Dynamic Paywalls

What would happen if we started having? dynamic paywalls For streaming services? “AI can start optimizing paywalls and subscription offers based on my (user) behavior, thus maximizing revenue and minimizing friction for our user experience,” says CEO Liat Benz-Zur. LBZ Consulting.

from user data, machine learning and productive artificial intelligence can create offers based on consumption patterns. Some companies are dabbling in this, but we now have the technology to really start improving this.

“Everybody’s talking about this workflow automation and efficiency,” says Ben-Zur. But the more interesting discussions concern business model innovations. “How can we use AI to not only improve what we already do today, but also to find new content distribution opportunities?”

We should look at personalization content licensingUsers can access and pay for content based on specific needs, or create AI-powered content marketplaces where large media companies can leverage generative AI to connect creators with relevant audiences and facilitate new transactions. “All the business models of the past, all the ways you reached your customers, all the platforms are still the priority platforms of today,” Benz-Zur said. he says. “Artificial intelligence is either disrupting this or accelerating some efficiencies. “What we haven’t figured out yet is how to use AI to innovate business models.”

Dynamic paywalls can be adjusted based on the viewer’s viewing propensity. If you’ve watched enough other episodes of a show in one sitting, Roku will provide the content ad-free. Other services have premium subscription levels to provide early access to new programs.

Any service that chooses to use dynamic paywalls can A/B test to see what consumers will be interested in (specific content, removal of ads, getting early access to content, or other special privileges). A data loop can provide more detail about what a person or group will consider valuable. Currently the data loop consists of: “I watch your content, I give up, and you never know why.”

When subscription prices rise, reactions occur. Consider how testing various other revenue generation strategies can generate goodwill if done correctly. This can increase consumer engagement and learn what they value and what they don’t. The data collected can transform a streaming service’s business.

Many companies and industries use dynamic pricing, such as airlines, Amazon, Uber, and even advertising; where the value of CPMs depends on various factors (content type, audience demographics, location, time of day) and the price may increase. Bidders decide that the placement is more valuable.

Piano uses generative AI to help companies understand consumer behavior. It helps identify the best segments to target with a paywall or allow free access by providing page view rankings based on expected ad revenue and subscription revenue. This “automatic revenue optimization” uses trend models based on user and content types. The company also works with subscription and ad revenue data. This is the kind of insight the streaming industry needs.

piano and Digiday’s 2024 “State of Publisher Revenues” report A survey was conducted with 76 publishing professionals. They found that respondents plan to use ad revenue optimization platforms, machine learning user propensity models, and AI-powered personalization engines in 2024. Additionally, 82% said they plan to use adaptive and dynamic pricing, such as paywalls and ad optimization.

One FT Strategies study Two out of 35 publishers in Europe and North America found that dynamic paywall usage has increased by 20% in the last 5 years. “This is most common (e.g. in North America) with dynamic models that lock content and/or display different prices based on user interaction. New York Times, Wall StreetJournalor Globe and Mail).”

Offerings need to be consistent, transparent and designed to serve the audience. Anything else will cause consumers to complain the same way they do when subscription prices increase.

Related Articles