Product Innovation Case Study
How do we improve our product experience to deliver growth?

Situation. A streaming provider experienced a backlash after making a substantial change in its business model. Growth was still high, but subscriber longevity was too short to have a viable long-term business model. The CFO needed to understand how to improve the subscriber experience in order to meet the CEO’s growth goals.
Insight. Scios Market was used to map the product offering attributes that had the greatest impact on sales based on the current offering and found their content experience was underperforming.
Insight Details. The analysis evaluated factors such as how big the variety of shows and movies is, was the show or movie new, exclusive content, etc., and found the following:

Viewers place the least importance on whether the content was exclusive and whether you could personalize the experience.
The most value was placed on pricing and whether the platform was easy and convenient to use. The content available was not far behind at all, but still held less importance. Question. What if we invested in more content?

Scios Market allowed for scenario tests - would price increases be healthy for the company, is advertising the way to go, would investing in new content bring back the most ROI? The model forecasted that investing in original content production would allow them to achieve their growth goals. Not only that, but it gave a precise number - they needed 80 original shows by 2018 to beat the competition and meet the CEO’s goals.
Prescribed Strategy. they needed 80 original shows by 2018 to beat the competition and meet the goals.
Impact. Met aggressive subscriber growth goals.
Additional Insights. Scios Platform gave additional information on how to optimize the marketing spend:
It recommend increasing TV investments by $20M, especially in DR TV​
TV and Display interactions differed over the year and there is a potential for increasing efficiency by better coordination​
Premium Cable media had the greatest negative impact on subscriptions​
Competitors' investment in changing perceptions poses a greater threat than efforts to raise consideration​
PR, WOM, and experience have a significant positive impact on perceptions and the base. “We need more than insight. We need to turn insight into daily action. Scios helps us deliver on those needs.”

President

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