Distributing & Securing Your Place
in the Streaming Universe
~~~~~~~~~~~~~
Written by
William Sondheim, Greenfield Media
Stephen J. Kerr, Bel Age Medias &
Sarah Nean Bruce, Bel Age Medias
************************************************************
– 7 MINUTE READ (1900 words) –
PREAMBLE:
Some of the things we hear from successful streaming media executives are that: you should never become complacent, you should never stop growing your audience, and you should never ever settle for just one medium, like SVOD or AVOD, when there are other ways to expand your reach. The term most often used by Streaming executives is ‘ubiquity.’
Netflix, Amazon, and Disney+ might be able to remain subscription-based only services, but most OTT streamers need to explore every possible path to market including: SVOD, AVOD, TVOD, Linear and Broadcast, if they wish to succeed and remain relevant.
William “Bill” Sondheim, a long-time media executive, who has built, run, and purchased streaming media companies brings his own unique insider insights on how to build a better streaming business.
Stephen J. Kerr, a 25-year veteran corporate and intellectual property appraiser, as well as an M&A intermediary, who has bought, sold, and valued streaming and home media companies, contributes his investment banking perspective to this topic.
This third article focuses mainly on the distribution of owned and licensed content.
Philippe Guelton, President of Crackle Plus and head of VOD Networks at Chicken Soup for the Soul Entertainment: “I love the fact that the streaming media industry is changing all the time. I learn every day of a new platform, or a new device, or a new competitor. And it's fascinating. It's really exciting. It's rare to have an area of media that is growing so fast. At one point in media’s evolution, it was social media… at one point it was mobile, at one point it was digital. And now it's really the age of OTT streaming.
“It's exciting to see how it's growing so fast on the audience side, but also on the revenue side. Whether it's consumer funded, or advertising funded… it's time to be in this space for sure.”
SONDHEIM: “The streaming landscape is going through a rapid bifurcation of services driven by the enormous multi-billion-dollar investments the studios and a few leading technology companies are making in the content streaming business. This has accentuated the divide between the major Hollywood studios and the dozens of well-known media brands that are also trying to transition their legacy distribution businesses into digital streaming strategies.
“It would be easy to predict the global conglomerates will prevail due to their almost limitless access to capital and highly desirable content, but I believe these monoliths also allow potent narrowly defined niches to form, creating opportunities if you manage the growth of your smaller service in a disciplined manner. We often hear the expression that ‘Size Does Matter,’ well, I believe that operating a modest sized streaming business offers great potential for profitable growth if you can manage your content costs while refreshing your programming to ensure continued engagement.”
KERR: “Courting new linear online platforms like Philo, STIRR and PLUTO TV can take months or even years, and managing advertising on your site may require hiring some in-house ad sales people, but in the long-run it will probably be worth it.
“You always need to be looking years down the road while continually tweaking your content, technology, and customer interface to meet consumer demands. But you also need to make sure that your channel is available anywhere, and everywhere, that consumers want to access it.
“Even if the majority of your revenue comes from only one platform or viewership base, adding other platforms and media can be accretive to your long-term growth and can position your channel(s) for future changes in consumer viewing preferences.”
Tony Havelka, President of Ameba TV: “There really isn't a well laid path that everybody takes, that they can march down, that’s a guaranteed path to success.
“Everybody's trailblazing. They see a little path and sometimes get into a dead end… move back and have to go do something else. …everybody right now is trying to get into AVOD, but show me a profitable AVOD. They are still trying to figure that out.”
→ You have to be nimble & flexible to survive & thrive the streaming wars.
GUELTON (Crackle): “Our biggest current challenge is prioritizing and delivering all these new products as quickly as we can. And yet, we've got to take great care of the users, etc.
“This year we're about to relaunch both Crackle Plus and Popcornflix on brand new platforms. We believe that it's also very important to upgrade our Apps and offer a better user experience, better integration, better content discovery, and faster load speeds.”
KERR: “We always cringe a bit inside when we hear Streaming execs say that their service is going to remain only subscription-based or only advertising-based… And that they have no intention of changing. It reminds us of the Home Video days when some DVD distributors relied only on Walmart or only on Blockbuster to reach consumers.
“When the crunch came, they were the first ones to fold.
“Having said that, your content and your market niche can play a major role in where you want to be seen. Not all streaming media services lend themselves to linear or advertising driven platforms. The tighter your niche, the more focused you have to be to service your target audience. If your audience is made up mostly of extreme sports enthusiasts or baking enthusiasts, for example, there may be no motivation to expand your market reach further than a half dozen platforms and mediums.
“‘Know thy audience’ should be the first rule of any streaming executive. Making your channel easy to find, easy to access, and easy to use, can be far more rewarding than making it available everywhere.”
