January 31, 2024
As media companies push to generate positive cash flows for their direct-to-consumer streaming businesses, almost 50% of executives in the streaming industry claim they are lacking the data needed to make good business decisions, according to new data from Parks Associates.
Specifically, Dallas-based Parks found that fragmentation of information across myriad data points stymies executives’ ability to properly analyze and make decisions regarding increasing advertising, raising prices, and related bottom-line decisions regarding content acquisition and production. Indeed, 71% of industry executives say it is difficult to see all of their streaming-related data in one place.
“Nearly half of industry executives do not have the data they need, in the way they need it, to make the best business decisions possible,” Jennifer Kent, VP, research, Parks Associates, said in a statement.
Companies that own or aggregate television and video assets distribute their content across 18 platforms, on average, so fragmentation in their data sources creates numerous and ongoing headaches for them when trying to make informed decisions about their services and subscribers.
For example, 78% of streaming executives said content performance by title is or would be “very useful” but just 46% said that data is fully accessible to them.
Not surprisingly, artificial intelligence, or AI, is seen as a possible solution to the aforementioned data issues. The need for media companies to manage, optimize, and predict content revenue performance across all distribution models, including FAST, AVOD, SVOD, TVOD, pay-TV, and broadcast, suggests incorporating emerging AI tools, according to Mark Moeder, president of the SymphonyAI media division, which markets software providing first- and third-party data-driven on audience engagement and content preferences.
“Access to accurate, complete, and current data is the cornerstone for making good business decisions,” Moeder said in a statement.
Parks is partnering with SymphonyAI to offer insight into the streaming market.
“Currently data is not optimized to enable informed decision-making, and these gaps are limiting the full potential of this market,” Kent said in a statement.