Business Imperative: Paths to Profitability
When it comes to content discovery in streaming platforms, recommendations and search capabilities are central to user satisfaction. But now, generative AI is powering innovative solutions across the industry. From personalizing experiences and mitigating churn, to sustaining and growing subscription and advertising revenues, all the way to streamlining operational and content creation costs; gen AI represents a paradigm shift..
With Google Cloud’s gen AI solutions including Vertex AI, we’re enhancing audience experiences by creating highly personalized and relevant content recommendations so viewers spend less time choosing and more time watching.
With so many options, consumers often experience subscription fatigue making them unwilling to continue to subscribe and pay for more platforms. As a result, we’re seeing a rise in advertising video on demand (AVOD) and free, ad-supported television (FAST).These models offer consumers a cost effective way to view content, while allowing content providers to reach relevant audiences across the platforms that viewers value most.
As providers begin introducing new advertising tiers,65% of viewers revealed that not only do they prefer personalized advertising, but they’ve come to expect it. Personalized recommendations can take into consideration specific elements like content titles and scenes, leading to a more contextual and personalized advertising experience for the individual consumer. Additionally, 64% of viewers are more likely to keep watching the service if ads feel more relevant to them. As the industry evolves and tries new business models, optimizing advertising will be ever more critical than ever for media companies.
Redefining the Streaming Wars
Fortune Business Insights estimates the video streaming market will grow to nearly $1.7 trillion USD by 2029. While the streaming wars are only just beginning, how it’s fought is changing. With so much on the line, creating hyper-personalized viewing and advertising experiences is essential to connecting with users, and cementing a platform’s long term success. Entertainment companies need not go it alone.
Google Cloud is here to help media & entertainment companies, whether they’re video streaming platforms, audio streamers, broadcasters or news publishers. We’re committed to leveraging AI to find practical solutions to solve their most pressing business challenges. Since launching access to our large language models (LLMs) through Vertex AI earlier this year, companies have been streamlining many of the tools and processes they use today, and unlocking new understandings and insights across their teams.
To learn more about Google Cloud’s solutions for media & entertainment companies visit our website here.
