Lifecycle Marketing for Entertainment Companies

In the entertainment industry, one question often stands out: how do you keep your audience coming back for more? With endless content choices and platforms competing for attention, viewers are overwhelmed with options. A 2024 survey found that 62% of respondents believe there are too many streaming platforms, and more people are actively reducing the number of subscriptions they keep.

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In this crowded landscape, retaining viewers takes more than just great content—it requires a strategy that keeps them engaged, strengthens their connection with the brand, and builds long-term loyalty.

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Lifecycle marketing plays a key role in addressing this. To understand how entertainment companies can use it effectively, we sat down with Rahul Lath, who led Data Science and Engineering at WWE. With over a decade of experience in the media world, Rahul shared his insights from his time at WWE on how companies can use lifecycle marketing to create lasting connections with their audience and foster long-term loyalty.

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Understanding the Business and Defining Success Metrics

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Before launching lifecycle marketing campaigns, companies must first define their business model and success metrics. The way an entertainment platform makes money—whether through ads or subscriptions—shapes its entire marketing strategy.

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Most platforms today exist on a spectrum, with free ad-supported (FAST) models on one end, maximizing reach and ad revenue, and premium ad-free services on the other, relying on high-value subscriptions. Many, like Netflix and Disney+, now offer both ad-supported and premium tiers to balance revenue and audience growth.

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Ad-supported platforms like Tubi, PlutoTV, and Roku prioritize engagement to maximize ad revenue. Their success depends on driving frequent visits and long watch times.

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Subscription-based platforms like WWE Network, Netflix, and Hulu, on the other hand, focus on retention. Their lifecycle marketing revolves around reducing churn with tactics like weekly episode reminders and content discovery prompts that increase perceived value.

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Lastly, audience characteristics—such as device preferences (smart TVs vs. mobile), geographic location, and age—shape how campaigns are delivered and consumed.

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Defining Success Metrics

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Success in entertainment marketing comes down to measuring the right things. Across both models, three key measurement areas define business success.

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1. Audience Growth & Retention

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For ad-supported platforms, retention keeps ad views high. For subscriptions, it drives recurring revenue. Companies should track:

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• Sign-ups & subscriptions: Show how well acquisition is working.
• Tier movement: Track upgrades to higher tiers and downgrades to lower tiers.
• Churn & retention rates: Indicate when and why users leave.
• Opt-out cost (cancellations, unsubscribes, app deletions): Losing users costs money, especially if acquiring them was expensive.

‍2. Engagement & Content Consumption

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More engagement means more ad revenue or fewer cancellations. Pay attention to:

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• Total hours watched: The clearest sign of content success.
• Revisit frequency: Are users coming back daily, weekly, or barely at all?
• Cross-platform behavior: Knowing where users watch (mobile, web, TV) helps improve content strategy.
• Time to video play: Shows how quickly users find something to watch – a sign of how easy discovery and search are.
• Content completion rate: Shows how often people finish what they start – a sign that the content is good and keeps them interested.

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3. Marketing Impact & Revenue Contribution

Marketing isn’t just about driving engagement—it needs to show real business impact. Every campaign should tie back to revenue and growth. To understand what’s working and where to optimize, companies must analyze:

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• Revenue per user (RPU): How much each user contributes through ads, subscriptions, or purchases.
• Incrementality testing: Compare users who get marketing vs. those who don’t to see the real impact of campaigns.
• Cost per campaign: While lifecycle marketing campaigns often have low costs per message, the real expenses can come from creating and personalizing the content for each campaign.

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Data, Segmentation and Personas

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Data to Collect

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At the heart of lifecycle marketing lies user data, which provides valuable insights into audience behavior and preferences. Entertainment companies should collect data on:

• Viewing habits: How long users watch content, which genres they prefer, and how frequently they return.
• Device preferences: Understanding whether users stream content on mobile phones, tablets, or smart TVs can inform how campaigns are tailored.
• Interaction patterns: Monitoring actions like adding shows to a watchlist, skipping episodes, or abandoning content mid-viewing helps identify opportunities to re-engage users.

