What to watch: how AI can give viewers a seamless streaming experience

This article is part of our Opinions section.

In today’s hyper-competitive streaming landscape, capturing audience attention is a constant battle. Deloitte’s recent Digital Media Trends report found that viewers are overwhelmed by choice, with churn rates hovering around 30% due to difficulty finding content. Studies have shown that UK viewers were spending more than 100 days of their lives deciding which TV shows and films to watch, while in the US some estimates have put that even higher at 45 hours per year (144 days across the average lifespan).

This translates to billions in lost revenue for operators each year.

As operators navigate in this fierce landscape and battle for attention, the answer to better engagement lies in innovating to deliver a seamless experience. AI-powered recommendations to navigate the content deluge, and the ability to seamlessly switch between devices without disruption, are a couple of examples beyond the traditional tactic of securing premium content and exclusive content rights (in sports for example).

But to deliver on this experience, operators need to overcome a number of challenges which range from the availability of development talent to the need to keep costs down.

Strategic investment for growth

Before operators move onto the innovation agenda, they’ve been re-evaluating their technology investments to focus on building operational scale, efficiency, and ultimately, increased revenue.

The goal is to deliver new features for better user experience, serve more content to more devices and markets, and grow advertising revenues, but recent research from Irdeto, in partnership with Caretta, found that to do this the aim is increasingly to first have a single, flexible technology platform able to serve all content, devices and customer segments.

80% of operators responding to the Caretta survey said they now have a single common backend platform to serve all devices and consumer platforms. This reflects the importance of flexibility, ease of integration, technology simplification, faster time-to-market, and lower total cost of ownership (TCO). In fact, TCO is by far the most important consideration for operators choosing their video platform. When considering the rate of subscriber churn, moving first on a scalable platform makes complete sense.

Beyond this, operator platform strategies are also building towards super aggregation and data-driven decision-making:

• Super Aggregation: the creation of a unified back-end system that seamlessly manages content from diverse sources eliminates fragmentation, streamlines operations, and reduces costs for faster deployment.

• Data-Driven Decisions: in today’s data-rich environment, consumer insights hold immense power. By leveraging data effectively, operators can personalize the user experience, leading to increased satisfaction and reduced churn.

A seamless viewing experience is key

Today’s viewers are bombarded with choices, and a seamless, frustration-free experience is no longer a nicety, it’s the key to loyalty.

While choice fatigue and information overload are real enemies of engagement. We’re increasingly seeing operators leverage advanced recommendation algorithms to empower viewers to discover shows they’ll truly enjoy. It’s easy to see how AI-powered recommendations can take these a step further and help cultivate a sense of personalized discovery, boosting satisfaction and keeping viewers coming back for more.

Frictionless viewing is also emerging as one of the cornerstones of a winning UX strategy; imagine a scenario in which you’re halfway through a captivating series on your phone during your commute. Arriving home, you effortlessly switch to your smart TV to continue on the big screen, without buffering interruptions or login hassles. With the right platform, building these seamless experiences becomes easier.

As operators work towards these enriched viewing experiences, a diversified revenue stream is of course important also for their long-term success. Viewers are wary of intrusive advertising that disrupts their experience, but operators that integrate targeted advertising models that blend into the viewing experience will also be able to tap into additional revenue opportunities. The onset of higher-quality user data also improves the likelihood of relevant advertising, resulting in a win-win situation that keeps both viewers and operators happy.

Overcoming the talent crunch

While in the past, technology priorities could have been met by limited in-house resources, the current landscape has forced a change of pace. According to Caretta Research, 70% of the operators surveyed have less than 100 engineers, and they’re typically focused on maintaining legacy technology stacks. To meet the transformation imperative and build on user experience, operators are somewhat dependent on third parties. Partnering with a strategic technology provider offers a significant advantage by leveraging a flexible, component-based stack that integrates the best the market can offer. Such partnerships ensure assured compatibility and are supported by a proven operating model, reducing both operational costs and time-to-market.

This approach allows operators to focus on core business objectives while ensuring access to cutting-edge technologies and innovations. By adopting a component-based strategy, operators can select the most suitable solutions tailored to their specific needs without the need for costly and time-consuming in-house development. Additionally, working with a partner with a deep understanding of the industry landscape provides access to the latest advancements and best practices, ensuring operators can adapt quickly to market changes and customer demands. This collaboration not only fosters innovation but also optimizes resource allocation, making it an essential strategy for overcoming the talent crunch and driving growth in a competitive market​.

In conclusion, the video entertainment landscape is undergoing a paradigm shift. The focus is no longer solely on content acquisition, but on crafting a seamless user experience that fosters engagement and loyalty. By prioritizing frictionless viewing, AI-powered recommendations, and being smart about monetization, operators can win the hearts and minds of viewers in this ever-evolving battleground.

More Opinion pieces

• KYB: Why accurate business verification matters for fintechs
• Why getting your app marketing right is crucial to digital transformation
• Do you want a career in the tech industry but don’t consider yourself technical?