Select Page

TDG: Big-3 SVOD Original Content Spending to Triple by 2022

TDG: Big-3 SVOD Original Content Spending to Triple by 2022

Netflix SVOD

The Big-3 SVOD players – Netflix, Hulu, and Amazon Prime Video – will shift an increasing percentage of their content budgets from licensed content to originals. By 2022, the amount invested in originals will triple to $10 billion annually — this according to a new report published by The Diffusion Group.

“The Big-3 SVOD players own 60% of TV streaming time,” notes Brad Schlachter, TDG senior advisor and author of the new report. “And they are looking to maintain if not grow this share by creating compelling originals that serve both to attract new users and retain existing subscribers even as subscription rates increase.”

Just how important are originals to retaining subscribers? According to TDG’s original research, extremely important.

Among Netflix subscribers, 21% rank originals as “absolutely critical” in their decision to keep using Netflix, while 41% rank them as “very important.” “The data is unequivocal,” says Schlachter, “though it varies among the Big-3 SVOD providers.”

Much like HBO decades ago, the Big-3 now have a much better understanding of the limits of licensed content and the benefits of a viable slate of originals. “Of course, not all originals find an audience or generate a huge buzz,” says Schlachter. “But when they do, it can change the fortunes of a company. Just look at what The Handmaid’s Tale did for Hulu, or what House of Cards did for Netflix.”

As studios like Disney pull their most compelling content from Big-3 SVOD libraries, the necessity of a strong slate of originals becomes all the more obvious. But the Big-3 are not the only players eyeing a larger slice of the originals on-demand streaming market. In fact, companies as diverse as Facebook and Apple are investing in original TV-quality programming to distribute directly to consumers. Certainly Disney’s initiatives to launch its own D2C ‘channels’ will make it a potent competitor in this space.

 

SPONSORED: Find more exciting news on TV, movies, concerts and more at DAILY OVATION ENTERTAINMENT

 

Big-3 SVOD and the Original Content Arms Race – Analysis & Forecasts features TDG’s analysis of the forces driving both current and future content budgets among Netflix, Hulu, and Amazon Prime Video and breaks out licensed vs. original content thru 2022. It also examines the conditions that gave rise to the current arms race, as well as evaluates the growing slate of competitors entering (or soon to enter) this marketplace.

For more information about this report, please contact us at sales@tdgresearch.com, or call 469-287-8060.

About TDG Research

TDG provides actionable intelligence on the quantum shifts impacting consumer technology and media behavior. Since 2004, we’ve helped leading and emerging technology vendors, media companies, and service providers master the digital transformation and decipher how modern viewers access and engage video-whenever and wherever they may be. Learn more about how we can help improve your digital video strategies.

About The Author

Martin Teller loves rock n' roll, cyber security and Vegas trade shows. He wishes those interests alone would get him a seat at the 'cool kids' table. Alas, so far no. If you need him, he's likely waiting in line at the Southwest boarding gate at Burbank Airport as he writes this.

Gift Guides

GET THE SCOOP!

Sign up for emails to get the scoop on products and news

You have successfully subscribed! Don't forget to confirm your email from Daily Ovation.

Follow Us On Instagram

Weekly Newsletter

Sign up to our newsletter for the latest in entertainment, wine, lifestyle, and charity

You have successfully subscribed! Don't forget to confirm your email from Daily Ovation.