Many Internet TV services are seeing a bump in subscriber sign-ups from shelter-in-place viewers. The next order of business is turning those new customers into faithful users. The CEO and CTO of FirstLight Media explain how they are using AI-assisted discovery to help their customers boost engagement and increase customer lifetime value.
This is the second part of my interview with FirstLight Media co-founders CEO André Christensen and CTO Juan Martin. In the first part, they explained how Firstlight is using AI to improve video encoding. In this part, they discuss how AI and machine learning can boost engagement and customer lifetime value (CLV.) (See below for definitions of terms used in this piece.)
Chapter 1: About FirstLight Media (00:40)
FirstLight Media is an end-to-end cloud video delivery platform. It started life as QuickPlay and was acquired by AT&T in 2016. In March of 2020, the technology was spun out of AT&T and became part of FirstLight Media. Machine learning and AI is a foundational part of the FirstLight platform.
Chapter 2: Why engagement matters (2:30)
Mr. Christensen explains that it is important to understand what engagement means. For example, a video provider must know which content is popular and why people are watching it. Firstlight has created a metric that defines what they mean by engagement.
Chapter 3: How AI can boost engagement (5:20)
Mr. Martin discusses the components required to create an engaging experience. He also explains how Firstlight uses AI to help filter the massive amounts of feedback information to use it to guide recommendations and UI configurations.
Chapter 4: Do AI-enhanced experiences work? (7:10)
Implementing AI-assisted discovery experiences can improve engagement between 30% and 60%.
Engagement – A shorthand term for how much a customer uses a video service. It is usually measured in minutes and can be given as viewing time per session or viewing time per day or week. Other metrics related to engagement are video starts per session and viewing days per week. Higher values are better for a video business.
Customer Lifetime Value (CLV) – The amount of money earned from a customer over the time they had a relationship with your business. Higher values are better for a video business.
Artificial Intelligence (AI) – A system that mimics human-like abilities and behaviors.
Machine learning (ML) – An application of AI that can automatically learn and improve based on its experiences.
Encoding – a process to convert and compress video data into a form appropriate for streaming and storage.