Bonnie Comley, CEO / Founder, BroadwayHD: “Like any SVOD service, content has been our biggest success, and new content is the biggest obstacle to growth.
“BroadwayHD is a niche streamer and the tighter we focus on our niche of content – ‘Broadway shows’ - the more successful we become.”
SONDHEIM: “We are seeing niche content companies, catering to passionate, albeit limited audiences, continue to grow their user bases by being ‘platform agnostic.’
“The overall consumer base has become very fragmented using dozens of different services and formats to consume their various content needs.
“The modest niche companies need to embrace this wide availability model with equal enthusiasm to secure distribution deals across AVOD and SVOD and even TVOD outlets.”
Philip Hopkins, President of The Film Detective / Fandor (Divisions of Cinedigm): “…it's a matter of getting the platform distributors to believe that your programing is going to work for their customers. But on top of all of that, you've got to really help them get an audience educated that they are going to get engagement with an enthusiastic group of admirers of the content.
“With Pluto TV we did a joint venture with them five years ago which helped them in the background with social media, and made sure that people knew - that if you love classic movies, you can now watch them 24/7 on Pluto TV.”
→ To keep growing you need to keep innovating.
SONDHEIM: “As we see the consumer options explode with various channels, making your OTT channel available as a subscription will appeal to your most committed audience, but a more casual fan may opt to watch some ads and avoid another monthly subscription to their growing list of bills.
“Making both of these consumer models feel like a priority will prove an important way to mitigate risk and broaden income streams.”
GUELTON (Crackle): “We are already now on close to 30 different platforms. And I'm talking about Crackle only. We are on all the traditional legacy platforms like ROKU, Fire TV, the VODs, apps on Samsung and Visio and LG. We obviously have our Android and iOS apps, mobile and tablets, and we have distribution on the setup box through Comcast. The list goes on and on.
“We just launched our first linear channels in December. Crackle had been just on-demand, but we thought it was very important to create linear experiences to allow viewers to sample our VOD content. So, we started with PLEX TV, which has been a very important partner for us. We actually were their first VOD partner. We launched our Crackle and Popcornflix linear channels on PLEX TV.
“We've also just recently launched on XUMO. We're going to be on probably half a dozen new FAST (Free, Ad-supported Streaming TV) platforms in the coming month.”
HAVELKA (AmebaTV): “It took us two years to get on XBOX, but it turned out really well. We were lucky. It just it checked all our boxes to start off, like a small, focused App Store and huge market. And then that took off. Xbox is one of our biggest platforms still to this day.
“And then the same thing happened with Amazon. When Amazon called us about getting a channel, we were like, okay, let's figure it out. We had to retool our entire organization in order to comply with Amazon's content requirements. How it has to be formatted, how you submit, how you do takedowns, how you deliver everything. We're constantly adding new titles to our channel, so we had to automate that. It was worth it, Amazon has become our biggest source of subscribers.”
→ Jumping from streaming to linear can be rewarding, but there’s a risk!
KERR: “Do not limit your service to just the USA or North America. There is (literally) a whole world of consumers out there who are just waiting to see what you’ve got.”
COMLEY (BroadwayHD): “International expansion is a large opportunity for BroadwayHD. As we acquire content, we have made a focus to try to grab all of the territories that are available to us with the goal of establishing large enough libraries internationally to justify the monthly cost to subscribers.
“We recently put a focus on UK expansion as the obvious first market outside of the US.”
HOPKINS (TheFilmDetective / Fandor - Cinedigm): “I’m looking for the ability to scale and move into a lot of new territories that we haven't gotten into. International is wide open for us. We've been talking to a couple of large foreign platforms that were able to test the waters.
“What I'm looking forward to is not just the growth that we can afford now, but that we now have a larger organization which will allow us to scale.”
→ You need to have worldwide rights to enjoy worldwide growth.
If ‘Content Is King’, Distribution is certainly Queen. Because without her… the King is nothing.
Sondheim and Kerr have been around long enough to see entertainment and informative content proliferate from theaters and television, to home video, disks, cable, and now to streaming. All the same growing pains that you are experiencing now, were there twenty and thirty years ago in the other mediums.
What these Streaming media executives continue to tell us is that you need to think BIG! And, be everywhere and anywhere that consumers want you to be. We are simply ushers for our audiences.
Disney+ just exceeded 100 million subscribers in less than two years by providing consumers with beautiful content, well presented, on a platform that is easy to navigate.
When we asked Phillip Hopkins of The Film Detective / Fandor what his future plans were now that he is a division of Cinedigm, he replied “World domination.” We agree! You have to think like that… whether your niche content is Broadway musicals, cartoons, movie classics, or documentaries.
World domination should be your goal.
