The Battle of the Screen: An Analysis of Customer Satisfaction in the Streaming Industry

Abstract

The streaming industry has seen exponential growth, driven by changing consumer preferences and technological advancements. Despite this growth, companies like Viaplay face significant challenges in maintaining customer satisfaction, retention, and engagement due to intense competition and shifting market dynamics. Viaplay's recent financial struggles, marked by a loss of 6,5 billion DKK, highlight the urgency of adopting a structured and effective strategy. This thesis investigates how Viaplay can enhance customer satisfaction, retention, and using the Extended Performance Satisfaction Index (EPSI) model. The study integrates qualitative insights from semi-structured interviews with quantitative survey data. The qualitative analysis explores consumer perceptions and behaviors, providing a thorough understanding of customer needs and preferences. The quantitative analysis tests hypotheses related to key drivers of customer satisfaction, perceived value, loyalty, and engagement. The research also incorporates an external analysis using PEST and Porter's Five Forces frameworks to examine broader market conditions affecting Viaplay. These external factors shape Viaplay’s strategic responses and operational decisions. Key findings indicate that content quality, service reliability, and competitive pricing are critical drivers of customer satisfaction. Personalized recommendations and exclusive content significantly influence customer loyalty and engagement. The analysis underscores the importance of addressing specific customer segments differently with tailored strategies. The thesis offers strategic recommendations for Viaplay, including targeted content production, improved user interface design, and strategic pricing adjustments. These aim to align Viaplay’s services with consumer expectations. The study highlights the need for Viaplay to refine its strategy to meet market demands and mitigate financial loss. By examine Viaplay’s challenges and opportunities, this research contributes to understanding customer behavior in the streaming industry and offers actionable insights for Viaplay to navigate the competitive landscape effectively.