With the competition for viewers so intense, the need for compelling, standout TV content to attract and retain subscribers and users has become paramount. However, this comes at a significant cost to TV and OTT operators as more providers are competing for Content Rights and valuations have rocketed over the past decade.

Live sports events with a strong ‘Appointment to View’ remain very valuable to TV operators but acquisition costs are high. Popular series have the capacity to add new customers, improve churn and increase wider engagement but quality, original, scripted programming is expensive, whether it is created or bought.

Whilst the impact of highly salient individual Premium Rights can usually be crudely understood in terms of customer acquisition, retention and ratings, the vast bulk of content spend is much more difficult to assess. Most user viewing behaviour will take place within a portfolio of content, rather than a single piece of content. And, from our extensive analysis, high reach does not necessarily equate to high engagement. Understanding the value of each piece of content in your key viewer portfolios and, more importantly, the impact of viewing portfolios on subscription and advertising revenue is a vital capability for the modern TV operator.

ThinkValuation helps optimize Content spend based on its contribution to customer loyalty

Our solution creates content value behavioural segments that enable the impacts of content to be analyzed and assessed in portfolio form, not just by individual programs or genres.

Outputs from the ThinkValuation Engine enable you to negotiate content deals with a clear view of enterprise value, using supporting intelligence of how viewing to a piece of content or set of rights translates to revenue. This improves your negotiating hand and assists in building the optimal content portfolio that supports the achievement of income targets without incurring cost by super-serving customer segments.

ThinkValuation allows you to:

• • Evaluate what the acquisition, creation or loss of a content asset would mean to your P&L, either through subscription or Ad revenues or both

  • Understand how any asset works as part of the total viewer’s portfolio

  • Find out whether the lack or loss of any particular asset likely to trigger churn

  • Establish the profile of customers that might be positively or negatively affected by the acquisition or loss of an asset

  • Identify channels or programming that could be dropped, saving costs that are greater than any lost ARPU through churn

  • Re-balance content costs by determining which customer profiles don’t watch particular content but remain stable and loyal

  • Deduce the relative value of Rights, value combinations of Rights and understand which Rights maximise customer numbers

  • Determine the fewest Rights that satisfy all customer groups

  • Single out the Rights that are super-serving the customer base

  • Inform mitigation strategies in the aftermath of losing a Right such as who to target with offers and the best alternative Rights