At OTT.X's Industry Strategic Review and Analysis Summit in December 2023, Parrot Analytics’ VP of Partnerships Insights Renee Engelhardt presented a report titled “What Content Works Best for Platforms & Business Models”. The report provides insightful data and analysis on content strategy for platforms, particularly focusing on the entertainment industry, with an emphasis on movies and series for SVOD (Subscription Video On Demand) and FAST (Free Ad-Supported Streaming TV) platforms.
Outlined below are some key insights from the report:
Content Strategy Diversification
There's no universal strategy that works for all platforms. The demand share between movies and series varies significantly across SVOD and FAST platforms, indicating the need for tailored content strategies to differentiate from competitors.
Importance of International Content
International content holds a significant portion of the catalog and demand across platforms, suggesting a considerable opportunity for platforms to expand their international content offerings to meet the audience demand.
Exclusive vs. Non-Exclusive Content
SVOD platforms tend to have a larger share of exclusive content, which is critical for subscriber acquisition and retention. On the other hand, FAST platforms primarily rely on non-exclusive content, highlighting a different approach to attracting viewers.
Content Age and Demand
FAST platforms heavily depend on older content, whereas SVOD platforms focus more on new releases. However, SVOD platforms generate more demand from slightly older content, indicating that a mix of new and slightly older content might be optimal.
Original Series Performance
Original series on FAST platforms, such as Freevee, can achieve significant demand peaks, exemplifying the potential success of investing in original content even within ad-supported models.
Business Models and the Value of Content
The business model of a platform (SVOD vs. FAST) influences its content strategy priorities. Overall though, for all business models, content strategy is driven by total value (revenue) generated which can be further quantified by how content drives value.
For instance, the total value (download report to see the numbers) generated by content like Grey's Anatomy on Netflix can be quantified by its ability to acquire new customers, engage existing ones and retain them, with a significant portion of its value derived from retention and engagement.
The presentation underscores the nuanced and complex nature of content strategy in the streaming space, highlighting the importance of understanding platform-specific demand, the value of exclusive and international content, and the strategic balance between acquiring new releases and leveraging older content.
To read more, download the full report here.
To know more about Parrot Analytics' full suite of audience demand and content valuation measurement products, visit the link here.
