1、RetentionRulesThe Streaming IndexU.S.Only2Samsung Ads is offering an in-depth view into the streaming trends and viewer motivations that matter most.The Streaming IndexStreaming Index-Retention Rules01Retained users are key to app growth.53%of an apps active user base is retained users.These users r

2、epresent over 70%of an apps viewing time.In any given month,nearly half of an apps active users are at risk of churning.On average,churned users are 7x the size of an apps active user base.Streaming services are competing for extremely limited shelf-space.Nearly half of streamers say they have acces

3、s to 4 or more streaming services but 62%say they use 3 or fewer services on a regular basis.The current economic climate is causing streamers to be more cost conscious.A service being free or low cost is the#1 reason why streamers will try a new app.A service being too expensive is the#1 reason why

4、 streamers will cancel or stop using an app.Streaming has become the top choice for TV viewing.On a year-over-year basis,weve seen time spent with streaming increase by 31%.At the same time,the available audience of new streamers is decliningthe percentage of new user share among an apps active user

5、 base is down-12%year-over-year.The focus must shift to retaining users.Rich audience insights will help TV app marketers focus on targeted messaging to start the long game of audience retention and loyalty.HVOD is the future.Hybrid VOD services-those with tiers of pricing and ad load-have greater r

6、etention.SummaryStreaming Index-Retention Rules02Streaming Index-Retention Rules*Denotes Samsung Smart TVs wherein the user has opted-in to receive interest-based advertisingMethodologyFor this analysis,the universe is TV apps on Samsung Ads 45 million opted-in*U.S.Smart TVs.Included are ad-free sub

7、scription-based(SVOD)apps,ad-supported(AVOD)apps and apps that offer both an ad-free and ad-supported subscription tier(HVOD).Excluded are:apps with an exclusively transaction-based business model(TVOD);and apps that fell below a minimum threshold to provide meaningful results.03New User ShareRetain

8、ed User ShareChurn RatioReturned User ShareThe percentage of active TV app users in a given month who have not used that app in the previous year.The percentage of active TV app users in a given month who have used the app in the previous month.The percentage of active TV app users in a given month

9、who had used the app sometime in the past 12 months but did not use the app the previous month.The Churn Ratio compares an apps churned users-the number of users who have used the app in the 5-12 month period prior to the current month,but not since-to the active user base of that app for the curren

10、t month.The analysis focuses on four metrics,each calculated based on the monthly average for Q3 2022 with comparisons to Q3 2021:Streaming Index-Retention RulesMethodology04We supplemented behavioral insights on Samsung Smart TVs with an attitudinal survey to shed light on motivations.One thousand

11、owners of Samsung Smart TVs in the U.S.,who are also streamers,agreed to be surveyed in Q4 2022.The marketing opportunities for large TV apps are different from those with smaller audiences;and different for TV apps with sub-scription-based(SVOD&HVOD)business models compared to those which are ad-su

12、pported(AVOD).In addition,we distinguish betweenTV apps business models:Tier 1:The top 20%of apps based on average monthly user countTier 2:The next 20%of apps based on average monthly user countTier 3:The 60%of apps with the smallest average monthly user count SVOD(Subscription video on demand):Vie

13、wership of video content through a service that requires a paid subscription.Often this model does not have advertising,and funding is secured through subscription fees.AVOD(Ad-supported video on demand):Viewership of video content through a service that requires no,or a reduced paid subscription,an

14、d is instead fundedby advertising.HVOD(Hybrid video on demand):Viewership of video content through a service that offers an option of subscription services at different price levels.Some levels have advertising while others do not.To differentiate between these apps,wehave divided TV apps into three

15、“tiers”:Streaming Index-Retention Rules05IntroductionThe final months of 2022 mark a pivotal moment in television.Streaming has become the clear future of TV as Americans continue to shift their viewing away from pay TV and the broadcast and cable networks.Yet the pandemic streaming flywheel,in whic

16、h consumers adopted streaming while staying at home and media companies created new streaming services to support demand,has created a glut of subscription options.In the inaugural publication of this report,we detailed how this adoption of streaming has made it difficult for the largest services to

17、 find new users.Now,as viewers settle into streaming habits and inflation puts pressure on their budgets,Americans are evaluating how many services they subscribe to,and how much they want to pay for them.It is time for streaming services to shift their focus to retention.Ad-supported streaming,incl

