London – Spotify announce their results tomorrow, and investment analysts Oppenheimer predict that Spotify share price will rise, resulting in profits for shareholders. In spite of increasing share prices, competing music streaming service Apple Music recently announced that it had overtaken Spotify in terms of paid subscribers in the U.S.
Subscription spend tripled in the past year across the UK as 89 percent of British adults have registered for a subscription service.[1]. The growing popularity of the subscription model can be attributed to the convenience it provides consumers.[2]
Subscription based businesses are honing-in on subscriber behaviour to personalise their offerings, which has given them an advantage over traditional services, and enables them to create and maintain long-term relationships with their customers.
New data from Ofcom has revealed video streaming services such as Netflix and Amazon Prime now have more viewers than traditional pay TV services, andpeople are spending less time watching television.[3] Subscriptions to the three most popular online streaming services reached 15.4 million in Q1 2018, overtaking the number of pay TV subscriptions at 15.1 million.
Pini Yakuel, Founder and CEO of Optimove comments: “This next generation of consumer prefers a personalised, on-demand product. The one-size-fits-all model no longer works, both in terms of product offering, and in terms of customer engagement. “
“Subscription businesses have access to vast amounts of data, enabling them to provide a service that traditional businesses are unable to offer. In order to continue gaining traction, subscription businesses’ focus must be on increasing longevity by nurturing long-lasting relationships with subscribers, and increasing the value of the product they offer their customers. This can be achieved by leveraging the data at these companies’ disposal in order to create a variety of product offerings that are relevant and appealing to each and every one of their distinct customer personas.”
Pini continues: “Traditional TV needs to change just like marketing did in the last decade—viewers are presented with whatever is broadcasted when they switch on. The Netflixes and Spotifies of the world have access to data that enables them to provide their users with product offerings that are tailored to their traits, affinities and preferences. Personalisation is key when competing in a challenging market place. Understanding your customers and catering to each one’s unique traits is crucial when looking to increase loyalty and build meaningful, long-lasting customer relationships.”
About Optimove
Optimove is the Science-first Relationship Marketing Hub, used by over 300 customer-centric businesses to drive measurable growth by scaling customer engagement. Optimove combines the art of marketing with the science of data to autonomously generate actionable insight, empowering marketers to deliver highly-effective personalized customer marketing campaigns across multiple channels. The company’s unique technology suite helps marketers maximize customer spend, engagement, retention and lifetime value. Optimove is used by leading brands of all sizes, including lastminute.com, Go Compare, Stitch Fix, Deezer, bwin.party, Graze and many others.With over 180 employees in New York, London and Tel Aviv, the company has grown 60% in revenue over the past year, and recently secured a $20M round in growth equity. More information is available at www.optimove.com.
[3] https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2018/streaming-overtakes-pay-tv