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Segmentation Approaches

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Rahul emphasized that audience behavior isn’t one-size-fits-all—some users watch consistently, while others engage only for specific shows or events. Identifying these patterns is key to effective segmentation.

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To turn these patterns into actionable insights, entertainment companies can segment users based on:

• Lifecycle stages: New sign-ups, recently authenticated users, and dormant viewers.
• Engagement levels: Weekly hours watched or app visit frequency.
• Content preferences: Genres, episodic vs. event-based viewing habits, and user affinity.
• Geography and device: Matching campaigns to regions and preferred viewing platforms.

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Building Personas

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Personas allow entertainment companies to tailor messaging for different audience segments, ensuring content and campaigns resonate with the right users. They can be built based on:

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• Behavioral personas distinguish between casual viewers (occasional users) and high-frequency viewers (power users who binge-watch content regularly).
• Lifecycle stage personas group users based on where they are in their journey, such as free unauthenticated users, authenticated users, or paid subscribers. We will explore this in detail later in the article.
• Device and content-based personas focus on preferences like mobile bingers or living room viewers who consume content on larger screens.

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Pro Tip: Leveraging Content Metadata

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Each piece of content has its own set of characteristics—genres, actors, release dates, and more. By associating this metadata with user behavior, companies can create precise recommendations. For instance:

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• A user who enjoys action movies starring specific actors might receive suggestions tailored to their preferences.
• Episodic series fans can be nudged to catch up on earlier seasons before the release of new episodes.

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Mapping the Customer Lifecycle Journey

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In the entertainment industry, success depends on guiding viewers through a seamless journey—from discovering your brand to becoming loyal advocates.

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1. Exposure – The first interaction where users discover the brand through ads, social media, or free content. The goal is to grab attention and spark interest.
2. Sign-Up – Convert visitors into known users by collecting emails, driving app downloads, or encouraging account creation. A smooth sign-up process boosts conversions.
3. Activation – Encourage users to take key actions like watching a full episode, returning within a week, or engaging with multiple content pieces—strong indicators of future retention.
4. Retention – Keep users engaged by delivering content that fits their interests. Metrics like hours watched and visit frequency measure success.
5. Expansion – Deepen engagement by nudging users to explore new genres or shift from mobile to larger screens for a better viewing experience.
6. Loyalty – Build long-term affinity. Loyal users engage consistently and often become advocates, recommending the platform to others.

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Mapping these stages ensures a seamless transition for viewer. However, for this journey to succeed, converting anonymous users into known ones is essential.

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Turning Anonymous Visitors Into Authenticated Users

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In our conversation with Rahul, we explored three key approaches to authentication.

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Progressive profiling is essential for reducing friction in the sign-up process. Start with minimal information (e.g., an email address) and request additional details as users engage more. This approach keeps barriers low while gradually building a richer user profile.

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Threshold-based nudges drive timely authentication. Allow users to watch a limited amount of content—such as two free videos—before prompting them to create an account. This balances user convenience with conversion goals.

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Content gating makes authentication non-negotiable for premium content. Exclusive shows or live events should be locked behind sign-ups, ensuring that high-value content directly drives registrations.

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Channels & Strategies for Communication

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Entertainment companies can drive engagement by leveraging the right channels strategically.

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Channel Choices

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1. Push Notifications: Immediate and effective, making them ideal for promoting time-sensitive content like live events or premieres. For example, notifying users that a show they follow is starting in 10 minutes can drive tune-ins in real-time.
2. Email: Best suited for nurturing engagement over a longer period. Weekly newsletters can highlight new releases, personalized recommendations, or exclusive sneak peeks. For example, a user who enjoys thrillers could receive a curated list of new thrillers on the platform.
3. SMS: Direct and have high open rates, making them ideal for urgent updates. For instance, an SMS reminder can inform users about an upcoming event or encourage them to resume a series they left unfinished.
4. In-App Messaging: Deliver real-time prompts while users are actively engaged. For example, a user who stops watching halfway through an episode might see a message encouraging them to finish or add it to their watchlist.

