11.2 Content Acquisition and Original Programming for Streaming
2 min read•july 18, 2024
Streaming platforms are battling for viewers' attention with strategic content acquisition. They're popular shows, investing in original programming, and securing exclusive deals. These moves aim to attract and retain subscribers in a fiercely competitive market.
Original content is the secret sauce for streaming success. By creating unique shows and movies, platforms can build their brand, win awards, and keep viewers hooked. They're using viewer data to inform decisions and investing big bucks in high-profile projects.
Content Acquisition Strategies and Considerations
Content acquisition strategies for streaming
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- Licensing agreements secure rights to stream popular TV shows (Friends) and movies (Marvel Cinematic Universe) through exclusive and non-exclusive deals
- allocate significant funds to secure high-value content while balancing cost with the potential to attract and retain subscribers
- involve acquiring rights to stream content after initial release on other platforms (theatrical release, cable TV) and negotiating shorter windows for faster access to popular titles
- require securing worldwide streaming rights for content and navigating regional licensing complexities and competition
Importance of original programming
- Creating a distinct brand identity and unique value proposition through original content (Netflix's Stranger Things, Amazon's The Marvelous Mrs. Maisel) offers exclusive programming not available on other platforms
- Attracting new subscribers with buzzworthy original series and movies while reducing churn by consistently releasing fresh, high-quality originals
- Pursuing to earn critical acclaim and awards recognition (Emmy Awards, Golden Globes) and leveraging this for marketing and subscriber growth
- Analyzing audience data and viewer preferences to inform original content development and tailor programming to specific audience segments
Original Programming Development and Impact
Development of streaming-exclusive content
- Identifying promising concepts and talent while providing to attract top creators and differentiate content
- Investing heavily in high-profile, big-budget originals (The Crown, The Mandalorian) while allocating resources across a diverse slate of programming
- Offering competitive salaries and backend deals to secure top talent and exploring innovative compensation models such as and
- Evaluating viewership, subscriber growth, and to measure success and return on investment and assessing the long-term value of original content in driving platform growth
Impact of exclusive content deals
- Securing high-profile content from third-party studios and creators through exclusive licensing and distribution deals, limiting competitors' access to popular programming
- Collaborating with established studios (Disney), production companies (Shondaland), and talent to leverage partners' expertise and resources to create compelling originals
- Using exclusive content to stand out in a crowded market (HBO Max's Friends reunion) and attracting subscribers from rival platforms with must-see programming
- Evaluating the sustainability and scalability of exclusive content strategies while adapting to evolving consumer preferences and industry trends
Key Terms to Review (26)
Ad-supported model: The ad-supported model is a revenue-generating strategy where content is provided to consumers for free or at a low cost, funded primarily by advertisements. This approach allows platforms to attract a larger audience by removing the barrier of subscription fees while providing advertisers with the opportunity to reach viewers. The model has gained prominence with the rise of digital streaming services, enabling diverse content offerings and engagement metrics that benefit both creators and advertisers.
Binge-watching: Binge-watching is the practice of watching multiple episodes of a television series in one sitting, often facilitated by streaming services that allow for easy access to entire seasons. This behavior has transformed viewing habits, impacting how audiences consume content, influence production strategies, and shape the television landscape.
Binge-watching: Binge-watching refers to the practice of consuming multiple episodes of a television show in one sitting, often facilitated by streaming services that release entire seasons at once. This behavior has transformed how audiences engage with television content, impacting viewing habits and reshaping industry strategies.
Content acquisition budgets: Content acquisition budgets refer to the financial allocations made by streaming services to acquire existing content or create original programming. These budgets play a crucial role in the overall strategy of streaming platforms, as they determine the types and quantities of shows and movies that can be developed or purchased, directly influencing subscriber growth and retention.
Content library: A content library is a centralized repository of media assets, including films, television shows, documentaries, and original programming, that streaming services use to attract and retain subscribers. It serves as the backbone of a streaming platform's offerings, enabling users to access a diverse range of content at any time. The content library's composition can significantly influence viewer engagement and the overall success of a streaming service.
Creative freedom: Creative freedom refers to the ability of creators, such as writers, directors, and producers, to express their ideas and concepts without restrictions or limitations imposed by external entities. This concept is particularly significant in the realm of content acquisition and original programming for streaming services, as it allows for diverse storytelling and innovative approaches to content creation that resonate with audiences.
Diversity in casting: Diversity in casting refers to the practice of selecting actors from a variety of backgrounds, including race, ethnicity, gender, sexual orientation, and disability status, to create a more inclusive representation in film and television productions. This approach not only enriches storytelling by bringing multiple perspectives but also reflects the diverse audience that consumes media today. By embracing diversity in casting, productions can challenge stereotypes and promote equity within the entertainment industry.
Engagement Metrics: Engagement metrics are quantitative measures used to assess how actively and effectively an audience interacts with content across various media platforms. These metrics help determine viewer interest and involvement by analyzing behaviors such as likes, shares, comments, viewing time, and interactions. Understanding engagement metrics allows content creators and distributors to optimize their strategies for reaching audiences in an increasingly competitive landscape.
Engagement metrics: Engagement metrics are quantitative measures used to assess how audiences interact with content across various media platforms. These metrics provide insights into viewer behavior, preferences, and the effectiveness of content in retaining attention and generating interaction. By analyzing engagement metrics, media companies can optimize content strategy, enhance viewer experiences, and drive audience growth in an increasingly competitive digital landscape.
First-look agreements: First-look agreements are contracts that give a studio or streaming service the exclusive right to evaluate and potentially produce a project before it is offered to other producers or distributors. These agreements are significant because they can secure valuable content and provide a competitive edge in the crowded entertainment landscape, especially for platforms seeking original programming to attract subscribers.
