How to Launch a Streaming TV Network (Guest Blog)

Over-the-top (OTT) TV platforms are springing up everywhere at a frenetic rate. The first three posts in our series on OTT TV covered the economics of OTT TV, the exploding ecosystem and the emerging power of niches.

In this post, we apply our observations and industry knowledge to offer dos and don’ts for launching OTT TV platforms.

We have identified four overarching criteria that contribute to an OTT TV platform’s chances of success:

Every OTT TV failure has missed at least one of these criteria. Although Redbox Instant had deep affinity bases (i.e., Redbox and Verizon customers), it did not have original content, and it experienced technical issues.

Also Read: As Streaming TV Blasts Off, Which Services Will Reach Orbit? (Guest Blog)

In contrast, Netflix meets all four criteria:

It had a huge installed base of customers ordering mail-delivered DVDs before it added its digital service
It added original content to its programming
It used its platform to promote and cross-sell content (Netflix started off as a film product, but TV now accounts for most viewing on the platform)
Its technology works

Although these four criteria are important, they do not guarantee success. Below is a list, based on failures and successes across the industry, of tips for anyone looking to launch an OTT TV network.

Also Read: Why the Streaming TV Boom Is About More Than Just Netflix (Guest Blog)

Pricing is a particularly critical component, given that existing services have set the bar for what consumers expect to pay for content. In addition to all the dos we have mentioned, we have identified the following don’ts:

Each launch is unique, so these dos and don’ts do not necessarily apply to all OTT TV platforms.

Also Read: Will Virtual Reality Ever Be Like the Holodeck on 'Star Trek'? (Guest Blog)

Tune in next week for a further discussion of how to make OTT TV work with an omnichannel approach and OTT TV networks.

This is Part 4 in a series on over-the-top (OTT) trends by Dan Schechter, Gil Moran and Francesco Di Ianni from L.E.K. Consulting’s Media & Entertainment consulting practice.

Netflix in August: What's Coming and What to Watch Before It's Gone

Even though favorites like "The Pursuit of Happyness" and "The Best Man" are taking a leave of absence, there are plenty of new options to Netflix and chill with during the height of summer.
What's coming Aug. 1:
Paul Newman's classic courtroom drama, "The Verdict," will be available Aug. 1
YouTube
What's coming Aug. 1:
"Holding the Man," is adapted from a memoir of the same name about two teenagers falling in love at an all boys high school.
What's coming Aug. 1:
"The Fast and the Furious" and "Tokyo Drift" offer a double dose of the late Paul Walker in the action-packed franchise.
What's coming Aug. 1:
In light of the upcoming elections, catch up on an issue dear to Al Gore's (and that of many Americans') heart. "An Inconvenient Truth" is a documentary about the former vice president's campaign to raise awareness about global warming.
What's coming Aug. 1:
The GOP presidential candidate released a book in the '80s that detailed his rise to success. Now, "Funny or Die Presents: Donald Trump's The Art of the Deal: The Movie," which is a parody of that infamous book.
Funny or Die
What's coming August 5:
"David Cross: Making America Great Again" is a Netflix Original about the comedian's stand up tour.
YouTube
What's coming Aug. 9:
"T-Rex" unfortunately isn't about a dinosaur, but it is a feel good documentary about the first U.S. woman to win an Olympic gold medal in boxing. It has the same premise as "Million Dollar Baby," but is actually true.

T-Rex
What's coming Aug. 10:
"St. Vincent" is a comedy about a babysitting gig blossoming into a genuine friendship, starring Bill Murray, Melissa McCarthy, Naomi Watts.
St. Vincent Film
What's coming Aug. 11:
"No Country for Old Men" has been on multiple "Best Films of the Decade" lists and now it'll be available for your streaming pleasure.
Miramax
What's coming August 12:

If this Netflix original series "The Get Down: Part 1" is anything like the streaming platform's other creations, it'll be worth watching. Plus, it's a musical drama television series. Kind of like "Glee," but not.

YouTube
What's coming Aug. 15:
"Louis CK: Live at the Comedy Store" is exactly about what it's titled: Louis CK's standup night at the Comedy store in Los Angeles.

Getty Images
What's leaving Aug. 1:
Steve Martin and Eddie Murphy star in one of their better comedies, "Bowfinger." Watch it while you still can.
What's leaving Aug. 1:
"The Best Man" is the beloved comedy drama prequel to the recently released "The Best Man Holiday." Simply a '90s classic.

YouTube
What's leaving Aug. 15:
The crime fighting trio formally known as "Charlie's Angels" will no longer be kicking a--- on Netflix.
YouTube
What's leaving Aug. 16:
"Inside Man" is another crime thriller about a fancy bank robbery in New York. Two reasons to watch before it's gone: Spike Lee and Denzel Washington.
Universal Movies
What's coming Aug. 25:
Viggo Mortensen's "The Road" is a post apocalyptic drama based off a novel of the same name by Cormac McCarthy. It was also nominated for numerous BAFTA awards.
What's leaving Aug. 27:
Bid a sad farewell to Will Smith's tear-jerking drama, "The Pursuit of Happyness."
YouTube
What's leaving Aug. 30:
Freddy Krueger will no longer be getting his revenge on Netflix. "A Nightmare on Elm Street 2: Freddy's Revenge" won't be sticking around for Halloween.

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From hit movies like ”No Country for Old Men“ and ”The Best Man“ to original series such as ”David Cross: Making America Great Again“ and ”The Get Down: Part 1,“ check out your streaming options for next month

Even though favorites like "The Pursuit of Happyness" and "The Best Man" are taking a leave of absence, there are plenty of new options to Netflix and chill with during the height of summer.

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BIO Dan Schechter

Dan Schechter is a Managing Director and Partner at L.E.K. Consulting, and he leads the firm's Global Media, Entertainment & Technology practice. He has broad experience within the media, entertainment and technology sector, including TV, film, Internet content and commerce, radio, magazines, theme parks, advertising and news. He also has experience working with retail, consumer products, travel and industrial clients. Dan was awarded his MBA from Stanford University and his BA, cum laude, from Harvard University.