Churn reduction algorithms to define next generation of analytics
Details
Editor
| 26 March 2018

A survey from Rethink Research has found that as they battle to be as consumer-friendly as the likes of Netflix, Amazon and Hulu, pay-TV providers are making strategic and significant investments in analytics technologies.

The research suggests that the analytics industry has moved on from the first stage of its evolution whereby operators would use a discrete app offering a visual representation of how well their video content was is currently being delivered through the use of a real time visualisation dashboard.

Instead, operators are now using analytics tools to anticipate individuals who might churn because they have had some aspect of the experience which was not ideal and creating a formula for automatically preventing this churn.

Rethink Research believes that this application goes straight to the bottom line of every operator and that the next phase of growth will be driven by churn reduction algorithms, using this data to slow down churn.

It sees this evolving to the point where the marketplace will move towards the creation of generic data warehouses in the cloud, which individual silo applications tap into from every department in a media company, such as purchasing and planning of media, through to store fronts and network planning and selection.

The analyst calculates that in the US, some 89% of pay OTT subscribers already have video QoE analytics reporting on their apps, giving the US a global market share of some 47%. Europe is in second place with 31% of the market and Asia Pacific is slowed down by a preponderance of AVOD offerings in China. The Rethink Research study also found that thatcurrently in China there are around 1.2 billion AVOD accounts and at last count around 120 million SVOD subs.