JMM 632 Final: Streaming Flashcards
What is “glocal”?
Mixture of local and global considerations.
Define streaming and OTT
Streaming is a method of transmitting data from the internet directly to a user’s computer or phone screen without the need to download it.
Over-the-top (OTT) refers video service refers to the delivery of video content over the internet, bypassing traditional television platforms, allowing viewers to access video content directly through the internet using mobile devices.
What is SVOD?
Subscription Video On Demand (SVOD)
services offering on-demand streaming content [for] which users pay a subscription fee. (Examples include Netflix and Hulu)
what is AVOD?
Advertising-based video on demand (AVOD):
Streaming offering free on-demand streaming content that includes advertisements. Examples include: Tubi, Freevee.
what is TVOD?
Transactional Video On Demand (TVOD)
Streaming offering free on-demand streaming content for purchase [electronic sell-through or EST] or rental on a pay-per-view basis [48 hours]. Examples include: renting or buying movies on Amazon Prime or AppleTV+
What is FAST?
Free Ad-supported Streaming Television (FAST)
Streaming offering free live linear streaming content that includes advertisements. Examples include: Pluto TV, Roku Channel
Is there still a real difference between AVOD and FAST? Why so or not?
Yes, FAST and AVOD differ in content distribution. FAST provides free linear viewing or programming supported by ads while AVOD offers on-demand libraries with ad-supported plans.
What revenue models do streamers use?
Mixed revenue model because they use a combination of monthly subscriptions, advertising revenue, sponsorships, licensing deals, etc.
Explain the four suggested strategies to improve streaming profitability.
- Bundling
- Increasing subscription prices
- Offer an ad-supported tier
- Reduce the cost of making original content investment (usually done through licensing, international content, sports content)
Define churn. Why is it a problem?
Churners are users that frequently cancel their subscriptions before the free trial ends. It’s a problem because it directly impacts a company’s revenue and growth potential because churners use the service without paying.
It also means that customers are not satisfied with the content available in the streaming platform and that the company has no strategy to retain customers.
Streaming companies then need increase subscription prices to make up for lost revenue but retention rates decrease with customers who are unwilling to pay higher prices for their services.
What is the formula for churn?
(number of lost subscribers during a given month/number of paying subscribers at the start of the month) x 100 = churning rate %
