User activity to enhance customer lifetime value modeling in contractual streaming industry

This article presents a model for Customer Lifetime Value (CLV) tailored to the subscription-based streaming industry, incorporating both contractual dynamics and user activity. Unlike traditional CLV models that overlook contracts, this semi-Markov model captures the time users remain in specific s...

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Main Authors: Eudes Adiba, Maurice Comlan, Eugéne C. Ezin, Nesta Kouzounhoue
Format: Article
Language:English
Published: KeAi Communications Co., Ltd. 2025-11-01
Series:Journal of Economy and Technology
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2949948824000623
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author Eudes Adiba
Maurice Comlan
Eugéne C. Ezin
Nesta Kouzounhoue
author_facet Eudes Adiba
Maurice Comlan
Eugéne C. Ezin
Nesta Kouzounhoue
author_sort Eudes Adiba
collection DOAJ
description This article presents a model for Customer Lifetime Value (CLV) tailored to the subscription-based streaming industry, incorporating both contractual dynamics and user activity. Unlike traditional CLV models that overlook contracts, this semi-Markov model captures the time users remain in specific subscription plans and the transitions between these subscription plans. Using empirical data from the MTN TV platform for a step-by-step implementation, the study identifies key factors influencing subscription cancellations, such as expiration dates and viewing behavior. The results show that longer subscriptions yield higher CLV, with more predictable churn cycles. These findings can guide marketing strategies and resource management to maximize CLV in the streaming sector.
format Article
id doaj-art-0102ce3c13cd4f0d8bc41e3f2807ab4a
institution DOAJ
issn 2949-9488
language English
publishDate 2025-11-01
publisher KeAi Communications Co., Ltd.
record_format Article
series Journal of Economy and Technology
spelling doaj-art-0102ce3c13cd4f0d8bc41e3f2807ab4a2025-08-20T02:39:32ZengKeAi Communications Co., Ltd.Journal of Economy and Technology2949-94882025-11-013698110.1016/j.ject.2024.12.001User activity to enhance customer lifetime value modeling in contractual streaming industryEudes Adiba0Maurice Comlan1Eugéne C. Ezin2Nesta Kouzounhoue3Namur Digital Institute, University of Namur, Namur, BelgiumENEAM, University of Abomey Calavi, Cotonou, Benin; Corresponding author.IMSP, IFRI, University of Abomey-Calavi, Abomey-Calavi, BeninDepartment of Economics, University of Laval, Laval, CanadaThis article presents a model for Customer Lifetime Value (CLV) tailored to the subscription-based streaming industry, incorporating both contractual dynamics and user activity. Unlike traditional CLV models that overlook contracts, this semi-Markov model captures the time users remain in specific subscription plans and the transitions between these subscription plans. Using empirical data from the MTN TV platform for a step-by-step implementation, the study identifies key factors influencing subscription cancellations, such as expiration dates and viewing behavior. The results show that longer subscriptions yield higher CLV, with more predictable churn cycles. These findings can guide marketing strategies and resource management to maximize CLV in the streaming sector.http://www.sciencedirect.com/science/article/pii/S2949948824000623Customer lifetime valueContractual settingStreaming
spellingShingle Eudes Adiba
Maurice Comlan
Eugéne C. Ezin
Nesta Kouzounhoue
User activity to enhance customer lifetime value modeling in contractual streaming industry
Journal of Economy and Technology
Customer lifetime value
Contractual setting
Streaming
title User activity to enhance customer lifetime value modeling in contractual streaming industry
title_full User activity to enhance customer lifetime value modeling in contractual streaming industry
title_fullStr User activity to enhance customer lifetime value modeling in contractual streaming industry
title_full_unstemmed User activity to enhance customer lifetime value modeling in contractual streaming industry
title_short User activity to enhance customer lifetime value modeling in contractual streaming industry
title_sort user activity to enhance customer lifetime value modeling in contractual streaming industry
topic Customer lifetime value
Contractual setting
Streaming
url http://www.sciencedirect.com/science/article/pii/S2949948824000623
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AT mauricecomlan useractivitytoenhancecustomerlifetimevaluemodelingincontractualstreamingindustry
AT eugenecezin useractivitytoenhancecustomerlifetimevaluemodelingincontractualstreamingindustry
AT nestakouzounhoue useractivitytoenhancecustomerlifetimevaluemodelingincontractualstreamingindustry