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MAXIMIZE MEDIA REVENUE
Monetization Strategy
Optimizing SVOD
Optimizing AVOD
Extending Reach
Leveraging Insights

Optimizing your

SVOD BUSINESS

As the streaming wars heat up, SVOD services must sharpen their focus on subscriber lifetime value and optimize every phase of the audience lifecycle. In this module, we draw from the experiences of our most commercially successful SVOD customers to share proven, data-driven strategies that attract, engage, retain, and win back subscribers.

EXPLORE CHAPTERS

1.

Acquire Subscribers More Efficiently

Building a sustainable SVOD streaming service begins with smart, cost-efficient subscriber acquisition. And that means targeting and converting as many high-value subscribers as possible.

Here are four opportunities to grow your subscriber base in a more strategic, profitable way.

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Conduct Lookalike Campaigns

Target prospects similar to your most valuable subscribers with lookalike campaigns on search and social media sites. This strategy requires the ability to identify your best subscribers based on their lifetime value and how happy they are with your service.

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Promote Your Most Enticing Content

When people sign up for your service, what do they watch first? These are the titles that draw a crowd, so they’re perfect for marketing to new subscribers. You can also use information about first-watched content to guide licensing and production investments.

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Drive Up Conversion Rates

With the right data, you can see and boost the effectiveness of subscriber acquisition efforts. For example, analytics on conversion rates by device and referral source allow you to direct your marketing dollars to the channels that deliver the biggest bang for the buck.

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Make Signup Simple

When a viewer is ready to subscribe, make it as easy and frictionless as possible. You have a greater chance of sealing the deal if you minimize the number of steps during checkout and support multiple payment methods and currencies.

Insight Spotlight:
Gauging the Health of Your SVOD Business

SVOD success rests on harnessing data across the subscriber lifecycle. With unified audience analytics, you can devise strategies to improve subscriber acquisition, engagement, and long-term loyalty.

You can also get actionable insights by tracking performance metrics against industry benchmarks and in response to milestone events, like the addition of new content, the launch of new subscription pricing tiers, or the execution of a direct marketing campaign.

Metrics that Matter

  • Subscriber Lifetime Value (SLV)
  • Customer Acquisition Cost (CAC)
  • Average Revenue Per User (ARPU)
  • Subscribers Gained
  • Subscribers Lost
  • New Trials
  • Trial Conversions

2.

Engage Subscribers to Build Loyalty

Your acquisition efforts paid off. Now, it’s time to turn new subscribers into loyal fans. Below are some proven approaches to delivering an engaging experience that keeps subscribers coming back.

Showcase your content Help subscribers discover new content with curated playlists, scrollable carousels, and smartly tagged videos. Use Attention Index data to promote titles that are known to increase subscriber lifetime value.
Stagger content releases Break the binge-and-burn cycle by spacing out content drops. Subscribers are motivated to tune in regularly and new shows have time to build momentum.
Deliver a broadcast-quality experience Rebuffering, freezing, and other streaming glitches can undermine audience loyalty. Stay on top of performance issues by monitoring quality of experience (QoE) metrics.
Leverage live events Consider adding live event programming, like sports or entertainment. Live events encourage appointment viewing, with upcoming games or concerts giving subscribers a reason to stick around.
Add a linear channel Complement a VOD offering with the lean back experience of a linear channel. This strategy can win over subscribers with different viewing styles, content interests, and price sensitivity.

Insight Spotlight:
Measuring How Subscribers Value Your Content

Understanding what captures subscribers’ attention allows you to make the most of your content investment. You can use Brightcove’s measures of content effectiveness, Attention Index and Service Share, to:

  • Identify which content to promote in your marketing, trials, and in-app recommendations
  • Increase subscribers’ engagement with your content and service
  • Make more informed decisions about content licensing and production

Metrics that Matter

Attention Index

% of viewers who watched at least 75% of a video minus % of viewers who watched less than 25%. Scores range from -100 to 100. Popular, well-watched shows typically have scores above 50.

Service Share

% of video views for a given content asset relative to total service views. Service Share works like a Nielsen rating for your service.

3.

Retain Subscribers by Combatting Churn

A proactive strategy to fight churn is critical for any SVOD business. In addition to the lost revenue and expense of acquiring new subscribers, churn works against your future growth since you’re essentially trying to fill a leaky bucket.

