Telstra Stats Show Kannuu Boosts Revenue


Kannuu Pty Ltd today released usage data from a major telecommunications and media content provider that shows the impact an enhanced discovery experience can have on increasing revenues.

Today, Video-on-Demand (VoD) and paid content purchases account for a significant share of profit for video and cable providers globally. However, experience shows that users become frustrated or lose interest and quit searching if it’s too difficult to find what they’re looking for. Providers that invest in improving the search, discovery and recommendation functions can expect to see a clear ROI from the resulting increase in paid content purchases.

Kannuu was launched over a year ago on Telstra’s over-the-top (OTT) platform. Telstra Corporation Limited is Australia’s largest telecommunications and media company. Analyzing consumption behavior has led to some significant findings.

“We’ve experienced a noticeable improvement in customer interaction and satisfaction with the Kannuu technology on our OTT platform,” said Eric Kearley, Director of IPTV and PayTV at Telstra. “Prior to the Kannuu discovery experience launch, an average of 10 percent of consumers used the search function. After incorporating Kannuu’s technology, over 30 percent of consumers began using the search function, with peak times seeing over 70 percent usage.”

Further analysis shows that nearly 20 percent of those engaged customers purchased media content and 17 percent of all title purchases overall resulted from Kannuu’s discovery platform. The data also showed that for some of the “top 30” movies, over 25 percent of the purchases resulted from discoveries on the Kannuu platform.

Kannuu’s discovery experience changes the paradigm for discovering personalized, relevant content. Enhancing recommendations and the user interface (UI) leads consumers to interact and engage more in the discovery process. Further usage analysis on Kannuu’s interactive UI on Telstra’s service showed consumers engaging up to eight times more in search and discovery relative to traditional interfaces. The increased user engagement produced a 3.8 percent increase in VOD purchases.

Content and VOD providers currently see low customer engagement with their search and discovery functionality, meaning users are only browsing through content instead of seeking out what they actually want to watch based on a particular subject matter, title, genre or actor. This leads to poor purchase conversion rates for browsed content.

Content providers globally have an enormous opportunity to increase revenue from purchased media content.

To compare efficiency and ease of use, a head-to-head comparison against four leading search platforms was conducted to determine the average time needed to search for a VOD movie by title. With Kannuu, users found what they were looking for in a fraction of the time.

Average time needed to select a VOD movie:

  •     YouTube (letter grid) – 45 seconds
  •     Samsung (on-screen keyboard) – 41 seconds
  •     LG (on-screen keyboard) – 29 seconds
  •     Netflix (6×6 letter grid) – 27.5 seconds
  •     Kannuu (navigation) – 11 seconds

“As consumer demand for movies, TV shows and media content continues to grow exponentially, the discovery experience of finding relevant, personalized content of interest is paramount,” said Kannuu CEO Todd Viegut. “Content providers globally have an enormous opportunity to increase revenue from purchased media content as data shows a direct correlation between the time it takes consumers to find what they’re looking for and their purchase rates.”