OTT is set for domination - there's no doubt about it. It seems that original content programming is the right course for broadcasters and OTT providers, as new revenue opportunities are emerging online.
Built to meet the needs of today's fast-paced tech-savvy consumers, OTT has sparked the interest and earned the trust of consumers in all pockets of the globe; as a result, there have never been so many revenue opportunities for content providers.
The future lies in online services
In the realms of original programming, there are new revenue opportunities emerging all the time.
According to a study from FX Networks, of the 455 scripted shows across all platforms in 2016 (up 8% over the previous year), 93 of them were created specifically for online channels, compared to 145 for broadcast channels, 36 for pay TV and 181 for basic cable. That's a solid chunk of the market.
This chart shows the estimated number of scripted series over the between 2002 to 2014...
Original video sells
Now, key industry analysts have noted that the move towards original scripted programming reflects each platform’s effort to charge more for commercials while attracting critical attention.
According to research, one in five American streaming subscribers currently pay for three or more services, with the promise of high-quality original content most often stated as a fundamental reason for signing up. Also, according to Parks Associates, one-third of free OTT trials result in a paid subscription.
What's more, consumers are curating their own OTT bundles, starting with Netflix (bought by 95% of multiple streaming consumers) and Amazon Video (82%). Depending to preference, viewers then add à-la-carte platforms to their bundles, providers including Hulu, HBO Now and iTunes.
Right now, original programming seems to be worth its weight in gold when it comes to turning the heads of critics, cashing in on advertising, and enticing consumers with attractive content bundles.
OTT giants are serious about original programming
For starters, 35% of the content arriving on Netflix in May consists of original titles, the most of any month yet. To be precise, there are 29 new Netflix originals joining the platform, 35% of 84 titles going live in May.
While Netflix's overall library has been cut in half over the past four years, the amount of dynamic original programming has risen dramatically - and it's been working. Netflix now boasts around 100 million subscribers, more than any other OTT service.
The value of content rights is going up all the time, and as broadcasters like FOX are becoming more stringent with their rights, the platform has decided to morph into an HBO-like provider, releasing its own shows, movies, and content to a captivated audience.
Services like Amazon Prime and Hulu are also producing original after original to much acclaim and as other providers get in on the action, the competition is sure to become fierce.
We are in the era of the original and as more providers begin to compete by offering their own cutting-edge content, not only will even more revenue opportunities arise, but consumers will be spoilt for choice.
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