How payments can boost entertainment platform growth and user loyalty

Valued at 99.98B$ in 2024 (opens in a new tab), the global online content monetization market is projected to grow from 111.30B$ in 2025 to 261.23B$ in 2032, with a CAGR of 12.96%. With thousands of platforms to choose from, customer loyalty becomes a challenge: End users seek the highest possible content quality and personalization, as well as ease of use and accessibility through a smooth platform UX. Data and transaction transparency, privacy and security are also a must, directly affecting the criteria needed from industry payment methods, and making them an instrumental part of content platform’s growth.

Promoting platform growth and removing friction with payment methods

Entertainment fans of all demographics and GEOs have become used to finding exactly what they are looking for on the spot, from anywhere, and to buy it safely with a single tap. Users don’t want to trade convenience for security. They want both, experiencing as little payment friction as possible. With thousands of entertainment options, platform jumping has become the norm, with platform owners feeling more pressure than ever to foster trust and provide value: There is a real need to deliver high quality hyper-personalized content, and fast, secure and seamless payment experiences.

Innovations and automations such as One-Click payments, Tokenization, Biometric payments integrations have the power to entice new potential subscribers to pull the trigger, promoting real-time decision making. In that way, by avoiding platform jumping and removing first-time payment friction, payment providers can be an active part of entertainment platforms’ growth, and vice versa.

Another important aspect of promoting subscriber loyalty and user retention is to avoid payment issues by automating payment reconciliation. With the right reconciliation automations, overcharging, undercharging and failed payments errors can be entirely avoided or solved on the spot. This alone can pose a solid argument for end users to be faithful to one specific platform.

Preferred payment methods according to content type

The subscription market worldwide is worth 275$B and is forecasted to reach 600$B by 2026 (opens in a new tab). It is a profitable business model and the customer lifetime value tends to be high since subscribers will stick to a service if they find value in it. There are as many subscription payment methods available, from Tiered Subscriptions (Basic and Premium), Ad Supported Models, to Flexible Subscriptions (Pay-Per-View, Micropayments, and Annual vs Monthly) and Bundling Strategies. Video platforms for instance use pay-per-view (PPV) and ads-insertion models, with broadcasters monetizing video content in dozens of ways with OTT models, like AVOD, SVOD, or TVOD. This means that this model heavily relies on the usage of seamless and flexible payments.

Content type also informs the payment model. For example, Gaming content offers a wide array of payment strategies: Single real-time payments, downloadable content, freemium, and in-game payments. Let’s put as an example: During a Streaming, a gamer is promoting a specific product. A buy link appears for the end user with a readily available product, creating the need for on-the-spot payments.

There are multiple preferred payment methods that entertainment platforms use to cater to all audiences, content type, GEO and subscription preferences: Apple Pay, Google Pay, Debit and Credit Card, Stripe, Phone Payments and Alternative Payment Methods, or APM, Blockchain, Payment Wallets, and Crypto payments are the most used methods of payment for entertainment platforms.

Build trust and avoid chargebacks through transparency and optimized User experience

As stated, to build trust with subscribers is offering high quality content regularly updated and customized to their needs. And to use a trusted, industry recognized payment method. Which is where PCi Compliance, transparency and data safety come into play.

Because of the complexity of the entertainment industry, online entertainment providers face some PCI compliance and card schemes alignment (Visa, MasterCard and American Express) challenges. For starters, because of the large number of daily transactions of different kinds (in-app purchases, PPV, subscriptions, micro-payments, etc.), supported by different payment methods, managing PCI compliance can become quite resource-intensive. This also creates challenges with the handling of end user sensitive payment information, Tokenization issues and more.

Payment fraud and data theft is also a significant issue, with the expansion of cashless and cardless payments. Especially with the evolution of AI and Deepfakes scams that continue to run wild and endanger end users’ digital wallets and accounts. This is the number 1 cause of chargebacks, which, aside from being costly, can seriously damage platform reputation.

Transaction transparency can also pose a significant issue. Unclear subscription models, unrequested automatic renewals, lack of refund policies, inaccurate transaction history and other privacy concerns all can make subscribers switch platforms in no time. It is then extremely important for entertainment platforms to be strict about regulatory compliance and end user data transparency and security, as well as providing clear pricing information, simplified subscription terms, and transparent payment policies and billing statements.

By working with Financial tools that use automated payment processes and notifications, platforms can offer clarity, control and quick conflict resolution and provide a trustworthy payment experience.

Using Secure Payment Systems or Blockchain technology which come with Biometric Authentication payment methods (MFA, Facial and voice recognition, etc) is key. It is also important to invest in robust AI learning third-party anti-fraud monitoring solutions.

Conclusion

As the content monetization market continues to expand, striking the perfect balance of quality, great user experience, transparency and security is the one way for online platforms to guarantee end user loyalty and avoid chargebacks. This creates the perfect opportunity for platform owners and payment providers to collaborate to produce high quality online experiences, promoting business growth for both parties.

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Thibaud Hodobay is the Managing Director of adnovation, a digital entertainment creation, licensing, promotion and monetization business focusing on various verticals within the Ed-Tech, Wellbeing, Lifestyle and Entertainment sectors.