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

Last week, we discussed and how this new ecosystem enables content owners to keep more of the consumer dollar than is possible in the traditional ecosystem. Today’s post explains the possible fates that await OTT TV platforms.

The buzz surrounding OTT TV platforms has certainly been loudest in the last two to three years, but the format has been around for substantially longer — since MLB.tv launched in 2002. The figure below shows some of the higher-profile launches.

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

As you can see, there are two primary groups that launch OTT services: (1) content owners/licensors (e.g., NBA, HBO) and (2) platforms (e.g., Netflix, Hulu). Interestingly, although content owners/licensors were a little slower to the OTT TV game, they are responsible for the majority of recent launches. Netflix, Hulu, Crackle, Apple, etc., are already well established, and they’re bolstered by massive budgets for content. So new, large platforms will find it increasingly difficult to make much headway in this space.

The successes of some of these businesses is enough to make anybody’s head spin. Consider the following:

Netflix has a market cap around $50 billion
Hulu boasts 12 million subscribers
WWE signed up one million paying subscribers in its first year
Among all Amazon Video watchers, approximately 90 million pay for access to Amazon Prime Video

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

But as the figure below shows, not every story has a happy ending. Some fail, some try to rebrand and reboot, and some suffer an indeterminate future.

Despite the failures, reboots and uncertain futures, more OTT TV platforms will enter the market. However, evaluating the right way to participate will be critical for aspiring content owners/licensors/platforms.

Also Read: How Virtual Reality Is Working to Fix Its Puking Problem (Guest Blog)

In our next posts, we will discuss these competitive dynamics and some of the dos and don’ts of new launches.

This is Part 2 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.