Tackling value and friction in global media and entertainment
Author: Kate Morgan, Chief Product Officer and Head of Global Media & Entertainment at Magid
There’s an increasing awareness of the challenge in capturing the attention of consumers across all media forms. The streaming wars have only quickened the pace of disruption – and made competing an even more challenging proposition for many.
In this piece, I’ll dive into some of our most sought after insights to fuel you and your team as you prepare for 2020 – a year we feel will influence consumers’ media consumption habits almost as much as the advent of TV.
Accelerating change and churn
Management teams that know how to value content, specifically which content attracts and retains viewers, are holding the biggest advantage as the deluge of new services and compelling offers for those services are introduced with continued frequency.
Our 2019 Magid Video Entertainment Study found that when signing up for a streaming service, 43% of consumers intended to stay with the service for six months or less.
That same tracking study found that consumers have about two SVOD subscriptions now and are willing to subscribe to a handful of services at around $40 in the future. This certainly doesn’t leave much room in terms of financial appetite for new services.
Today’s kids, tomorrow’s media consumers
In our 2019 Magid Mobile Study, we found 13-to-17-year-old teens are more likely to recognize their smartphone addiction than are adults. Yet nearly a third of 8-to-12-year-olds said that they’d rather be in a room alone with their mobile device than in a room with their friends and no mobile device.
Our kids experts find that today’s kids are more diverse and multi-faceted than previous generations, seeking content that matches that level of diversity, while also holding media companies and personalities to high standards given their commitment to social consciousness.
Clearly, challenges lie ahead for media organizations that don’t navigate the intricacies of Gen Z.
Technology is great. Human solutions are better.
While consumers are continuing to engage in new behaviors, build new expectations, and seek customized solutions while adopting unpredictable patterns, past behavior isn’t always the best predictor. When technology is rapidly changing the idea of what’s possible and consumer attention is on the line, it’s time to consider human solutions.
We must leverage technology and new trends while providing solutions that solve for the greatest points of friction consumers face and deliver value greater than the competition.
Every decision a consumer makes is determined by a nonconscious weighing of points of perceived value against an equally expansive list of perceived friction points. The key to predicting human behavior rests in understanding which points of value and friction are in a consumer’s nonconscious evaluation set and how they rank against one another.
For a deeper dive into our other insights, download the Magid Value:Friction 2020 Report for Global Media & Entertainment.