Content And Distribution, Pulling Together Rival Strategies

Michael Hedges September 22, 2021 Follow on Twitter

Every business segment follows accepted and time-honored trajectories. Business school professors have written it all down, many times. MBA students memorize every word. These cycles, described in charts, graphs and tables, follow some sort of natural order. Businesses only tweak - or twerk - the inevitable path to obscurity. Today, certainly in the media sphere, nobody believes any of that.

The magical growth of streaming media is not slowing or even faltering. The business - usually measured by customer subscriptions - had been trending up, rather modestly for a decade or so. Big broadband internet made it accessible. Then the unknowable happened. Coronavirus lockdowns and related uncertainty packed a significant consumer segment back in their homes to, figuratively, ride out the storm watching films and series from the comfort of their couch, subscribing to multiple services. A range of specialist analysts as recently as a year ago warned the growth spurt unsustainable.

Streaming video platforms, typically aligned with established distributors and producers, ignored all of this. The growth spurt, they argued, is just getting started. That might defy economic gravity but also just might be true. Streaming video platforms number several dozen globally. Differentiation, in the accepted theory, is taking place; live sports being significant. Customers rush to big names and events.

Netflix distributed drama series The Crown, not entirely historical, was awarded 11 Emmys, including best drama series, best writing, best directing and more. On top of that, the film Queens Gambit won 11 Emmys. Overall, Netflix went to the 2021 Primetime Emmy podium 44 times, more than ever, more “than any other network or platform for the first time ever,” said Variety (September 19). The Crown, extended for a sixth season, is now a franchise of Game of Thrones scale, the HBO production that concluded in 2019.

Then this week Netflix announced the acquisition of the Roald Dahl Story Company, which manages rights to the acclaimed children’s author’s works. Financial details were not disclosed. “Roald Dahl’s books have been translated into 63 languages and sold more than 300 million copies worldwide, with characters like Matilda, The BFG, Fantastic Mr. Fox, Willy Wonka and The Twits delighting generations of children and adults,” said the Netflix statement, quoted by CNBC (September 22). “As we bring these timeless tales to more audiences in new formats, we’re committed to maintaining their unique spirit and their universal themes of surprise and kindness, while also sprinkling some fresh magic to the mix.” From the characters and storylines, Netflix will also create video games, live shows and, of course, merchandise. Whew!

Blockbusters, of course, come in all shapes, sizes and languages. Last week, Netflix co-founder/chief executive Reed Hastings said the company will invest €500 million for 80 German language series and films by 2023. The streaming video platform also opened its Berlin office for Germany, Austria and Switzerland, noted news agency dpa (September 16). The plan, he said, is to bolster relationships with German-speaking producers.

Scandinavian streaming service Viaplay, owned by NENT Group, is also chasing German-language markets, reported Variety (September 22). By 2023 Viaplay will also be available in the UK and Canada. Viaplay has a unique advantage in the ever-popular Nordic noir film and series niche and is also strong in regional sports rights. Viaplay is tiny, about 10 million subscribers, compared with Netflix’ 209 million.

Germany itself is a magnet for streaming video platforms seeking opportunity among strong traditional television services. The AGF Video Research Convergence Monitor 2021, a longitudinal study released this week (September 20), shows Germans devoting one-third of their online time accessing streaming video. Video downloading, not necessarily streaming, are the domain of traditional broadcasters; public broadcasters ARD and ZDF at the top (90% usage), followed by RTL Group’s TV Now (67%), then Joyn from Prosiebensat.1 and Discovery Deutschland (58%). Among streaming video on demand (SVoD) platforms, Netflix leads with 34% share, then Amazon Prime Video (28.6%), followed by Disney+ (7.9%) and Sky (4.6%).

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• Hot Topics - Streaming Media

• Hot Topics - Media in Germany