Three Ways Artificial Intelligence and Machine Learning Are Driving Content Production and Streaming
Anyone who subscribes to multiple streaming services or works with content producers has likely noticed the players in the industry are trying to optimize their business performance in as many ways as possible. Providers of content services must pay attention to their subscribers' wants, needs, and preferences in today's competitive landscape. A subscriber's goodwill is often lost as a result of the customer experience, which encompasses multiple aspects of the customer journey.
To this end, the Netflix's of the world, along with a host of video production houses that provide custom and stock B-roll, have begun utilizing data and insights gleaned from artificial intelligence (AI) and machine learning (ML) to maximize their abilities to compete for a rapidly expanding customer base.
"Content personalization is perhaps the most common example of applying AI to improving the customer experience," says Paul Erickson, Senior Analyst for Parks Associates. "Beyond content personalization, there are numerous use cases for which AI-enabled insights can improve different aspects of the customer experience."
A subscriber's data can be ingested and analyzed in any number of ways to gain a more comprehensive, more in-depth understanding of the subscriber's wants, needs, and behavior, according to Erickson.
"This deeper understanding of the subscriber can then drive more precise and effective personalization of content offerings, advertising, dynamic pricing, product and service offers, and more."
In his most recent article on digital & physical media, streaming devices and services, home and pro AV, Erickson lays out three ways artificial intelligence and machine learning are powering content production and streaming.
Revenue optimization is a no-brainer but can be a challenge for companies in the OTT video services market, especially given the amount of effort needed to analyze and gather insights from a range of big data sources.
"For services, AI solutions can automate the process of driving optimal revenue through several business aspects of video distribution and/or service provision - such as driving smarter recommendations, reducing churn, creating more advanced subscriber segmentation, optimizing content, increasing trial conversions, and reducing customer acquisition cost," advises Erickson.
And for content distributors, Erickson believes using AI to track, analyze, report, and audit license-based revenue can speed up and simplify the process. "Solutions that utilize AI-enhanced data can maximize revenue generation for either business perspective by reducing the speed and overhead costs of data analysis and minimizing revenue loss."
The backbone of any service company is audience retention and media distribution is no different. Satisfied subscribers are the key to long-term retention.
"A vital factor in retaining customers is having a fresh and constant supply of individually relevant content," Erickson points out. "AI and ML can facilitate the identification of content most relevant to both individual subscribers and segments of the larger subscriber base and also aid in predicting and driving the content suggestions that are likely to generate maximal revenue for individuals and customer segments."
A third AI and ML-based tool necessary to the success of content streaming and production entities on any level is audience analysis and this is likely the biggest one. Because of the complexity and variability of the current OTT video landscape, such as shifting streaming video consumption patterns among different age groups, potential differences between pre- and post-pandemic video consumption and subscription behavior, and ever-escalating competition, services need to be able to analyze their audience and detect patterns and anomalies to solve potential problems or take advantage of new opportunities as soon as possible.
To discover how pre and post-pandemic video consumption is trending, along with other nuggets revealed by Parks Associates, read Erickson's original piece here, and be sure to click over to AVIXA's Xchange to discuss content streaming and all things AV.