CAPITALIZING ON OVER-THE-TOP CONTENT DEMAND

A Short Essay on How &
​Why it Can Pay to Go Over The Top 

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Written by
​Stephen J. Kerr & Sarah Nean Bruce
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Via floatleftTV-applying-principles-qa-automation

​PREAMBLE:
We wrote this article because we wanted to help our indie TV & film producer / distributor business associates better understand current OTT opportunities.  We recently interviewed several of our OTT-channel business associates to get the inside scoop on how to capitalize on over-the-top content.

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​➜ Demand for new content is exploding everywhere around us. 

Most content creators are only aware of the biggest OTT platforms like Netflix, Amazon and Hulu, but have you heard of 420TV, PureFlix, Fuse, Outside TV, The Film Detective, Viceland, The Blaze, Shout! Factory TV, the Dove Channel, UP, Ride TV, WE TV, World Fishing Network, RFD-TV, Z Living or AFRO?  These are just a few of the hundreds of new channels available through Sling TV or as downloads to your ROKU, Apple TV, Fire TV, or game platforms – such as Xbox, PlayStation or Wii. 
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“Most producers only concentrate on the top 1% of the OTT market.  The lower 99% of OTT channels are often an afterthought.” ~ Bill Sondheim, Cinedigm

SIDEBAR: Over The top (OTT) is a term used to refer to content providers that distribute streaming media as a standalone product directly to consumers over the Internet, bypassing telecommunications, multichannel television, and broadcast television platforms that traditionally act as a controller or distributor of such content.[i] 

➜ The OTT universe is a voracious consumer of content.

Most OTT channels were created with legacy content – but, to retain and attract new viewers the channel operators are spending billions to create new, targeted content for their audiences.  Some of this content is being mined from YouTube, Vimeo and other video sharing sites, but the best, most-watched, original shows and movies are being created specifically for their viewers. 

​Throw out your old playbooks and embrace a new paradigm – movies, as we have known them, are becoming a thing of the past.  Except for the major blockbuster films from studios like Disney, Warner Bros, Paramount and Universal, most of the full-length motion pictures being delivered by indie producers are financially D.O.A. (dead-on-arrival). 

​“Many producers are geared towards long-form content, but we’re looking for more short-form, or what I call “snackable” length (6 - 12 minutes) content.” ~ Joe Goman, OwnZones

​“You can even make a show out of cheap or free content.  For example, we aired a programming stunt called “Online Crash Course In Better Driving” which features a comedian who gives not-so-accurate instruction in driving and uses old drivers ed films as examples.  It’s hilarious.” ~ Gene Pao, Shout! Factory  

➜ OTT channels look for content that speaks to their specific target audience.

​Before you approach the owners of any OTT channel, get to know their audience and figure out how to either adapt your existing programming to their market, or create unique programs that speak directly to their constituency.  

SIDEBAR: The term OTT is most synonymous with subscription-based video on demand services that offer access to film and television content (including existing series acquired from other producers, as well as original content produced specifically for the service), including but not limited to Amazon Video, Hulu, and Netflix, as well as a wave of "skinny" television services that offer access to live streams of linear specialty channels similar to a traditional satellite or wireline television provider, but streamed over the public Internet, rather than a closed, private network with proprietary equipment such as set-top boxes. [i]

➜ OTT channels are screaming for new content from experienced creative professionals and filmmakers like you.

Yes, the budgets may be smaller and the programming very specific to their target market, but the demand is there and your skills as a storyteller - and producer - have never been so needed.  Most filmmakers spend an inordinate amount of time looking for money, when they could be turning out important and influential content for some of the 500+ OTT channels that desperately need their storytelling skills and content.  

“Find niche, archival content and make it entertaining and informative” ~ Philip Hopkins, The Film Detective

SIDEBAR: Over The Top services are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players (including video game consoles), or televisions with integrated smart TV platforms. [i]

➜ When you repurpose your existing or classic content on OTT channels, you can introduce new audiences to movies and programs that they would never had seen otherwise.

