Personalised experiences at scale: How GenAI transforms media subscription models

For years, media and information services companies have wrestled with a fundamental tension: customers demand personalised experiences, but delivering them at scale has been prohibitively complex and expensive. Enter Generative AI (GenAI) - a transformative force that enables media businesses to hyper-personalise content recommendations, predict churn with uncanny accuracy, and dynamically adjust pricing based on user behaviour.

This shift is not just about delighting customers; it’s about survival. A Zendesk report reveals that 70% of consumers are more likely to spend more with companies that offer fluid, personalised, and seamless experiences. Conversely, 73% of consumers will switch to a competitor after multiple bad experiences, underscoring the critical need for effective personalisation. Meanwhile, research from the Reuters Institute shows that subscription fatigue is a growing challenge, with an increasing proportion of surveyed users actively managing or cancelling media subscriptions due to a perceived lack of value. The question is no longer whether media companies should embrace AI-driven personalisation but how well and fast they can scale it.

Keeping subscribers hooked: Enhancing media subscription models beyond great content 

The subscription economy has exploded—just ask The New York Times, which now boasts over 10 million subscribers. Yet, the challenge remains: while acquiring new subscribers is hard, keeping them is even harder. The industry-wide churn rate for digital media and entertainment subscriptions hovers around 25%¹, with customers often dropping off due to content fatigue, irrelevant recommendations, or price sensitivity.

Companies that get personalisation right are already seeing results. Spotify, for instance, has built an ecosystem of AI-driven content recommendations that keep users engaged longer. Their AI-driven "DJ" feature takes this further by offering real-time commentary and suggestions, increasing user listening time by 25%. Similarly, The Financial Times uses AI-driven dynamic pricing, tailoring subscription costs based on reader engagement levels and maximising revenue without increasing churn.

Build loyalty with media subscription models that understand customers 

The end goal of AI-driven personalisation isn’t just more revenue, it’s a better customer experience. A personalised, frictionless experience fosters loyalty, increases engagement, and ultimately turns subscribers into long-term advocates. When customers feel understood and valued, they stay.

Imagine a subscriber who receives a newsletter summarising news in a tone and depth perfectly aligned with their reading habits or a B2B customer getting real-time industry insights contextualised to their specific interests. GenAI enables these hyper-personalised experiences at scale, creating deeper engagement and reducing churn.

From a customer lifecycle perspective, this transformation has three major benefits:

1. Higher conversion rates

   GenAI-powered onboarding adapts in real-time, tailoring welcome messages, content suggestions, and trial experiences based on user behaviour to maximise conversion.

2. Lower churn

   Instead of relying on static churn prediction models, GenAI enables dynamic interventions, such as AI-generated re-engagement emails, personalised offers, or even automated content summaries tailored to users at risk of disengagement.
   
   

3. Optimised pricing

   GenAI refines dynamic pricing by continuously learning from user interactions, delivering offers and bundles that align with individual preferences and perceived value.

Five ways to implement your GenAI ambitions into action 

The journey to Generative AI-powered personalisation can seem overwhelming, but small, strategic steps can make a big difference. Here’s how media and information services companies can begin:

1. Audit existing customer data

   Assess what customer data you currently collect and identify gaps. Start small by using AI to enhance existing recommendation engines rather than overhauling systems immediately.

2. Run a personalisation pilot

   Select a specific subscriber segment and test AI-driven content recommendations or dynamic pricing in a controlled environment.

3. Invest in predictive churn analytics

   Use AI to analyse historical subscriber behaviour and flag early signs of disengagement. Deploy targeted interventions, such as tailored offers or exclusive content, to keep at-risk users engaged.

4. Enhance AI training with human oversight

   AI alone won’t get personalisation right immediately. Establish human-in-the-loop mechanisms to refine recommendations and pricing strategies iteratively.

5. Measure and refine continuously

   Define clear KPIs (e.g., engagement rates, churn reduction, lifetime value) and track improvements over time, adjusting AI models as needed.

The future of media subscriptions is not about one-size-fits-all models, it’s about intelligent, adaptive, and deeply personalised experiences. GenAI isn’t just a nice-to-have; it’s the new imperative. The media leaders who embrace it today will be the industry powerhouses of tomorrow.

Are you ready to transform your media subscription models with Generative AI? At Clarasys, we specialise in helping businesses leverage cutting-edge AI technologies to enhance customer experiences, reduce churn, and drive sustainable growth.

Explore our customer experience transformation and subscriptions management services or get in touch to find out how we can help you to implement effective media subscription models powered by AI.

References

1. Stripe 2023, Customer churn rates 101: What churn means for subscription businesses