Recession and subscriber ‘guilt’ over ‘luxury’ services to test OTT brands’ growth
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| 25 August 2020
The second part of a study into the current over-the-top (OTT) arena by subscriber intelligence firm Singula Decisions is warning that with a global recession looming, and people’s needs changing post-lockdown, services such as Amazon, Disney+ and Netflix, are set to face a power struggle with subscribers.
singula 25Aug2020
Moreover, it suggests that consumers are often left feeling ‘powerless’ and ‘guilty’ over costs associated with (OTT) TV subscription services, which can fuel brand discontent and disconnection, and that brands need to tone down ‘masculine’ qualities and be less transactional in order to truly connect with subscribers.

The second in a series of three reports on the Psychology of a Subscriber, focuses on ways brands can grow their revenue and customer base. The study reveals, as indicated in the earlier study, how TV streaming services continue to exhibit narcissistic traits, displaying an abundance of ‘masculine’ qualities – defined as forward energy – doing, acting, creating – but very little in the way of ‘feminine’ qualities such as receptive energy, nurturing, supporting and listening.

The findings also highlight how much work OTT brands will have to do to convince customers to remain loyal. Indeed it notes the possibility of a ‘saturation slump’ whereby subscribers no longer get the same pleasure from the service. To rectify this, the report advocates a more balanced approach that seeks to understand customers’ emotional and psychological needs through better customer experience, and ultimately create a connectedness with OTT brands.

Consumers also bemoaned the fact that brands quickly disappear once they have signed up, only hearing from them when there is a financial issue, such as a price hike or upgrade option. The findings indicate that this is precisely the moment when brands should be listening and engaging with customers. This said Singula is particularly true now when OTT subscription services – which assumed ‘necessity status’ during lockdown – may be deemed ‘luxury’ items again as families tighten their belts and resume in-person socialising.

How brands behave moving forward will determine whether or not these new attributes stay, and the extent to which the OTT subscription monthly bill will be considered in the same class as the electricity bill said report author and director of QualiProjects, Jennifer Whittaker.

“It’s important to consider the impact of the Covid-19 lockdown, where subscribers began seeing OTT TV as a necessity rather than a luxury, as subscriptions were fundamental to experiencing positive feelings in the midst of negativity and uncertainty,’ she added. “Brands must tune in to what subscribers truly want – financial transparency, better customer experience, more freedom and choice – if they are to support this change in the long-term.”

“OTT brands are missing a trick when it comes to building a loyal and passionate fan base at the moment the relationship is ripe with opportunities to grow services and protect revenues,” added Singula Decisions CEO Bhavesh Vaghela, offering comment upon the new version of the report. “After sign-up, the real challenge of building long-term relationships with customers begins, but brands are often too focused on monetary transactions. There are big opportunities at many key moments in the customer journey for them to demonstrate positive values – an ability to listen, empathise and act – and become more relatable in the eyes of customers.”