19 Jul The Race for Original Content in The New Streaming Landscape
With more and more households cutting the cord, a new way to consume movies and television has been rising at an incredible rate. It’s called streaming. Now, streaming movies and televisions is nowhere near a new concept. However, the streaming landscape is transforming. Streaming service subscriptions have experienced an astronomical boom in the last ten years. An increase in the number of subscriptions means an increase in the number of streaming services. Along with an increase in the number of streaming services comes an increase in competition. And that competition is for your eyes on their content.
Netflix has pioneered and led television/film streaming, with other services like Hulu and Amazon rounding out the streaming behemoths, for a number of years. However, those days could be numbered. According to an article in PC Magazine, “newly melded media conglomerates and powerful Silicon Valley players, including Apple, are gearing up to battle…”; meaning change is brewing. Major players include Comcast and AT&T; however, Netflix’s major threat is widely believed to be Disney’s new streaming platform. With giants such as Marvel and Fox, plus properties like Frozen, under its umbrella, Disney is expected to give, not just Netflix, but all other established and upcoming streaming services a run for their money.
With the multitude of streaming services on the horizon, how does a consumer choose the one(s) they want to subscribe to? It’s all about the content. Most consumers subscribe to the “trinity” of streaming services (Netflix, Hulu, Amazon) because their libraries include fan favorites, such as Friends, Seinfeld¸ or Cheers. Others choose to subscribe because of these streaming services’ original content, such as Stranger Things, The Handmaid’s Tale, and The Marvelous Mrs. Maisel. More and more companies like NBC and ABC are pulling licenses from certain streaming platforms to only stream on their own, forcing those platforms to pivot to original content. When it comes to original content, services are not looking to just fill their libraries. They are looking to differentiate themselves from the pack. In other words, if a streaming service wants to keep a consumer subscribed, they must generate worthy, original content. And it is not cheap.
Companies, new and “old” to the streaming landscape, are dishing out serious budgets to remain competitive in the original content race. In 2018, Netflix invested $12 billion in original content and is expected to spend an estimated $15 billion in 2019. Amazon spent about $6 billion in 2018 and is estimated to spend another $6 billion in 2019. Apple is expected to spend about $2 billion in original content. You can see why Netflix still has the most subscribers. All of this money spent, just to keep a viewer.
If you are looking to capture your own audience with original content, consider Berning Marketing & Production. Our company has over 40 years of experience creating captivating, commercial content for numerous brands and numerous mediums, including digital streaming. Contact us today to learn how our team can get your content in front of the right people.