Why are Data Analytics crucial for Pay TV operators?
– The recommendation system influences about 80% of content streamed on Netflix
– Netflix estimates that its algorithms save about $ 1 Billion a year in value from customer retention
– Netflix analyzes customers’ choices and customer feedback on the movies they have viewed— over 1 billion reviews of movies they liked, loved, hated, and so forth
– Netflix will often recommend movies that fit the customer’s preference profile but that aren’t in high demand.
Above is a simple example of how Netflix benefits from extensive usage of data science to drive engagement and revenues by improving the relevance of their content catalogues, as well as the performance of the user experience. It is clear PayTV operators need to make use of similar technologies and tools to stay competitive and profitable.
OTT providers are using data analytic tools to ensure a delighted customer experience. TV operators need to adapt this data-driven, subscriber focused approach to reduce churn and build customer loyalty.
What to analyze?
Effective data management can provide enough insights into the actual viewing and browsing patterns to produce detailed audience profiles. Operators can leverage this data to personalize their content offerings and perform targeted advertising, promotions, enabling monetization opportunities.
“What are subscribers watching?”
“When are they watching?”
“How much are they watching?”
“Where are they watching?”
“Who are at risk for churn?”
How to analyze?
When this data is confusing, neither personalization nor targeted advertising will be accurate, and therefore ineffective. Inaccurate TV business analytics can also leave to misguided content purchases, which may end up being costly for the organization.
Data analytics can provide competitive advantage for any Pay TV operator which indeed leads to the success of the business. All they need is an Analytical platform which can transform the data into intelligence and helps the operator to arrive at smart decision making.
Effective analysis of data points assists CXOs to make high impact strategic decisions around content, subscribers, pricing matrix. These would lead to:
– Content strategy
– Pricing strategy
– ARPU maximization
– Churn Reduction
– Region expansion plans
Magnaquest’s Subscriber Management and Billing system maintain lots of data metrics around customer demographic, packages/content ordered, tickets, service breakdowns, customer satisfaction, revenue metrics per subscriber or content, predictive churn etc.
Further Magnaquest system can merge the above data points with data from Middleware or viewer measurement system to provide a unified 360° view around the customer. The systems Analytical and Reporting tool has configurable dashboards which provide top management decision enhancing reports.
To Know more about our Analytical Reporting tool, Contact Us