Global distribution rights: Global distribution rights refer to the legal permissions granted to a producer or distributor to release and sell content across multiple international markets. This concept is essential for maximizing revenue and audience reach in the competitive landscape of streaming services, where content needs to be accessible worldwide to capture diverse viewer bases and adapt to varying regional demands.
Licensing: Licensing is the legal authorization granted by a rights holder, allowing another party to use their content, brand, or intellectual property in exchange for payment or royalties. This process is essential for content distribution and acquisition, particularly in the context of streaming services and international markets, as it allows these platforms to offer a wide variety of programming without having to create all content in-house.
Narrative complexity: Narrative complexity refers to the intricate and layered storytelling techniques used in television programming that engage audiences through non-linear plots, multi-threaded narratives, and character depth. This approach often challenges viewers to actively piece together storylines and themes, enhancing the overall viewing experience. The rise of this style has transformed how stories are told in television, particularly in original programming for streaming platforms.
Over-the-top (OTT) services: Over-the-top (OTT) services refer to content delivered directly to viewers via the internet, bypassing traditional cable or satellite television platforms. This method of distribution allows consumers to access a wide range of media content, including movies, TV shows, and original programming, on various devices like smartphones, tablets, and smart TVs. The rise of OTT services has dramatically changed how audiences consume media, promoting on-demand viewing and often providing subscription-based models that challenge traditional broadcasting methods.
Overall Deals: Overall deals are agreements made between content creators, such as writers, directors, or producers, and production companies or streaming services, which typically grant exclusive rights to develop multiple projects over a set period. These deals can significantly impact content acquisition strategies for streaming platforms as they seek to secure innovative and diverse programming that attracts and retains subscribers. Overall deals not only foster long-term relationships with creators but also ensure a steady stream of original content that is essential in today's competitive streaming landscape.
Pilot episode: A pilot episode is a standalone episode of a television series that serves as a prototype to showcase the show's concept, characters, and overall tone. It is typically produced before the rest of the series and is used to sell the show to networks or streaming platforms. The success of a pilot can significantly influence whether a series is picked up for full production.
Prestige content: Prestige content refers to high-quality programming that is designed to attract and retain viewers through its artistic value, storytelling, and production quality. This type of content often aims to enhance the brand identity of a streaming service and appeal to discerning audiences, thereby differentiating itself from lower-quality offerings. Prestige content can include critically acclaimed dramas, documentaries, or films that gain awards recognition and cultural significance.
Reed Hastings: Reed Hastings is the co-founder and CEO of Netflix, a leading streaming service that has transformed how audiences consume television and film content. Under his leadership, Netflix pioneered the subscription video-on-demand model, enabling viewers to access a vast library of content anytime, anywhere. His vision has influenced current trends in the entertainment industry, especially regarding content strategies for emerging platforms and the emphasis on original programming to attract and retain subscribers.
Rights management: Rights management refers to the process of identifying, acquiring, and enforcing the legal rights associated with creative works, such as television programs, films, and other media content. This involves ensuring that the content is used according to copyright laws and licensing agreements, protecting the interests of creators and rights holders while facilitating content acquisition and distribution for streaming platforms.
Royalty agreements: Royalty agreements are contracts that allow creators or rights holders to receive compensation based on the use of their intellectual property, such as film, music, or television content. These agreements outline how and when royalties are paid, providing a framework for financial arrangements between content producers and distributors. They play a crucial role in the content acquisition process and ensure that creators are rewarded for their work while also allowing streaming platforms to access valuable content.
Series order: A series order is a formal agreement that a network or streaming platform makes to produce a specific number of episodes of a television series. This agreement indicates the platform's commitment to the project and provides the necessary funding and resources for development and production. It also reflects the platform's confidence in the concept, creative team, and potential audience engagement for the show.
Shonda Rhimes: Shonda Rhimes is a prominent television producer, screenwriter, and director known for creating and producing popular television series such as 'Grey's Anatomy,' 'Scandal,' and 'How to Get Away with Murder.' Her work has made her a significant player in the television industry, influencing programming choices, audience engagement, and representation in storytelling.
Streaming algorithms: Streaming algorithms are a class of algorithms designed to process and analyze data streams in real-time, typically under strict memory and time constraints. They are crucial for efficiently handling large volumes of data that are continuously generated, such as user interactions and viewing patterns in streaming services. These algorithms help in making quick decisions regarding content acquisition and original programming by summarizing information and identifying trends from vast datasets without needing to store all the data permanently.
Subscription-based model: A subscription-based model is a business framework where customers pay a recurring fee to gain access to a product or service, often leading to a steady revenue stream for companies. This model is especially popular in the digital media space, as it allows streaming platforms to offer vast libraries of content for a fixed price, while fostering customer loyalty and predictable income. This approach also encourages content creators to invest in original programming, responding to changing viewer preferences and competitive pressures.
Viewer retention: Viewer retention refers to the ability of a television program or streaming platform to keep its audience engaged and watching over a specified period. High viewer retention indicates that viewers are not only tuning in but are also likely to continue watching content, which is crucial for advertisers, content creators, and platforms aiming for profitability and growth. It connects closely to audience targeting, digital measurement, and content strategies, as understanding viewer preferences helps optimize programming and maintain high engagement levels.
Windowing strategies: Windowing strategies refer to the methods used by content distributors to release and monetize film and television content across different platforms and formats over time. These strategies help optimize revenue by determining when and how content is made available through various channels, such as theaters, streaming services, cable, and home video. Effective windowing can also enhance audience engagement and maximize viewership by carefully timing releases to build anticipation or respond to market trends.