Content Recommendation is the most heard term in the e-marketplace right now. The right recommendation at the right time can help your website traffic earn more leads, and increase sales. Don’t you find these reasons enough to integrate a content recommender system into your website or application? I will guide you through ins and outs of the recommendation engine and how it helps boost the video streaming market. I’ll also share examples of different platforms that are getting a boost in revenue integrating recommender systems.
A Brief Introduction to Content Recommender System
A content recommender engine is a tool that helps with recommending content to the users who visit a website based upon their interest and behavior on the website. It suggests content under a particular section of the website such as Recommended Videos, Other Movies you may enjoy, etc. A content recommender offers a personalized content catalog and suggestions to website visitors to optimize their experience. It uses various filtering methods to recommend content to the users such as:
- Content-based filtering – Makes recommendations based upon user’s likes and dislikes
- Collaborative filtering – Makes recommendations based upon how similar a user is to other users.
- Hybrid filtering – Uses the mix of both content-based and collaborative filtering to make the most precise recommendations.
Role of a Content Recommender Engine in the Streaming Media Industry
A recommender engine is one of the most important aspects of streaming media businesses. It offers an easy and reliable method to personalize users’ experience by suggesting content based upon their interest and this, in turn, helps streaming media businesses to improve brand awareness, time spent on the website, and improve user engagement.
A website or an application uses content recommendation to get three major outcomes:
- Personalized recommendations
- New content discovery
- Better content analysis
And all of these three outcomes lead to customer satisfaction, which in turn boosts revenue.
How Content Recommender is helping streaming media platforms?
Here, we will discuss the names of some popular streaming media platforms that use recommender systems to boost their revenue and are growing exponentially.
Netflix is a streaming media service provider that offers streaming content like movies, web series, TV shows, Video-on-demand, and many more through a subscription model. It uses an AI-based recommender system to keep its viewers engaged and reduce cancellations. The use of a recommendation engine has helped them to reduce their churn rate.
Netflix also discovered that the engagement rate on top personalized content recommendations was four times higher than just offering viewers the list of most popular contents. In addition to that, users were also exposed to four times as many videos using personalized content recommendations.
Recommendations allow Netflix users to find their favorite content easily on their screen rather than searching it manually. This maximizes user engagement and provides a higher lifetime customer value.
HBO MAX is also a popular streaming media platform that provides movies, TV shows, etc. with a subscription model. They also benefited from the recommendation system and were quickly able to engage maximum users on their platform. They used a recommender system to provide a personalized experience to their customers and keep them engaged throughout their lifecycle. This helps HBO in user retention and boosts revenue flow.
Hulu is also one of the most renowned streaming media businesses that distribute television series, movies, and other popular forms of content online. Hulu also captures noteworthy value through its content recommender system, which it continuously works to improve.
Hulu endeavors to recommend content to its end users according to their interests and also helps content owners to promote their videos. Hulu uses data to recommend content and generate daily reporting on the quality of those recommendations. Hulu has evolved as a market leader by providing exact content recommendations and is recognized as one of the rapidly growing OTT platforms.
As we discussed, a good content recommendation system can boost visitors on a streaming media platform, increase user engagement, greater brand awareness, as well as more leads and conversions. So, recommender systems were, is, and will be an advantage for streaming media platforms.
Curl up with Muvi’s Recommendation Engine – Alie!