Consumer cancellations of subscription video services drives media companies to new monetization strategies

Households embraced streaming media in recent years with many having multiple subscriptions. But as inflation rises and household budgets tighten the signs of a slowdown in subscription video on demand (SVOD) services have begun. Savvy organizations are using advertising video on demand (AVOD) propositions to drive subscriber growth or help maintain lower price point offerings to help stymie churn. SAS® 360 Match helps media companies with these monetization strategies.

Supporting subscription and advertising business models

“We are seeing increasing churn and cancellations in SVOD subscriptions and a move towards more advertising funded or hybrid ad-supported propositions,” said Steve Perks, Head of Advertising Technology at SAS. “SAS is the only global vendor to provide a full AVOD ad management platform, SAS 360 Match, and an enterprise grade customer data platform to support advanced first party audience segmentation management for both ad targeting and subscription marketing capabilities.”

SAS 360 Match delivers a first-party ad serving platform for AVOD that is fully integrated with SAS’s customer data platform (CDP), marketing planning and strategy, and customer journey optimization technologies to streamline the entire customer engagement process – from advertising through marketing engagement and, ultimately, conversion.

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Building out the TV platform of the future

Today, it’s increasingly important for companies to take ownership of their technology stacks, particularly in high growth areas where the big five vendors are both suppliers and competitors to the traditional industry. And this is nowhere more so than in the addressable TV market.

“There’s considerable increase in market capitalizations for media companies that have made technology investments and developed their own IP in this area, becoming less dependent on the product strategies of their tech competitors and potential government competition and regulatory impact,” said Perks.

In order to meet the needs of the world’s largest broadcasters and the future of addressable TV, SAS 360 Match:

• Is a fully auto-scaling, cloud-based solution that adjusts in real time to audience fluctuations, providing a cost-competitive solution for linear addressable TV and live simulcast environments while meeting the challenge that mass viewing events provides.
• Is provided by SAS, an independent technology vendor, that does not have any advertising-dependent business models, such as SSPs, DSPs, ad networks or TV propositions that compete with clients for advertising revenue.
• Provides a neutral position in the market and can help provide maximum revenue potential for broadcasters through proprietary solutions and digital ecosystem partner relationships.

“We have had huge success with the SAS 360 Match ad server in the Czech Republic market partnering with five out of the top 10 Czech publishers,” said Matej Novak, CTO at Cruxo and former Managing Director at the Czech Publisher Exchange. “Its true independence is highly appreciated by the publishers who want to be truly in control of their own inventory, unrestricted with vendor policies. 360 Match is also very versatile which means publishers can offer a wide variety of ad products and business models. And its S2S integration with SSPs, without any revenue share fees, together with native support of prebid make it also a great tool for programmatic.”

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