There are lots of OTT channels that are reviving classic movie, television and other content for their viewers and – often – with a twist.  Most OTT channels are not trying to compete with or replicate cable television.  Their audiences want to see something different, and specific.  A good example of this is Shout! Factory TV’s Mystery Science Theater 3000, where cheesy sci-fi movies from the 50s, 60s & 70s get hilariously lampooned by comedic commentators.

“We focus on classic, branded television and movies. We prefer to acquire all rights to programming, but we will license for two years or longer.  If we license third-party titles, they don’t need to be exclusive.” ~ Gene Pao, Shout! Factory 

​“Most OTT channels like Dove Channel and others create very little original programming.  Original content is seen as high-risk.  Repurposed content is great for us.” ~ Bill Sondheim, Cinedigm

➜ Yes, you must have the rights.

As with any content you plan to exploit, it is essential you have secured ALL the rights to your works before you approach an OTT channel (or any broadcaster, or distributor).  That means actors, music, imagery, etcetera, all need clearances, contracts, and releases (Chain-of-Title).

➜ You may be – unknowingly – sitting on content that OTT channels eagerly want, and desperately need. 

Even if you have licensed your past movies to cable broadcasters you may be able to get another bite out of the apple by licensing your film library to various OTT channels.  These companies thrive on branded movies and television shows that have not been seen for many years.  

“We are constantly on the lookout for existing libraries of quality programming.  Our audience is global, so content owners need to think about both the domestic and international markets for their content.” ~ Bill Sondheim, Cinedigm 

“Shout! Factory likes to do deals more like we did for the New Horizon (Roger and Julie Corman) film library.  It’s the same work for us to license a complete library as it is for a single title.  One-off titles would have to be pretty special for us to pursue them.” ~ Gene Pao, Shout! Factory

➜ It helps if you have sponsors in tow when you approach an OTT platform. 

Working with OTT broadcasters can be a lot like working with Public Broadcasting.  They provide the audience and the advertising support, but funding the cost of production is often your responsibility.

“Sponsorship is important.  If you can secure a sponsor tied to your content, your chance of getting picked up goes way up.” ~ Bill Sondheim, Cinedigm 

“It’s best if you come to us with a strategy. OwnZones can help with funding, but content creators need to come to us with either sponsors or other funding resources already in place.” ~ Joe Goman, OwnZones 

➜ It helps for you to be entrepreneurial if you want to work with OTT channels.

The OTT channel owners are spending millions of dollars to provide you with a platform for your shows, and a way to prosper financially from your talent.  What they are not is an ATM.  You need to approach them with your own end-to-end business model.  OTT channels tell us that experienced YouTube producers are sometimes easier to work with than movie and television producers, because YouTubers understand the need to find their own financial resources, and know how to create short, compelling content.  OTT channels may help with securing advertising and sometimes sponsors, but they (usually) will not provide up-front financing for your shows.

Many of the channels are owned by media companies that can utilize your programs on multiple platforms and syndicate them to other media, as well.  Case in point: The Film Detective uses interviews and behind-the-scenes footage of classic movies to create interstitials for their channel, as well as to sell to other broadcasters around the world.

You should also know that many of these new OTT channels have linear, ad supported, channels on traditional broadcast carriers like Direct TV, SlingTV, and PlutoTV, as well.

➜ Yes, you should be creative. 

For almost every niche program that you can imagine, there is an OTT channel serving that audience. Acquisition people for these channels are looking for unique long-form and short-form content – with a “hook” – something that will grab the attention of their viewers.  

➜ Yes, you can make money. 

“Top end for original content form most OTT channels (not Netflix / Amazon / Hulu) is about $100,000 an episode, with a pre-order - usually - of no more than 10 episodes.” ~ Bill Sondheim, Cinedigm  

​Of course, $1,000,000 for a full 10-episode series, pales in comparison to series on HBO, Starz or Netflix – which can run upwards of $1+ million per episode.  But you can do a lot with a million dollars if you are frugal, nimble and create niche content.

A lot of OTT channels are ad supported. The revenue split between the content creators and the channel broadcasters varies depending on the quality and originality of the content.  Highly prized, original content obviously would pay more than off-the-shelf, non-branded content. 

