With the pandemic and its impact on daily lives, OTT platforms have now become the go-to place for content and entertainment, for individuals worldwide. The pandemic has led to major growth in the digital entertainment sector, in the international app market out of which Indian Apps cover 40%. This study talks about all apps and not only Digital entertainment but the study shows an increase in mobile consumption amongst consumers of Tier 2, 3, and 4 cities, particularly for Entertainment and Gaming apps as per the State of App Marketing report 2021 by Appsflyer.

People have been looking for ways to entertain themselves while staying indoors, and what better way to do that than to turn to VOD platforms. With the next billion internet users hailing from the Hindi heartlands across tier 2, 3, and 4 cities, there has been a massive boom in using these platforms in the pandemic-induced lockdown since 2020. However, subscribers on OTT platforms can be fickle and analysing/tracking patterns of consumption and drop off patterns among the subscribers can get tricky. There are a few broad areas that one can keep in mind to keep subscribers engaged to prevent heavy subscriber churn.

Binge-worthy Narrative

According to the OTT Insights report, 'Now Streaming: The Indian Youth OTT Story' released by Dentsu Marketing Cloud (DMC), Binge-Watching as a culture is on the rise as a result of boredom in isolation. It has been observed that people tend to watch content that they are comfortable with and possibly replay the same content multiple times. In which case, OTT platforms must launch shows in that promotes binge watch culture . Working on sequels but at an extended reasonable time period gap that allows both seasons to perform is also an interesting step.

Fresh Approach

In a survey conducted by Deloitte Digital Media Trends report, 57% of the participants ranked watching TV and movies at home in their top 3 preferred forms of Entertainment. In such cases Content discovery tactics become critical at regular intervals to keep the viewer engagement metrics and subscription metrics steady. Multiple A/B testing parameters need to be done at every new show launch with scope of experimentation for implementing new strategies.

Analytics

According to the '5G Economics of Entertainment Report,' commissioned by Intel; 5G enabled Media and entertainment experiences would generate up to USD 1.3 trillion in revenue by 2028. Machine Intelligence will play a critical role in content clusters, content cohorts and intent based subscription. Recommendation cycles introducing consumer to interest based

content as well as personalized push notifications lead to higher consumer engagement metrics. Mapping of consumer LTV and platforms that help access quality paying consumers with a propensity to renew will also help address churn metrics MOM. Further simplifying UI/UX, voice search, one button click registration, and simpler payment modules in retail and digital also allow a consumer to convert from free viewer to subscribed viewer.

Effective Pricing Strategy

Pricing is one of the key factors for a subscriber to pay for an OTT platform subscription. 46% of participants in Deloitte's digital media trends survey said that a penetrative price was the most crucial factor while subscribing. Often viewers don't convert to subscribers either due to the fact that they were not convinced with the value of the pack price or they did not find the pack price tailored to their preference. Platforms need to constantly work on new pricing strategies and offer packages to suit dominant cohorts requirements.

Subscriber onboarding is the easier part of the journey, keeping them engaged and as renewing audience the bigger challenge. In 2021 the retention rates as per App Marketing 2021 Edition shave shown an overall fall across verticals by 12% and app uninstallation rates within 30 days appear to be on the rise as well. This means that the consumer is experimenting, fickle and hard to retain. Conversations around content discovery, recommendation cycles and pricing sensitivity would enable OTT giants to keep subscribers on board for extended periods and engage them with interest based content that they wouldn't otherwise hear of, increasing the retention rates.

While keeping tabs on all these aspects can help an OTT platform create a loyal customer base who in turn can also convert into content ambassadors, that will draw new subscribers to the platform. With a projected, 1.25 billion subscribers by the end of 2024, as per a forecast by Light shed Partners, no matter how far technology advances, word of mouth continues to be one of the most trusted and reliable sources of information for most people to this day.

The author is Divya Dixit, SVP - Revenue & Marketing at ALTBalaji