How SVoD Started To Steer the Film Business

Dimitar Serafimov | Mon Apr 16 2018 | Industry insights

OTT vs TV quality

SVoD streaming services have changed the way we consume entertainment forever, pushing the envelope regarding choice, diversity, freedom, and flexibility. And now it’s changing the face of the big screen.

As original content becomes the order of the day for the majority of big SVoD services - those such as Netflix and Amazon - the era of the 'original movie' is in full swing. 

Netflix licensed content generates 80% of U.S. viewing,  according to a data analysis from 7Park Data.

And the projections are quite bright. 

SVOD subs till 2025


In times when Netflix and the prestigious Cannes Film Festival revived their beef, it looks like a big disruption is happening in the industry.

Moving to the smaller screen?

In fact, long-form content, which Ooyala defines as longer than 20 minutes in length, makes up 65% of viewing on computers, a 35% rise from the year before, and 55% of viewing on smartphones, an increase on 29% from the previous year.

Bigger content is becoming a significant part of the small screen, steering the film business in new and previously uncharted directions. And different providers are taking different approaches.

While Amazon is happy to have its movie content offered for traditional theatrical releases before migrating to SVoD, Netflix sees much less of its original movies on the big screen.

Are we ready for instant releases on SVOD?

A rise of big screen content being put forward for instant SVoD release seems inevitable, at some point - but are we ready for it?

There is one interesting step to move movie releases and subscriptions. MoviePass is a subscription service that lets its users see one movie a day for $9.95 a month.  The service, which allows subscribers to see as many as 31 movies a month with its app and red debit card, currently counts more than 2 million subscribers, up from 20,000 last year.

From researching various consumer opinions on the subject, based on whether or not people would sign up for a Netflix premium account to watch movies currently in the theatres, the reactions were mixed.

But perhaps most notably, the point was raised that it would be unlikely Netflix would be able to obtain the same deal as movie theatres. The reason being that a traditional movie pass is limited to one user, where SVoD services like Netflix are open to multiple users. Moreover, movie theatres bank on frequent viewers driving concession sales.

Due to current expenses, red tape roadblocks and technological constraints, this style of SVoD offering seems unlikely in the short term. But, skepticism aside, there is a clear appetite for longer form big screen-type content on SVoD services, and the original movie is on the up. There is a great discussion on Reddit about this.

Whether cinematic releases being available instantly remains to be seen, as time continues, SVoD will continue to drive the evolution of the film industry - and for those with ample creativity, coupled with digital marketing smarts, have absolutely everything to gain.

Discover how SVOD can help you build a stable revenue stream:

Cleeng SRM Product