In 2007, Netflix revolutionized the television viewing experience with the launch of its on-demand digital streaming service. For the first time, consumers had control over how and when they consumed content. The variety of over-the-top (OTT) streaming services that soon followed provided cost-conscious consumers with affordable alternatives to the expensive, long-term contracts standard for traditional pay-TV programming packages.
Today, multiplatform streaming services have become ingrained into consumers’ always-connected mobile lifestyles. The market has exploded in recent years with new players entering the fray almost daily. The fierce competition is causing the market to fracture as TV studios and media companies withdraw distribution licenses for popular shows from independent streaming services in order to offer them exclusively on their own platforms. Meanwhile, the subscription services heavy-hitters have been quickly expanding their video libraries with original programming.
The resulting a la carte marketplace translates into higher costs for consumers as they are forced to pick and choose which programs they’re willing to pay to view. However, the freedom of month-to-month subscriptions makes it easy for viewers to sign up and drop services to get access to the shows they desire. Market research firm Park Associates found that 28% of consumers have subscribed to a streaming service to check out a single title.
In the coming years, reducing subscriber churn will continue to be a top challenge for streaming services providers, especially with the recent increase in new OTT sites offering free ad-supported content. In the increasingly crowded television entertainment landscape, the battle for consumers’ share of wallet is no longer between streaming services and traditional TV providers. Streaming services providers must now compete with each other to cultivate subscriber retention and growth.
Access to an extensive content library is undoubtedly a top draw for potential subscribers; however, consumers also view providers that deliver innovative, personalized solutions as a higher value proposition. Today’s digital-savvy consumers seek a superior end-to-end experience that makes viewing their favorite shows easy, convenient and friction-free.
The following are key customer service challenges for streaming services providers:
In the increasingly crowded and competitive streaming services landscape, companies are partnering with leading contact center outsourcers to deliver a superior end-to-end customer experience. CustomerServ’s elite call center vendors provide expertise in: