Recent report reveals that SVoD service providers will triple its investments in producing original content
Three major subscription video-on-demand (SVoD) service providers — Netflix, Hulu and Amazon Prime Video — will shift an increasing percentage of their content budgets from licensing third-party content to producing originals. And by 2022, the amount invested in originals will triple to US$10 billion annually, The Diffusion Group pointed out in its Big-3 SVoD and the Original Content Arms Race — Analysis and Forecasts report.
Moreover, the three SVoD players account for over 60% of TV streaming time in US broadband households, according to the 2018 report, and will be looking to expand its market share by producing compelling original content in order to attract new viewers and retain existing subscribers.
Brad Schlachter, senior advisor for The Diffusion Group, told APB: “It is critical for SVoD services to produce their own original content to differentiate themselves from the growing number of competitors entering the space.
“In addition, as the studios pull back their licensed content from the SVoD services, especially Netflix, it has become clear that the appeal of and loyalty around its originals will be its number one weapon in the looming battle for market share.”
The proliferation of original content also has implications for the wider linear broadcast industry, Schlachter highlighted. “Consumers now have more programming choices than ever before, and the growth in digital programming will lead to the continued decline in traditional TV viewership.
“Going forward, we expect this trend to continue, and online services will be the key driver for future growth.”
Similarly in Asia, HOOQ, an SVoD service provider in South-east Asia, has expanded its content offerings into creating original content. In an attempt to spur Asian filmmakers’ creative minds, HOOQ has launched HOOQ Filmmakers Guild, an initiative designed to seek out film talents in Asia and bring their stories to screens.
As part of the HOOQ Filmmakers Guild, HOOQ selected and premiered six original screenplays as pilot episodes to go live on its platform. The six pilots are Bhak, Suay, Haunt Me, How To Be A Good Girl, Aliansi, and Heaven & Hell.
Peter Bithos, CEO of HOOQ, explained to APB: “Through initiatives like the HOOQ Filmmakers Guild, we want to focus on Asian stories told in the Asian context while supporting the pool of filmmaking talent present in Asia. This allows us to create content that is locally relevant, bringing a whole new format to Asian content.”