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Personalization Techniques

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Personalized messaging is crucial to driving engagement. Entertainment companies can optimize communication by:

• Behavior-driven triggers: Automatically send reminders for unfinished content or suggest similar shows to ones users have completed.
• Excluding already-watched content: Avoid redundancy by ensuring users only see recommendations for new and relevant content.
• Device and content affinity: Suggest high-definition content to users watching on smart TVs or bite-sized videos to mobile users.

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Top 5 Campaigns for Entertainment Industry

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Rahul shared five essential campaigns that entertainment companies should prioritize. Each campaign should serve a clear purpose, ensuring it drives both user engagement and business goals at different stages of the customer lifecycle—from onboarding to re-engagement.

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1. Welcome Series

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The welcome series sets the tone for a user’s journey. These emails or messages should guide new users through the platform, highlighting key features, content categories, and recommendations. For example:

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• A user signing up via a mobile app could receive tips on how to cast content to a smart TV.
• For returning users, the welcome series could suggest picking up where they left off.
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2. Activation Nudges

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Encouraging users to take key actions within the first week is crucial. Examples include:

• Prompting users to watch another video within a specific timeframe to establish a habit.
• Encouraging users to switch from mobile to a larger screen for a richer experience.

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3. Tune-In Campaigns

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These campaigns focus on driving engagement with live events or newly released content. Push notifications and SMS messages are highly effective here. For instance, a notification like, "Don’t miss the season finale—live now!" creates a sense of urgency.

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4. Re-Engagement Campaigns

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Dormant users who haven’t interacted in a while can be reactivated with personalized recommendations or exclusive offers. For example, an email campaign could say, “We noticed you loved thrillers—check out these new releases!”

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5. Win-Back Campaigns

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For users who’ve canceled subscriptions or significantly reduced engagement, win-back campaigns can entice them with special offers. Highlighting nostalgia, such as reminding users of favorite past shows, is a proven tactic.

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Optimize for Long-Term Success

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Short-term campaigns can spark interest, but long-term success requires ongoing optimization and continuous improvement. Lifecycle marketing is not a one-size-fits-all solution; it requires constant testing and refining.

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Incrementality Testing

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Rahul explained that measuring the true impact of marketing requires a controlled approach. One of the simplest yet effective methods is to create a global hold-out group—a small percentage of users who receive no marketing at all.

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"One of the cruder but effective methods is to exclude 5% of your audience from all marketing communication and compare their behavior with the remaining 95%," Rahul said. "This gives you a clean way to measure the program's impact without introducing bias."

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By comparing engagement, retention, and revenue between the hold-out group and those receiving campaigns, companies can quantify the real lift driven by lifecycle marketing. Without this kind of structured testing, it’s impossible to separate correlation from true impact.

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Iterative Improvements

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Optimization should be an ongoing process. Testing variables such as messaging tone, delivery timing, and content formats can reveal what resonates most with users. For example:

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• A/B testing email subject lines to find the most engaging phrasing.
• Experimenting with the timing of push notifications to maximize visibility.

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Additionally, benchmarks such as industry averages for open rates or click-through rates provide valuable context for evaluating performance. By iterating based on data insights, companies can continuously enhance their lifecycle strategies.

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Conclusion

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At its core, lifecycle marketing in entertainment is about guiding users through a journey—from first exposure to long-term loyalty. Each stage requires strategic engagement, personalized messaging, and the right channels to keep users active. But success isn’t just about sending more campaigns—it’s about knowing when and how to engage each user based on their behavior.

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Rahul highlighted this structured approach, emphasizing that the key to lifecycle marketing is understanding how users move through the funnel—from discovery to engagement to retention. Whether it’s a subscription model focused on reducing churn or an ad-supported platform optimizing for more watch time, every interaction should be designed to nudge users toward deeper engagement.

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For entertainment companies, the challenge isn’t just keeping users on the platform—it’s ensuring they keep coming back, consume more, and ultimately become loyal advocates. In a competitive industry, the right lifecycle strategy can be the deciding factor between lasting success or fading into the noise.