How Can You Keep Churn Rates in Check?

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Stop Churn Before It Starts

Any subscriber can swing from “safe” to “at risk” if engagement levels drop dangerously low. With actionable data on viewing activity, you can predict which subscribers are likely to leave and take preemptive steps to keep them.

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Personalize Re-engagement

Create marketing messages based on a subscriber’s viewing history. What new releases, related titles, or hidden gems will entice the subscriber to re-engage? It’s also useful to differentiate between idle and inactive users.

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Automate Outreach

Take advantage of integrations between streaming platforms and martech systems to automate re-engagement campaigns. Email and SMS messages work best since at-risk subscribers are less likely to be in your app or on your site.

Different Re-engagement Strategies
IDLE USERS INACTIVE USERS
Subscriber iconWho they are
 Subscribers with no views in the last 4 weeks, but at least 1 view in the prior 8 weeks Subscribers with no views in the last 12 weeks, but at least 1 view in the last year
Retain iconWhy they’re important
 Greatest risk of voluntary churn High lifetime value due to long tenure
Quality service iconLikely scenario
 Burned through initial content of interest Probably forgot to cancel their subscription
Market Growth iconWhat you can do
 Run a high-frequency re-engagement campaign with personalized content recommendations that showcase the broader value of your platform. Reach out once a week until fully re-engaged. Add to a win-back campaign when new content drops that they might be interested in. A less frequent outreach cadence minimizes the chance of triggering a cancellation.
Idle Users
Subscriber growth iconWho they are
 Subscribers with no views in the last 4 weeks, but at least 1 view in the prior 8 weeks
Retain subscribers iconWhy they’re important
 Greatest risk of voluntary churn
Quality service iconLikely scenario
 Burned through initial content of interest
Market Growth iconWhat you can do
 Run a high-frequency re-engagement campaign with personalized content recommendations that showcase the broader value of your platform. Reach out once a week until fully re-engaged.
Inactive Users
Subscriber growth iconWho they are
 Subscribers with no views in the last 12 weeks, but at least 1 view in the last year
Retain subscribers iconWhy they’re important
 High lifetime value due to long tenure
Quality service iconLikely scenario
 Probably forgot to cancel their subscription
Market Growth iconWhat you can do
 Add to a win-back campaign when new content drops that they might be interested in. A less frequent outreach cadence minimizes the chance of triggering a cancellation.

4.

Win Back Lost Subscribers

Even with a strong retention strategy, churn happens. But you can lure back lost subscribers—and add a couple points to your monthly growth—with this basic framework.

Determine why subscribers aren’t renewing. Was the churn involuntary—due to an expired credit card, for example? Or voluntary, based on pricing, performance, or content issues?

Automate win-back campaigns. Send e-mails and SMS messages with set-it-and-forget-it regularity to increase the efficiency and timeliness of re-engagement efforts.

Segment lost subscribers into meaningful groups. Consider factors like churn reason and timing, content engagement, and satisfaction with your service before leaving.

Make it easy for lost subscribers to re-up. Keep their accounts and payment vehicles active so returning to your service is as streamlined as possible.

Create targeted win-back campaigns. Develop messaging and offers to appeal to specific segments of lost subscribers. (See examples in the table below.)

Track the effectiveness of win-back campaigns. This will help you determine which lost subscriber segments to prioritize and when to cut your losses.

WIN BACK LOST SUBSCRIBERS WHO... BY PROMOTING...
Are frequent churners An annual subscription
Were highly engaged The release or acquisition of content that’s similar to their most-watched shows or genres
Canceled due to pricing A lower-cost subscription tier or a value-oriented offer like limited-time access to HD content
Canceled due to performance issues An updated app or the availability of your service on a new device or platform

5.

Achieving SVOD Success

Media companies can build a successful SVOD business by optimizing every phase of the audience lifecycle. As you plot your growth trajectory, look for opportunities to increase acquisition efficiency, deepen engagement, reduce churn, and win back lost subscribers.

Technology is also an important consideration. Broadcast-grade streaming platforms deliver rich decisioning insights, flexible subscription packages, and an outstanding, personalized subscriber experience—whether on demand, live, or linear. Together, an end-to-end strategy and a trusted streaming solution can help you drive growth and subscriber lifetime value.

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