11.2 Content Acquisition and Original Programming for Streaming

Streaming platforms are battling for viewers' attention with strategic content acquisition. They're licensing popular shows, investing in original programming, and securing exclusive deals. These moves aim to attract and retain subscribers in a fiercely competitive market.

Original content is the secret sauce for streaming success. By creating unique shows and movies, platforms can build their brand, win awards, and keep viewers hooked. They're using viewer data to inform decisions and investing big bucks in high-profile projects.

Content Acquisition Strategies and Considerations

Content acquisition strategies for streaming

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• Licensing agreements secure rights to stream popular TV shows (Friends) and movies (Marvel Cinematic Universe) through exclusive and non-exclusive deals
• Content acquisition budgets allocate significant funds to secure high-value content while balancing cost with the potential to attract and retain subscribers
• Windowing strategies involve acquiring rights to stream content after initial release on other platforms (theatrical release, cable TV) and negotiating shorter windows for faster access to popular titles
• Global distribution rights require securing worldwide streaming rights for content and navigating regional licensing complexities and competition

Importance of original programming

• Creating a distinct brand identity and unique value proposition through original content (Netflix's Stranger Things, Amazon's The Marvelous Mrs. Maisel) offers exclusive programming not available on other platforms
• Attracting new subscribers with buzzworthy original series and movies while reducing churn by consistently releasing fresh, high-quality originals
• Pursuing prestige content to earn critical acclaim and awards recognition (Emmy Awards, Golden Globes) and leveraging this for marketing and subscriber growth
• Analyzing audience data and viewer preferences to inform original content development and tailor programming to specific audience segments

Original Programming Development and Impact

Development of streaming-exclusive content

• Identifying promising concepts and talent while providing creative freedom to attract top creators and differentiate content
• Investing heavily in high-profile, big-budget originals (The Crown, The Mandalorian) while allocating resources across a diverse slate of programming
• Offering competitive salaries and backend deals to secure top talent and exploring innovative compensation models such as overall deals and first-look agreements
• Evaluating viewership, subscriber growth, and engagement metrics to measure success and return on investment and assessing the long-term value of original content in driving platform growth

Impact of exclusive content deals

• Securing high-profile content from third-party studios and creators through exclusive licensing and distribution deals, limiting competitors' access to popular programming
• Collaborating with established studios (Disney), production companies (Shondaland), and talent to leverage partners' expertise and resources to create compelling originals
• Using exclusive content to stand out in a crowded market (HBO Max's Friends reunion) and attracting subscribers from rival platforms with must-see programming
• Evaluating the sustainability and scalability of exclusive content strategies while adapting to evolving consumer preferences and industry trends