18、uding linear options via free ad-supported streaming services,has grown in popularity,and now accounts for more viewing time than ad-free,subscription video on demand.In response to all of these factors a new,hybrid video on demand app model has taken hold.HVOD apps offer consumers more choice by in

19、corporating an ad-supported tier at a free or reduced price.By the end of 2022,every major streaming service will offer consumers an ad-supported subscription option.The hybrid model works to attract consumers based on their interest,engagement,and willingness to pay.As streaming services vie to be

20、one ofthe limited number of go-to apps that consumers use,the wide adoption of the HVOD model marks an important turning point in the evolution of streaming.This in turn poses a marketing challenge to TV app creators and marketers.They must now pivot from audience acquisition,to focus on retention a

21、nd engagementtheir ticket to building robust audiences and increasing lifetime viewer value.Streaming Index-Retention RulesAs streaming matures,user retention is keyWith nearly all Samsung households now watching streaming content,growth for this sector will come from increased usage and time spent.

22、Indeed,our data show that viewers are streaming more regularly and for more time.In the third quarter of 2022,the average monthly number of streamers on Samsung Smart TVs increased by+17%versus the year prior.Time spent with streaming content increased by+31%.This growth in audienceis great news for

23、 streaming services.But with the continued increase in streaming choices,acquiring and retaining loyal users becomes more challenging.Streamers are settling into regular viewing patterns.On average,23%of streaming services active monthly users were new in Q3.This is a decline of-12%compared to a yea

24、r ago.Just over 50%of users are retained users-watching at least once a month each month.This is a key audience for services as these viewers account for nearly three-quarters of an apps total monthly viewing time.06Year-Over-Year ChangeStreamingtime spentAveragemonthly streamers+31%+17%Source:Samsu

25、ng Ads Proprietary ACR,U.S.OnlyUser shareTime share14%New users73%Retained users13%Returned users23%New users53%Retained users24%Returned usersFor Tier 1 apps,retained users are even more important.They represent 69%of the user base and account for nearly 90%of the viewing time.Streaming Index-Reten

26、tion Rules6How do streaming services keep users engaged with their app?Content remains the key driver of engagement,but cost is emerging as a factor thats just as important as frequency of new content and ease of use.07Audience shareTime spent shareRetained users86%69%83%60%66%45%Tier 1Tier 2Tier 3S

27、ource:Samsung Ads Proprietary ACR,U.S.Only.Samsung Ads U.S.Streamer Survey,Q4 2022Reason why a streaming service is used more than others15%The service has a deep library of the content I view most15%The service has content not available anywhere else14%The service lets me catch up on shows that I m

28、issed on cable or broadcast TV12%The service has new content frequently10%The service is easy to use10%The service is free or is lower cost than other servicesThe service does a good job recommending content to me9%8%The service has content that most people are watching7%The service does not contain

29、 ads?Streaming Index-Retention Rules08Consumers are still looking for their go-to appsOn linear television,viewers regularly watch 15-20 channels.In streaming,competition for viewers is much more fierce.Nearly half of streamers report that they have access to 4 or more streaming services but 62%say

30、they use 3 or fewer services on a regular basis.User acquisition is just the first step in audience development.Streaming services must compete to become one of the few apps that viewers watch on a regular basis.Once acquired,as we see above,retaining those viewers leads to significant consumption a

31、nd value.To get a sense of just how much audience is flowing in and out of apps,we calculate a Churn Ratio.The Churn Ratio compares an apps churned users-the number of users who have used the app in the 5-12 month period prior to the current month,but not since-to the active user base of that app fo

32、r the current month.In Q3 2022,across all streaming apps,the Churn Ratio was a 7:seven times as many users have churned out of an app than are currently using it.Underlining the increasing competition in the space,this figure is up+46%com-pared to a year ago.OverallChurn RatioQ3 2022 by Tier1.79.73.

