Latin America. During 2020, the year starring the Covid-19 pandemic, many users have decided to subscribe to video on demand platforms, OTT, due to the variety and quality of their content. The streaming pioneer, Netflix, was joined by the launch of Disney+, the consolidation of Amazon Prime Video, HBO GO, and the upcoming launch of new platforms, such as Paramount+.
Locally, it is observed how the subscribers to Flow, Pluto, Movistar Play, ClaroPlay and DirectvGO are significantly increased. This trend will accelerate in 2021 in the region. Faced with a saturated offer, with endless possibilities, a new type of audience is born: The Boomerang consumer.
Dominic Sunnebo, Global Consumer Insight Director at Kantar states that users "see VOD platforms as something 'interchangeable'. The "boomerang" consumer is born, so ensuring long-term loyalty will be a priority if the subscription model is to be sustainable over time in the face of an increasingly competitive scenario.
A clear example of this competitiveness is the strategy generated by Disney jumping from the big screen, with more than 60 million subscribers during its first year of operation, to its Disney+ platform with blockbusters, such as Mulan, Soul, the complete Marvel saga and Star Wars, among others, for a single fee. A positive and early reaction is sought from the consumer can favor its consolidation.
Around 74% of VOD subscribers mainly watch new series and given the robust content offer on various platforms and a limited budget, consumers must choose between increasing the number of paid subscriptions, switching from one platform to another or subscribing and canceling the subscription later.
According to data from the DIMENSIÓN 2020 study generated by Kantar, 73% of consumers declare that they are subscribed to a TV and video content platform, whether free or paid. And, while almost half of them (44%) are subscribed to two platforms, data that may reflect the current dominance of Netflix and Amazon Prime globally, the percentage decreases in the case of subscription to three (18%) or four platforms (7%).
"What does the future hold?" Dominic Sunnebo questions, "with the increase in the trend of the "boomerang" subscriber, the function of the content aggregator gains prominence. The partnerships of Sky-Netflix and Disney+-O2 in the UK, with the advantage that consumers do not need to subscribe individually to various services, have already been essential to getting new customers." Subscribers become the protagonists and the production companies return to the fight to gain their attention. A consumer who does not see his needs met is at a remote control to supply them. "This is no longer a winner-takes-all market, and collaboration will be key to long-term success."
On the other hand, from the perspective of brands, according to Agustina Servente, Media Domain Lead at Kantar Insight Argentina "with more and more consumers consuming streaming content, brands will inevitably have to think of ways to insert themselves within Connected TV platforms, although they will first have to understand how and when to do it, depending on their target audiences and the objectives of their campaign."
In this, the company Kantar contributes to creating a tangible link with the information coming from Entertainment on Demand through the audience segmentation service Audience Activation. Understand the different stages of the customer subscribed to such a platform, which lead to long-term engagement, high engagement and positive promotion, as well as measuring the dynamics and overall success of individual services in the SVOD sector. The service is available in the United States and the United Kingdom, with implementation plans for Germany, France, Spain and Japan in 2021
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