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Video Streaming Profitability Playbook for Revenue Optimization

May 09, 2024

  • Recurring Billing
  • Revenue Management
  • Revenue Operations
  • Revenue Recognition
  • Subscription Business

Your Evergent Playbook to Optimize Revenue Toward Streaming Profitability

The world of streaming is changing quickly. Gone are the days when the number one priority was subscriber growth. Today, all streaming businesses face tough market realities — and the pressure to demonstrate real profitability is mounting. Content production and licensing fees are surging, and subscription fatigue and the luxury of choice mean consumers are quick to cancel their subscriptions if they don’t see value — or feel valued. Faced with global cost of living challenges, households are thinking twice about how many streaming services they need to maintain.

So, how can you take action and boost your streaming profits? Here’s something our industry understands: Subscriber retention is vital. A Harvard Business Review study found that acquiring a new customer can be between five and 25 times more expensive than retaining an existing one. Offering a personalized experience and removing friction throughout the subscriber's journey is fundamental to fostering platform loyalty. But what many folks often overlook is that there are several quick-fix, straightforward tweaks in how streamers engage with their audiences that can lead to huge revenue gains across millions of subscribers. 

Let’s take a closer look at just some of those pivotal ways streaming businesses can stop leaving money on the table:

Proven Strategies to Increase Streaming Profitability

The truth is that many streaming providers are missing out on revenues by not fixing the avoidable leaks. Even the smallest leaks in revenue can seriously hurt your bottom line if you're not quick to address them. Staying ahead of subscriber churn is a great place to start. Providers must take a proactive approach to churn, identifying signs that a subscriber’s payment may default, or that a sports fan might ditch their service once the season wraps up. Harnessing advanced analytics and AI allows you to catch these signs early and step in with curated engagement strategies such as intelligent payment retries, personalized offers, or letting subscribers pause their subscriptions and return when they're ready.

Fixed the leaks? Let’s talk about experimentation — fundamental to landing on real growth strategies. Major video streaming companies are rapidly increasing the number of subscription tiers they offer. The big question is, which of these options are hitting the mark, and where? Streaming players need to use data-informed insights to trial and double down on the products, business models and partnerships that resonate best with diverse audiences.

Video streaming businesses also need to start asking themselves: “How well do I really know my consumer? What’s their next move? Where’s the upsell opportunity?” Today, providers need to understand and engage with their customers on a deeper level, harnessing behavioral insights to tailor product offerings while pioneering customer-centric subscription options like event-based pricing or loyalty programs.

Alongside powering real-world revenue game-changers with AI-backed tools and a range of flexible subscriber engagement tactics, providers are missing a trick if they underestimate the complexities of global payments. Keeping up with constant evolution in local trends and global payment intricacies is a significant operational burden — robust systems and localized strategies are critical to reducing friction in onboarding and minimizing payment-related churn. 

Find your Winning Play for Streaming Profitability

Our latest whitepaper, ‘A Playbook for Streaming Profitability explores these strategies in more detail and shares a range of actionable takeaways to help you drive increased revenues for your video streaming business.

Schedule a demo with us today if you’d like to discover how Evergent can help you power sustainable business growth and long-term retention with data-driven insight and AI-powered tools.