What does this all mean for content providers?
1. Capitalize on the heightened demand for content
Strong demand for content during the pandemic, allied to positive actions taken by streaming providers during the crisis, has created significant consumer goodwill. Taking advantage of the post-pandemic opportunity requires a careful mix of investment in content but also customer experience. Both need to be firmly rooted in addressing consumer desires and mitigating their pain points.
2. Understand the roles that value plays in decision-making
In an increasingly fragmented and competitive content industry, the costs of content and customer acquisition are escalating. Against this backdrop, content providers should be cognizant of the role that value plays in consumer decision-making and therefore consider the trade-off for their investment strategy. Careful consideration must be given to the elasticity of pricing models as well as the interplay between price and service quality. Raising prices to invest in better content and bigger libraries might seem attractive and logical, but is there a long-term trade-off that might not be worth making?
3. Put the customer and not the advertiser at the heart of the advertising strategy
The user experience is a key driver of the adoption of services and, for many, advertising is seen as the enemy of a seamless user experience. Nonetheless, it remains an integral and significant source of revenue that underpins business models. Services without advertising are changing consumer expectations. It is therefore incumbent on those that value advertising to think smarter about how to integrate and position it within their platforms.
4. Tackle fake news as an industry issue
The proliferation of fake news has a tangible impact on individuals, society and business. For example, the undermining of 5G threatens adoption rates and subsequent innovation. Consumers expect widespread action from all stakeholders and believe not enough is currently being done. Bouncing back and forth between platforms and regulators is not a route to a solution, instead the industry needs to come together to find holistic answers to these questions. Companies need to find the intersections and points of agreement where they can work together to extol the virtues of new technologies rather than always competing against each other.