It happened to a giant like Disney. That leaves just about every other OTT player or any other brand that struggles to keep the numbers of subscribers high, vulnerable too.
Why do businesses lay off employees when their revenues go down? It is obviously to stay profitable. But this might be a short-term boost to revenues and not really a great solution in the long term.
On the other hand, we would have loved to see in the report, what Disney has planned to arrest subscriber churn.
May be they are already doing a lot and are still losing subscribers.
But what if the same thing happens to a big, but a not-so-big OTT player?
In such a scenario, prevention is, as always, better than a cure. Subscribers don’t unsubscribe / churn overnight. There will be a series of experiences that would have made them take the eventual decision. Fortunately for brands, the impact of those would be explicitly visible in reports like Daily Active Users, Monthly Active Users, Day X retention etc.
All such OTT players need to do is track those metrics and proactively run retention campaigns to keep their audiences hooked – maybe give them an extended subscription or something. Any money spent on such things can be easily got back through their future subscription and this is definitely a better place to be in than, losing out on subscribers.
We are sure OTT players invest a lot in analytics that recommend the right type of content for each subscriber. But trust us. It may get the subscribers hooked for some time. But, it won’t do much in terms of retaining them.
But when they extend their analytics capability to cover the metrics we talked about earlier, they can not only identify potential churn, but can also act on it before it happens.
The truth is - each subscriber retained is several subscribers acquired.