Sunday, December 1, 2019

Subscription-based Sites Getting Harder to Scale

Currently developing a subscription-based portal - 4M Performance (scheduled to launch early 2020) - I wanted to impart what I faced when building, then managing a subscriber site.

Based on info from Statista https://www.statista.com
there will be over 198 million U.S. subscribers to pay-to-play platforms within three years - and growing rapidly.


Currently, online user video 'watch-time' averages five hours per day and is filled with incredible diversity, quality, and volume of content. It follows you from device to device throughout the day and video viewing has become personal.

That scale, rapid growth, and personalization puts incredible pressure on any new subscription platform despite better technology as consumer expectations are extremely demanding.  Subscribers want ease of use, TV-like experience, and flexibility.

From my experience, the biggest problem starts with the seemingly harmless login button. Once the subscriber hits the login a myriad of activity starts. Requests are initiated to directories, billing systems, rights management platforms, third parties that authorize access and other customer transparent technologies - that all need to work flawlessly.

To me, there are four critical areas that require attention:

1. Platform scalability:  High service availability and fluid responsiveness needs to be a primary design principal that is integrated into your identity and access management software at inception.

2. Capacity planning: How many subscriptions are expected and what kind of service levels are you targeting? Working backwards from this answer, your streaming services must stand up to load tests.

3. Failures: There needs to be a plan for how failures will be contained. For example, forcing the process into a temporary mode that can catch up once all systems are again available vs. just crashing. In short, every potential failure needs to be analyzed and problem-solved.

4. Early subscription tactics: The initial rush to subscribe and the resulting stress to the platform can be mitigated by encouraging early registration, using exclusive or  teaser content.

Access and ease of use by subscribers will drive customer loyalty - the lifeblood of any direct-to-consumer site. Here are several best-to-use tactics.

Customer engagement: A single login and ease of access across all content and data available. Also, reduce as many subscription and payment processing challenges as possible.

Lifetime Value: The sign-up page should serve as a utility that manages the full customer life-cycle. It should be integrated with reporting, email, and CRM systems. It should tell you who is engaged, who is likely to churn, and who needs a login reminder.

In summary, subscribers must be able to trust that your content will be accessible when it matters most. Additionally, it  must bestow a great experience as subscribers will be holding you to the same high standard that the mega- streamers are providing.

Hope this helps and good luck with you subscription platform.

Jim Lavorato, Founder 4M Performance


No comments:

Post a Comment