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Subscriber Science™

The streaming video business has been characterized by the pursuit of volume; scale has been prized over profitability and margins. No longer.

It has become clear that streaming margins are lower than anticipated, and Wall Street and media executives are now more focused on growing value over volume, on ARPU and operating margins.

Our Subscriber Science™ practice enables clients to better understand, predict and manage churn and retention to increase revenues and drive business growth.

Five Pillars of Magid’s Subscriber Science™ Framework

1) Analytics-driven Insight

Magid’s decision-focused quantitative research marries the “what” of subscriber retention and churn to the “whys” of consumer attributes, product needs and perceptions, and promotion and pricing in order to break down the causes of subscriber success into its component parts. Our Volatility Index reveals which services have more or less exposure to subscribers with a higher propensity to churn.

2) Subscriber Segmentation

Consumers enter into subscription relationships with inherently predictable commitment patterns, before ever using a new service. Magid has done the work of clustering the subscription marketplace into groups not only based on differentiated subscription outcomes, but also by needs, motivations and decision-drivers. Strategically leveraging this work to optimize the mix of acquired customers can result in millions of dollars of incremental revenue for our clients.

3) Churn KPI Tracking

With the right “why” data, the “what” of retention and churn is highly predictable. Magid has broken down and analyzed the consumer, product, and pricing factors that best predict churn, and has assembled them in a monthly tracking tool, delivered as a highly sensitive and illuminating dashboard to help drive our clients’ tactical customer management strategy.

4) Machine Learning based Predictive Churn Model

Magid has used factor analysis and reduction, along with advanced modeling techniques, to develop a predictive churn model that delivers with validated precision each month. Without human intervention, the AI-driven model retrains itself based on the most recent business data and refines its predictive algorithm, foreseeing outcomes for an entire competitive landscape. A helpful tool for financial planning and for connecting subscriber ROI to the levers that drive it.

5) AI-Powered Simulation + Scenario Planning

Magid’s Subscriber Science tools equip clients with a more nuanced understanding of the relative impact of different strategies on revenue, margin, and overall growth. Our Churn Simulator puts scenario planning in the hands of brand managers, allowing them to test the impact of shifts in investment from one approach to another, helping to point them to the most efficient, revenue-driving strategies.

Let's Talk Subscriber Science

We’re ready to deliver value over volume for you.