33、5Source:Samsung Ads Proprietary ACR,U.S.Only4.87.0The largest of apps(those in Tier 1)have a significantly lower Churn Ratio 1.7 but this is up+27%versus last year.Tier 1Tier 2Tier 3Q3 2021Q3 2022Source:Samsung Ads U.S.Streamer Survey,Q4 2022.18%The service has original content that I cant get anywh

34、ere else16%The service has content I normally watchon cable or broadcast TV15%I can download the service as an app on my TV without connecting another device13%The service comes packaged at no cost with another product or service I purchased9%My friends talk about and use the serviceI see Ads or pro

35、motions for the service8%The Birth of HVODJust as the pandemic was instrumental in accelerating viewer preference for streaming,the current recessionary economic environment is playing a role in the decision streamers make in sticking with or trying new services.When it comes to deciding which servi

36、ces to try or cancel,cost tops the list and has become even more important over the past year.09Cost is even more of a factor when a streamer decides to cancel or stop usinga streaming service.Over the past year this has become significantly more of a reason with 49%more streamers stating this as th

37、e#1 reason to cancel.Top reasons to TRY a new streaming serviceTop reasons to CANCEL a new streaming service18%New content is not as frequent asother services16%Service is too difficult to use11%Not enough original content I cant find anywhere else10%Ive viewed all the seasons of a particularseries

38、and will re-subscribe when a new season premieres8%Service doesnt have an app I can download to my TVDoesnt have enough library content for the genres I watch most8%21%The service is free or has a low cost#1 Reason to TRY a new streaming service30%Service is too expensive#1 Reason to CANCEL a stream

39、ing serviceStreaming Index-Retention RulesSamsung Ads Proprietary ACR,U.S.Only.Samsung Ads U.S.Streamer Survey,Q4 2022.10Likelihood to switch to lower priced ad supported subscriptionVery likely40%Likely35%Unlikely19%Very unlikely6%Streaming Index-Retention RulesThis economic pressure on viewers bud

40、gets coincides with a growing adoption of ad-sup-ported streaming.In Q2 of 2022,ad-supported VOD(AVOD)consumption surpassed SVOD for the first time.Enter the hybrid VOD service.HVOD services offer a“hybrid”of economic options for users,from more expensive ad-free tiers to lower-priced or free tiers

41、that include advertising.By the end of 2022,all of the Tier 1 apps will be HVOD.While user acquisition likely drove the adoption of ad-supported tiers by these apps,the HVOD model also supports retention.Giving consumers a choice of subscription tiers is proving to be more successful at keeping user

42、s coming back on a monthly basis than a one-size fits all,SVOD or AVOD only model.This will become more pronounced if inflation continues to weigh on consumers and they evalu-ate the number of services that they pay for on a monthly basis.This sets up the future of the streaming wars as a balancing

43、act of content and price.The HVOD services that we analyzed have a retention rate of 63%of their active audience,growing 6%year-over-year.Both AVOD and SVOD-only services(offering only one subscription tier)have lower retained user shares.When asked,three-quarters of streamers who subscribe to an ad

44、-free service would switch to a lower priced,ad-supported option if given the option.6%YOY0.3%YOY2%YOYHVOD63%SVOD59%AVOD49%Retained user shareStreaming Index-Retention RulesWhat you should be doing right nowThe future for streaming is robust but streaming services have a slew of challenges to tackle

45、 in 2023.As TVs streaming era matures,viewer retention has emerged as thelatest battle in the streaming wars.Here are the actions TV app marketers should taketo get ahead in 2023.11Be sure to remain top of mind to your users.Continue to message the value of your service even after the app discovery

46、process.Identify at-risk users and target them with your differentiated value and offers.Target light users with messages to encourage increased app engagement.Give new and existing users reasons toopen your app first.Ensure that your app is present and easily accessible and dont rely solely on cont

47、ent awareness to drive opens.Give users pricing options so they switch within your service instead of churning out.ActionIn any given month,nearly half of an apps active users are at risk of churning.345Challenge2Competition is fierce consumers have just 34 go-to apps.Streamers have access to more a

48、pps than they choose to use on a regular basis.Streamers are open to ads if thatmeans saving them money.Acquisition is just the first step forapp marketers.Target new and lighter streamers often to keep them engagedwith your content.1Retained users are key to app growth.Streaming Index-Retention Rul

49、esSamsung Ads is an advertising ecosystem spanning hundreds of millions of smart devices across TV,mobile,and desktop.With the largest single source of TV data in the market,we not only have more,we have double the TV data scale of the next largest competitor.Our unrivaled understanding of consumers,powered by exclusive Samsung data and insights,drives more engagement and delivers more results.With Samsung Ads,advertisers can achieve reach,scale,and precision in every connected moment.Samsung Ads.12Get in touch at About Samsung Ads