTunes next year. In 2017 streaming accounted for almost two-thirds of music industry revenue. By the end of this year, over half (57%) of Spotify’s 157 million worldwide active users will be paying for subscriptions.
Using analytics and identity management to suggest relevant content to consumers
To understand what a viewer will like in six months, media companies must manage the complexity of multiple touchpoints, both physical and digital. It is also essential to build consumer trust and loyalty if you are seeking personal information from a viewer to drive that personalized experience. Algorithms underpinned by cognitive technologies help determine which content might interest a subscriber. Identity management software enables the buildup of a profile of preferences and leads to greater personalization and consumer loyalty.
Media companies can also analyze social activity information about a viewer to further increase levels of personalization, and it makes sense to provide that viewer with a personalized subscription offer and “up-sell” based on that person’s video consumption and social media activity.
Machine learning and blockchain help with personalized ads and content monetization
Software such as Pippa developed a technology that allows podcasters to insert personalized ads to a podcast. It is planning to use AI to perform deep audio search and personalize ads based on a podcast’s content. With a new avenue for monetization of podcasts, this technology could boost podcasting and make it much more profitable. Jaak uses blockchain technology to identify the usage and rights to song streams. It enables apps and platforms to identify who is streaming a song and when identifying the multiple rights holders and assigning corresponding payments.
By 2020, Gartner predicts that artificial intelligence (AI) bots, rather than humans, will manage 85 percent of customer interactions. There will be more than 82 million U.S. millennial digital video customers. As media companies grapple with the challenge of getting personalized content to the consumer at the right time, companies that proactively invest in advanced analytics, machine learning, and blockchain will gain a critical first-mover advantage.
To learn more, read our Reimagining Media in the Digital Age blog series.
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