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.
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.
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:
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:
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