Marketing Science Is the Path to Profitability for Subscription Media

Subscription media companies are struggling to keep up with the rapid pace of change in their industry.

Leaders in media and entertainment must optimize to drive profitable growth, harnessing the potential of artificial intelligence (AI) and precision analytics to drive value. For the 10 biggest streaming platforms, average acquisition dipped from a year-over-year growth of 51% in 2020 to single-digit rates in 2023. Research from Boston Consulting Group reveals that the highest performing subscription media companies had the following in common: They successfully identify and retain high-value customers, with 30% lower churn rates than others, and roughly half break even on their customer acquisition costs (CAC) within a year, as they excel when it comes to marketing efficiency.

After interviewing over 100 senior leaders in publishing, gaming, video, and audio, Boston Consulting Group discovered several common challenges. Just under a third of leaders reported struggles with performing incrementality testing, which made it difficult to discern which parts...