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The impact of AI-powered personalisation on subscription-based TV platforms

March 18, 2025

Over the past decade, the way we consume television content has transformed dramatically. Traditional broadcasting has given way to subscription-based streaming platforms such as Netflix, Prime Video and Disney+, which have revolutionised the entertainment industry. One of the most significant innovations driving this change is the use of artificial intelligence (AI) to personalise content for individual viewers.

AI-powered personalisation has become a cornerstone of these platforms, enhancing the user experience and keeping subscribers engaged.

How AI-Powered Personalisation Works

AI-powered personalisation is the ability to analyse vast amounts of data and predict what content a viewer is most likely to enjoy. This process relies on algorithms that track and interpret user behaviour, such as viewing history, search preferences, and engagement with different types of content. By understanding these patterns, AI can recommend TV shows, movies, or documentaries that are tailored to the individual user’s tastes, preferences, and viewing habits.

Streaming platforms use various AI techniques, such as machine learning and natural language processing, to continuously improve the accuracy of these recommendations. Machine learning algorithms, for example, learn from users’ actions and refine their predictions over time. As viewers interact with the platform, the AI system becomes better at predicting what they will want to watch next, offering a more personalised experience with each session.

AI personalisation goes beyond just recommending content. It can also enhance the user interface, provide personalised notifications, and even optimise content delivery based on factors like location, device type, and time of day. This level of customisation makes the entire streaming experience feel more intuitive and user-centric. Similarly, industries like online gaming also utilise AI to personalise experiences. For instance, the best online casinos UK players visit use AI to tailor game recommendations and bonuses to individual player preferences, ensuring that each experience feels uniquely suited to the player’s interests and gaming style.

Benefits of AI-Powered Personalisation for Viewers

Enhanced User Experience

AI-driven personalisation significantly improves the overall user experience by saving time and effort. Instead of sifting through endless titles, viewers are presented with recommendations that match their unique preferences. Whether a user enjoys action-packed thrillers, family-friendly comedies, or niche documentaries, AI makes it easier for them to find content that resonates with their tastes.

Increased Engagement and Retention

By providing viewers with content that aligns with their tastes, AI-powered personalisation boosts engagement. The more relevant the recommendations, the more likely users are to spend time on the platform, watching content for longer periods. This increased engagement not only enhances the viewing experience but also drives higher retention rates. With competition in the streaming industry becoming fiercer, platforms that can successfully keep users engaged have a better chance of maintaining their subscriber base.

AI-driven personalisation can improve content discovery. Even with an extensive library of content, users might overlook titles that align with their interests simply because they are buried beneath other options. Personalisation solves this issue by surfacing hidden gems and niche content that viewers are likely to enjoy, helping to ensure that users get the most out of their subscription.

Cost-Effective Content Discovery

AI personalisation can help reduce the time and effort involved in content discovery, allowing viewers to find shows and films they might not have otherwise considered. This is particularly important given the ever-expanding library of content available on subscription-based platforms. Without personalisation, users might spend more time browsing than watching, which could lead to frustration and dissatisfaction.

AI-based recommendations help users explore a broader range of content, which can be beneficial for both the viewers and the streaming platforms. For viewers, it provides a more diverse range of options to enjoy. For streaming platforms, it can increase the likelihood of viewers watching less mainstream content, helping to increase the overall value of the subscription.

Benefits of AI-Powered Personalisation for Streaming Platforms

Improved Content Strategy

AI-powered personalisation not only benefits viewers but also provides valuable insights for subscription-based TV platforms. By analysing user data, streaming services can understand which genres, themes, and content types are most popular with different audiences. This information is vital for content production and acquisition strategies, helping platforms decide which shows and films to invest in or license.

Optimising Content Delivery and User Interface

AI personalisation can also optimise how content is delivered to users. For instance, the system can identify which types of devices a viewer uses most often—whether it’s a smartphone, smart TV, or tablet—and tailor the content delivery accordingly. The viewing experience can be adjusted based on screen size, resolution, and network speed, ensuring smooth streaming and minimal buffering.

Increased Revenue Opportunities

AI-driven personalisation can also open up new revenue opportunities for streaming platforms. By using advanced data analytics, platforms can implement more targeted advertising (for ad-supported models), optimising ad placements and ensuring that viewers are shown relevant ads. This improves ad engagement and boosts the platform’s advertising revenue.

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