CASE IN POINT: YOUTUBE RED
Last year Google’s You Tube entered
the OT T subscription fray by introducing
its own subscription VOD service called
Red. While You Tube Red certainly won’t
replace the ad-supported free version of
You Tube that consumers know and love,
it does provide an opportunity for users
to stream content without ads.
In the past, You Tube made most of its
revenue from advertising. However, even
with its much-boasted 1 billion viewers,
You Tube doesn’t turn a profit, though it
does manage to break even, according
to the Wall Street Journal. Offering a
subscription-based streaming service now
enables the business to earn additional
revenue and reach new audiences.
What’s more, You Tube Red has joining
Netflix and Amazon in creating its
own scripted content. In addition to its
original murder mystery series “Escape
the Night,” Variety reports that YouTube
is developing a new action series with
Dwayne “The Rock” Johnson and a new
sci-fi thriller series from Hollywood
director and producer Doug Liman.
“Consumers are embracing paid
A FRICTION-FREE EXPERIENCE
subscriptions for ad-free content at
an incredible pace,” said Robert Kyncl,
You Tube’s chief business officer.
“[This] marks an evolution in our
desire to give fans more choice and
features that they love.”
What’s next for You Tube? Multichannel
News reports that Google is getting ready
to launch a skinny bundle pay TV service
for the You Tube platform and already has
at least three major broadcast networks
on board. Stay tuned.
As OT T offerings continue to evolve
and improve, consumer expectations
are on the rise. Along with a seamless
viewing experience, consumers also
want uninterrupted content and easy
payment facilities. If your OTT platform
fails to provide this, you risk disrupting
the viewing experience that customers
are trying hard to achieve.
If your company is planning to
navigate the OT T maze, you should
consider utilizing a high-quality
recurring billing service to help
monetize your content while growing
and retaining your subscribers.
Payment issues can seriously disrupt
the customer experience and lead to
involuntary churn, so it’s critical to
work with a subscription billing vendor
that offers agile payment facilities and
sophisticated subscriber retention
technology. This will allow your
customers to continue their services as
long as possible, thereby maximizing
customer lifetime value.
Consumers can quickly become
frustrated when their service is
disrupted for reasons that could be easily
avoided, for instance, exceeding their
credit limit. Utilizing a subscription
billing solution with robust transaction
resolution logic can greatly reduce this
friction and substantially increases the
success rate of your OT T transactions.
In the future, more consumers will
be able to benefit from OT T viewing on
connected TVs, computers, and mobile
devices with easy access to all the
content they desire, when they desire it.
To be successful in navigating the OT T
landscape, your business will need to
make sure that you keep up with the
growing competition by offering user-friendly, accessible, and reliable services.
Vindicia brings enterprise-class innovation to
consumer-facing subscription billing to help
OTT providers and other online companies
acquire and retain more customers by making
payments seamless, secure and easy. Vindicia
keeps consumers connected to the subscription
services they love, and businesses connected
to the subscription revenues they need. Vindicia
has processed more than $21 billion globally and
generates over $90 million in annual incremental
revenue for clients. Vindicia clients include the
BBC, Lionsgate, Comic-Con International,
TransUnion Interactive, Allrecipes, IAC, Vimeo,
and Next Issue Media’s Texture service. For
more information visit www.vindicia.com.