Metrics YOU CAN’T MISS as a Product Manager
What are the common metrics for the OTT Platform?
3 min readJan 24, 2024
Common metrics for the OTT Platform
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Engagement:
- Average Viewing Time (AVT): Total watch time / Total Viewers
(Formula: ∑ Watch Time / ∑ Viewers)
Business implication: Measures content stickiness and user satisfaction. Higher AVT indicates engaged viewers and potentially binge-worthy content. - Completion Rate: Videos watched to completion / Videos started (Formula: Completed Videos / Started Videos)
Business implication: Gauges content effectiveness and completion satisfaction. High completion rates suggest engaging narratives and well-paced content. - Churn Rate: Lost subscribers / Total subscribers at the beginning of a period (Formula: Lost Subscribers / (Beginning of Period Subscribers))
Business implication: Reflects subscriber loyalty and platform appeal. Lower churn indicates satisfied users and effective retention strategies.
Content Performance:
- Popularity Index: Weighted average of views, watch time, and completion rate for a title
(Formula: (α * Views) + (β * Watch Time) + (γ * Completion Rate))
Business implication: Helps prioritize content investments and identify audience preferences. High popularity scores highlight content resonating with viewers. - Acquisition Cost per Stream (ACPS): Marketing spend / Total streams (Formula: Marketing Spend / Total Streams)
Business implication: Measures efficiency of content promotion efforts. Lower ACPS indicates effective targeting and content discovery strategies. - Genre Consumption Patterns: Percentage of total watch time spent on specific genres (Formula: Genre Watch Time / Total Watch Time)
Business implication: Reveals viewer preferences and potential content gaps. Understanding genre trends informs curation and acquisition strategies.
Monetization:
- Average Revenue per User (ARPU): Total revenue / Average number of active users (Formula: Total Revenue / Active Users)
Business implication: Measures revenue generation per user. Higher ARPU indicates effective monetization strategies and a valuable subscriber base. - Conversion Rate (Free Trial to Paid): Free trial users converted to paying subscribers / Total free trial users (Formula: Paid Conversions / Free Trial Users)
Business implication: Shows effectiveness of the trial period in attracting paying customers. High conversion rates suggest compelling content offerings and a smooth subscription process. - Customer Lifetime Value (CLTV): Average revenue per user over their lifetime (Formula: Average Revenue per User * Average Customer Lifespan)
Business implication: Predicts long-term financial value of users. High CLTV indicates loyal customers and successful retention strategies.
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