BOSTON—Consumers are looking for original content when it comes to their streaming channels, according to a new study released by Hub Entertainment Research. This has given Netflix an early lead in both drawing and retaining subscribers, but Disney+ and HBO Max are making headway.

Hub’s “Evolution of Video Branding” notes that streaming platforms are labeling more TV shows and movies as “original.” The report details a number of different ways that original content is influencing consumers.

The simple act of labeling a program “original” boosts its viewing interest. For those 16-34 years old, 70% of respondents said that the term “original” makes them more interested in watching a show or movie (25% “a lot more interested”). “Original” holds less sway for those 35 and older, but even so more than half (53%) are more interested in original content.

Netflix is far and away the current leader when it comes to original content, Hub found. Among all TV viewers, 29% believe that Netflix offers the best originals, with CBS (6%) and Amazon Prime Video (5%) the next closest. Younger viewers (16-34) love Netflix even more, with 38% seeing it as having the best original content; Disney+ is second at 7%.

Unsurprisingly then, Netflix ranks as the most indispensable service among younger viewers, per the study. When asked to pick the TV network or streaming services they would keep if they could only have five, 44% of the 16-34 age group said Netflix. Streamers rounded out three of the four other spots—Disney+ (26%), Hulu (23%) and Amazon Prime Video (18%)—while ESPN (22%) was the only traditional TV network that ranked in their top five.

Traditional TV had a better showing among those 35 and older, making up four out of the five must-have networks. CBS (32%) led the way, followed by NBC (29%), Netflix (29%), ABC (29%) and ESPN (18%).

As far as drawing new customers, strategies by Netflix, HBO Max and Disney+ to promote exclusive original content in 2021 has helped drive subscriptions. For Netflix, 88% of new subscribers (from December 2020 and January 2021) said that the streamer’s plan to release a new original movie each week was a reason for signing up; 59% said it was the main reason. With HBO Max, the plan to release all 2021 Warner Bros. movies on the service the same day as theaters influenced 77% of new subscribers (main reason for 48%). And 68% of new Disney+ subscribers said the streaming service being home for certain new films and franchise titles was part of their decision (only 21% said it was the main reason).

“So far, Netflix has not only withstood the threats posed by new entrants in the ever-intensifying streaming wars—it has thrived,” said Peter Fondulas, principal at Hub and co-author of the study. “But WarnerMedia’s and Disney’s moves to prioritize streaming distribution are already reaping rewards and have the potential to significantly disrupt the TV service pecking order. What remains to be seen is whether this streaming-first strategy will transform HBO Max and Disney+ into Netflix replacements, or whether they’ll remain as Netflix supplements.”

For more information, visit www.hubresearchllc.com.  

LONDON—We are in the middle of a content explosion not only in what is available to consumers, but how much industry players are spending to stay competitive. According to a recent study from Ampere Analysis, spending on TV, film and sports content has increased from $100 billion in 2008 to $165 billion in 2018, with nearly $50 billion in growth occurring in the last five years.

While most new players in the TV market are SVoD players, Ampere found that they are not where much of this growth is coming from. Rather its traditional TV companies that are increasing their spending on content to ensure they stay competitive against the likes of streamers. Broadcasters have increased their proportion of revenue they devote to content and rights expenditure from an average of 41% in 2013 to 50% by the end of 2019. Had broadcasters remained at their 2013 strategy of spending, the total spending would have increased $23 billion rather than $49 billion.

While streamers have also increased their spending budgets from 2013 ($2 billion) to 2018 ($19 billion), $111 billion of the $165 billion spent were from broadcast groups.

Most of streamers spending in the past was based on content acquisition—Netflix, Hulu and Amazon spent more than $13 billion on content acquisition in 2018—but original programming is becoming a bigger part of their strategies. Netflix, which spent $1.5 billion on original content in 2018, has ordered 300 brand new series.

Contributing to this need for original content is that studios are deciding to retain the rights to their original content rather than license it out to independent streaming services in the past.

“Where SVoD has led in content spend, others have followed and this has resulted in a positive feedback loop, stoking the fires of competition for content and driving up spending,” said Daniel Gadher, research manager at Ampere. “But the nature of competition is soon set to change as the big studio groups pursue their own services. This will create opportunities for local and global indie producers as Netflix and other streaming services seek to replace content retracted by existing content partners.”