Ep. 29: Magnus Svensson - Insights on Retention, Data, and Innovation

Magnus Svensson, a media consultant at Eyevinn Technology, recently shared his insights on the evolution and current state of the video streaming industry in an interview with the Retention Zone podcast. With over two decades of experience working with Ericsson and as an independent consultant, Svensson has witnessed the industry come full circle, from a mix of subscription and ad-funded models to the rise of Netflix's disruptive subscription-based model and back to a hybrid approach.
One of the key takeaways from the interview is that while churn is a relatively new concern in the streaming industry, it may not be as big of a problem as initially thought. Svensson believes that as long as companies are aware of churn and can handle it effectively, they can retain subscribers. He emphasizes the importance of a mix of content, including live events, sports, and on-demand offerings, to drive viewership and maintain subscriber interest.
Svensson notes that the competition in the streaming market has increased significantly, not just from traditional players but also from user-generated content platforms. He explains, "The ease of making video productions has made the flora of options so much higher than we've seen before." This increased competition has led to a renewed focus on ad-funded models and the importance of viewership metrics alongside subscriber numbers.
Another important aspect Svensson highlights is the growing use of data and AI in the streaming industry. He observes that while companies were initially focused on collecting data, they are now starting to utilize it effectively to draw conclusions and identify patterns in user behavior, content preferences, and churn. Svensson believes that the application of AI and machine learning will become increasingly crucial in helping companies make data-driven decisions and improve their services.
Regarding the future of the streaming ecosystem, Svensson predicts a shift towards bundling and packaging services. He states, "I see that Netflix, in the countries where they start with advertising, they're more happily involved in a telco bundle or a package in some form. So again, the loop is closed now, and suddenly that's interesting to be part of a package again." This trend towards bundling is evident across both sports and video-on-demand content.
When asked about the most innovative developments in the streaming industry, Svensson points to advancements in production workflows and the integration of production and distribution chains. He explains, "Everything from content coming into the platforms, we see that they are distributed more efficiently. And all these things where I see most of the innovation coming now is actually on the production side, how to make production simpler, remote workflows, actually combining the production chain with the distribution chain."
In conclusion, Magnus Svensson's insights provide a comprehensive overview of the current state and future direction of the video streaming industry. As companies navigate the challenges of churn, increased competition, and the need for data-driven decision-making, the industry is likely to continue evolving and innovating to meet the changing demands of consumers.

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wonderful conversation.