Changing Viewing Habits the Key to Winning the Streaming Video War http://t.co/IDLK7vDg
My first thought when reading that headline was “well, d’oh”, because it seemed like an oversimplification of the scale of the problem. Sure, if everyone switched over to streaming video for their media consumption, then we’d be in a different position. Trouble is, people generally are watching more television than ever, via more traditional channels than internet delivered streaming content.
Ultimately typical viewers like the type of content they find on traditional television. The secret to success in the new world is more of that type of content. Netflix and Google’s YouTube are all investing in new content because the traditional suppliers (i.e. studios) want ever higher license fees for their existing content.
Instead of tossing a bunch of cash into accomplished shows, Slash Gear says Netflix is heading into theoriginal programming market and YouTube is launching over 100 exclusive original channels, as reported by the Associated Press. However, getting those shows to the level of “The Big Bang Theory,” “True Blood,” or even “Dexter” will be the challenge facing streaming companies. For streaming companies, the money makes more sense if they own the rights to the shows and even create them in the first place.
The issue is pretty clear. Penetrating an existing market, like television, requires a great product, and while Netflix, YouTube, and even Apple have the cash to create a quality television show, that is not exactly the business the companies are known for. Challenging the content landscape is going to be an uphill battle, but it could be the move that changes television forever.
As I hypothesized back in December 2009, if the studios don’t make nice with new players, they have the means to pay producers – those that make this high value content now – directly, bypassing the studio and the networks.
This just in from Variety: Hulu orders first scripted original skein (that’s Variety-speak for “yarn” a.k.a series).
Last week, Hulu disclosed 2011 results that showed growth on both fronts. Hulu revenues increased 60% year over year to $420 million while its sub base reached 1.5 million.
In a blog post announcing his company’s results, CEO Jason Kilar pledged to spend $500 million on content in 2012.
Increasingly it looks like the future for Netflix, Hulu and YouTube is original programming. Do you really think Apple will have another path?
2 replies on “Changing Viewing Habits the Key to Winning the Streaming Video War.”
Why not reuse the 30% cut model and open a movie store. One where everyone can self-publish a movie or a “tv” series. Why not? There is so much hidden talent out there that doesn’t get thru the studios and networks… Don’t you think that could be a plan?
Terry Curren and I agree that this will be the eventual end game for Apple – a publish to the store button under Share in FCP X. I’d love to see it happen, but…. Here’s the rub. Apple already heavily moderate all submissions to the App store. Because of the concerns of only “appropriate” material going into their store, I suspect any media store would also be heavily moderated and that could impose a huge barrier between creator and audience.
It would also be a channel where only “safe, nice” media will be sold. Not all stimulating or challenging is “nice” and there could be some free speech implications. For those reasons I think this type of submission may be a way off. Or not.