Micropayments and the user experience
M&E companies must rethink how content is created, packaged, distributed and sold to seize digital profits.
M&E companies let the genie out of the bottle when they began giving away digital content for free.
But it's not impossible to put him back where he belongs. To do it, companies must take a closer look at their customers, offer them premium content and develop new payment methods.
Selling directly to customers
It's important for M&E companies to get to know their customers because they are increasingly selling digital content in a direct-to-consumer model (D2C). Historically, the M&E industry focused on business-to-business (B2B) relationships.
Our research shows that M&E companies will make the most digital profits in counties where internet users' spending matches their online consumption habits. For example, in the US, UK and France, consumers' online consumption and spending habits are comparable, and those customers are open to paying for online content.
Sweetening the deal
How can M&E companies provide additional value for their customers to help spur sales? There are four key dimensions to keep in mind:
- Format and additional content (what)
- Timing (when)
- Availability and interoperability (where)
- Sharing and engagement (how)
the user experience
Cashing in on micropayments
But you can't sell a better product unless you know how customers will buy it. One popular payment method for digital content is micropayments. This new payment method contrasts traditional payment methods.
Micropayments = low unit costs + high volume transactions
Traditional payments for collective M&E experiences = high unit costs + low volume transactions
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