➜ When you deliver programming to OTT channels, they are adaptable. But ask them first about their deliverables.

You will probably find that the OTT market is very flexible as to the format that you need to use to deliver your content to them. 

“We can accept legacy content in almost any format.  HD, 1080p and 4K is preferred, but if it is compelling SD content, NTSC / PAL or BETA is also acceptable. Just don’t expect us to spend a fortune restoring old and faded programs.  OwnZones can help with localization and technology issues, as well.” ~ Joe Goman, OwnZones 

“We are film preservationists, so we will often invest the money to bring classic movies back to their original condition in HD, or even upgrade to 4K.” ~ Philip Hopkins, The Film Detective 

➜ Producers, like you, with an idea for original content on a niche OTT platform call us, and we call the channel to see if we (or you) can pitch them their idea.  It is, as simple as, that.

Finding the money to produce a limited series, or ongoing series, for Ride TV or Outside, Z Living or any of the other hundreds of channels, is often a matter of finding some sponsors to pay for it.  The owners and managers of these brand-new channels have ambitions to dominate their niche, and most know that you can’t dominate with just the old, legacy content.  Even classic movie and television channels are supplementing their films and shows with interviews, access to memorabilia, and original, behind-the-scenes content

Most of these OTT channels are owned by smaller media companies that are highly approachable.  All you need is a great idea that speaks to their target audience, and a way to fund the production.  Most of the time, you will find that they are “all ears.”

“About 50% of the time, Shout! Factory reaches out to content creators and library owners, the other 50% of the time the content is submitted for consideration. It is best if it comes to us from an agent or other pre-existing relationship.” ~ Gene Pao, Shout! Factory

“The best way to approach us is through our website submissions page.  We look at everything that is presented to us and will respond to the submitter.” ~ Joe Goman, OwnZones

With hundreds of new channels coming online every year, it can be daunting to know who to contact, and what kind of programming they are looking for. We know, and work with, quite a few of these new OTT channels. They are typically smaller organizations, and for us, the owners and acquisition people are easy to approach.

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Let us help you.

Our firm, Bel Âge Médias (B.Â.M.}, is a company specializing in providing Business Development, Branding Guidance, Mergers & Acquisitions (M&A) expertise, Exit Strategies, and Investment Banking services. Additionally, under out ongoing Streaming / OTT / 4K / Ultra HD initiative, we continue pursuing strategic alignments with high-end, entertainment technology providers, and explore low-cost alternatives for theatrical, televised, streamed, and online distribution of 4K and 2K films & television programs globally.
 
Bel Âge Médias • Santa Monica, California
Call Us - or Visit Us Online - or Email Us:
+1 310 666-6474 
https://belagemedias.com/  
Stephen(@)BelAgeMedias.com • Sarah(@)BelAgeMedias.com

LinkedIn-Stephen J. Kerr – https://www.linkedin.com/in/stephenjkerr
LinkedIn Sarah Nean Bruce – https://www.linkedin.com/in/sarahneanbruce

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 Endnotes / References: 
1 – How Streaming Giants Are Spending Money for TV Push By Natalie Jarvey | THE HOLLYWOOD REPORTER – August 23, 2017  

2 – The OTT View-niverse: A Map of the New Video Ecosystem By Andrew Wallenstein | VARIETY April 29, 2015

2 – YOU’RE ALREADY IN THE TELEVISION BUSINESS by Stephen J. Kerr and Sarah Nean Bruce | BMC ONLINE – December 2017
 
3 – Wikipedia: Over-the-top media services – [i] Source [i]
 
Image Credits:
IMAGE-remote-1140x500https-floatleftTV-applying-principles-qa-automation – FloatLeft.TV
​
PHOTO_Sarah&Stephen.png – by BelÂgeMédias 

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​Categories: #content #distribution #entertainment #OTT

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PUBLISHED AT:

LinkedIn-Stephen J. Kerr – https://www.linkedin.com/today/author/stephenjkerr 

LINKED AT:
LinkedIn Sarah Nean Bruce – https://www.linkedin.com/today/author/sarahneanbruce

​BAM News –
​https://belagemedias.com/news/