Why TV Content Owners Should Stream on Multiple Platforms (Guest Blog)
Harnessing the power of omnichannel distribution is key to succeeding in the OTT universe
Dan SchechterGuest Writer | August 24, 2016 @ 8:30 AM
Last week, we talked about some of the dos and don’ts of launching an over-the-top (OTT) TV network. There were four primary components we identified as playing large roles in the success of any venture — a strong affinity base (audience), replenishing a pipeline of content, a good promotional platform like an existing TV channel and excellent supporting technology. Of these, the most important is having some traditional marketing platform or partnerships (e.g., shows, customers, TV channels).
While people focus on new digital disruptors like Netflix and Amazon, don’t count out traditional players like HBO that own their channels. Existing content owners that currently have TV distribution should see OTT as a natural extension for their viewers.
To borrow a phrase from the retail sector, content owners should look to establish omnichannel distribution. What do we mean by this? Think about the traditional shopping path — you went to a store, you browsed, you purchased. But today, you research everything online, you compare across a variety of retailers without leaving your computer, and then you decide whether to purchase at the store, the online store or Amazon, etc. This omnichannel approach applies to content as well.
Omnichannel does not mean that content owners should have all their content available everywhere. Omnichannel simply means that content owners should maximize the different channels to fit their strategy. Consider two different entities, the NBA and HBO.
The two employ slightly different strategies — NBA content and games can be found on tier 1 and tier 2 cable packages (i.e., available to nearly everyone with a pay-TV subscription) with various pay options (for single game, single team and full season) and on various social media (YouTube, etc.). Clearly, the strategy is working for the league, given the popularity of the sport and the new TV deal.
On the other hand, HBO employs a different but equally successful strategy. HBO content is mostly available on HBO-controlled platforms — either a paid subscription with your pay TV, access to that subscription via HBO Go or a standalone HBO NOW subscription purchased directly from HBO. HBO is widely regarded as the gold standard of premium TV, first and foremost because of its great content, but also because of how easy the provider made it for consumers to access HBO.
As shown above, there are many ways to implement omnichannel distribution. The key is making the content easily available to consumers where and when they want it. For example, WWE’s OTT subscription channel, one of the most successful OTT examples, illustrates just how important this can be.
WWE’s OTT offering, WWE Network, launched in February 2014. A comparison of the prior-to-launch year (2013) vs. approximately two years following the launch reveals some compelling results.
Despite a decline in pay-per-view revenues, total video revenues jumped 68 percent, from approximately $245 million to approximately $412 million, attributable not only to the new OTT channel but to increased TV revenues, as well. Operating income more than doubled to nearly $63 million. And the equity of the company jumped 87 percent as market cap increased by $680 million.
As more TV entities consider OTT ventures, the questions of “digital readiness” will need to be answered. We will explore this issue in our post next week.
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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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What's leaving Aug. 15: The crime fighting trio formally known as "Charlie's Angels" will no longer be kicking a--- on Netflix.
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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.
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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."
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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.
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.