Examining the five-year content strategies of the three leading subscription video-on-demand (SVOD) firms, research firm TDG predicts that by 2022 the amount invested by Netflix, Hulu and Amazon Prime Video in original series will triple to $10 billion annually.
The so-called ‘big-3’ SVOD players are set to shift an increasing percentage of their content budgets from licensing third-party films and show to originals – an extremely important strategy play, says TDG. The research found that among Netflix subscribers, 21% rank originals as absolutely critical in their decision to keep using the service, while 41% rank them as very important. Only 14% said originals were of no importance in this decision.
“The data is unequivocal,” noted Brad Schlachter, TDG senior advisor and report author, “though the relevance of original programming varies by service. The big-3 SVOD players own 60% of TV streaming time. They are looking to grow this share by creating compelling originals that serve both to attract new users and retain existing subscribers even as subscription rates increase.”