Special Thanks to our Industry Experts quoted in this article:
head of VOD Networks at Chicken Soup for the Soul Entertainment
[https://www.linkedin.com/in/philippeguelton/]
Crackle.com • PopcornFlix.com
& President of TekGear Inc.
[https://www.linkedin.com/in/tony-havelka-79b060b/]
AmebaTV.com • TekGear.com
[https://www.linkedin.com/in/bonnie-comley-7705a515/]
BroadwayHD.com
[https://www.linkedin.com/in/philip-elliott-hopkins-934a7b11]
TheFilmDetective.com • TheFilmDetective.TV • Fandor.com
Looking for more capital, content, or other resources to help you make the right moves for your streaming media business?
Bill Sondheim and Stephen Kerr can assist.
- If you need a veteran media guru working alongside you to help fortify your streaming media business, or to initiate & complete licensing deals - please contact Bill.
[LinkedIn: https://www.linkedin.com/in/bsondheim/] - If you need a business or intellectual property valuation, IP acquisition / divestiture, or you want to discuss the sale of a company - please reach out to Stephen.
[LinkedIn: http://www.linkedin.com/in/stephenjkerr/]
This organization leverages the expertise of several industry leaders and provides content and cast evaluation, distribution strategies, marketing and social plans and Key Art development.
https://greenfield-media.com
Alongside his partner – Sarah Nean Bruce – Bel Age Medias Revives Underperforming IP, Rebuilds Brands, Creates Financial Projections, Syndicates New & Legacy Streaming Content, and Helps Emerging Media Companies Prosper.
https://belagemedias.com
1 – INSIDE THE FIGHT FOR EXCLUSIVE CONTENT AS STREAMERS ACQUIRE STUDIO LIBRARIES
— TheWrap – by DIANE HAITHMAN – 02/16/2021
https://www.thewrap.com/fight-for-exclusive-content-as-streamers-acquire-studio-libraries/
2 – NICHE STREAMERS NEED TO INNOVATE, PIVOT, CONSOLIDATE TO COMPETE WITH ‘MUST HAVE’ SERVICES
— Media Play News – By BILL SONDHEIM – 01/11/2021
https://www.mediaplaynews.com/niche-streamers-need-to-innovate-pivot-consolidate-to-compete-with-must-have-services/
3 – SPENDING ON STREAMING SERVICES AND SOFTWARE COULD REACH $112 BILLION IN 2021
— The Hollywood Reporter – By CAROLYN GIARDINA - 01/11/2021
https://www.hollywoodreporter.com/behind-screen/spending-on-streaming-services-and-software-could-reach-112-billion-in-2021
4 – INTERNATIONAL STREAMERS INVESTING MILLIONS TO TAKE ON NETFLIX OVERSEAS
— The Hollywood Reporter – by SCOTT ROXBOROUGH - 04/02/2019
https://www.hollywoodreporter.com/news/international-streamers-investing-millions-take-netflix-overseas-1198653
5 – CAPITALIZING ON OVER-THE-TOP CONTENT DEMAND
— BMC Online – By STEPHEN J. KERR - 09/11/2018
http://www.bizmark.net/blogs/capitalizing-on-over-the-top-content-demand
BAM News • BMC Articles • Greenfield Articles
Image Credits:
FEATURED-GRAPHIC_HOW TO BUILD A BETTER STREAMING MEDIA COMPANY (Part 3)_FINAL.jpg – via Bel Age Medias
INFOGRAPHIC_HOW TO BUILD A BETTER STREAMING MEDIA COMPANY (Part 3)_FINAL.jpg – via Bel Age Medias
INFOGRAPHIC-TITLE_HOW TO BUILD A BETTER STREAMING MEDIA COMPANY (Part 3)_FINAL_LI.jpg – via Bel Age Medias
HEADSHOT-LinkedIn_BillSondheim.jpeg – via Greenfield Media
HEADSHOT-LinkedIn_StephenJKerr.jpeg – via Bel Age Medias
Categories: #content #distribution #streaming #entertainment #OTT #streamers #worldwide #SVOD #AVOD #TVOD #FAST #linear #broadcast
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HOW TO BUILD A BETTER
STREAMING MEDIA COMPANY (Part 3)
Distributing & Securing Your Place
in the Streaming Universe
http://www.bizmark.net/blogs/infographic-how-to-build-a-better-streaming-media-company-part-3
If you’d like to READ Part ONE Article
or SEE Infographic
CLICK LINKS
HOW TO BUILD A BETTER
STREAMING MEDIA COMPANY (Part 1)
Advice for Companies Doing Business
in the Streaming Media Industry
↓ ARTICLE LINK ↓
http://www.bizmark.net/blogs/how-to-build-a-better-streaming-media-company-part-1
↓ INFOGRAPHIC LINK ↓
http://www.bizmark.net/blogs/infographic-how-to-build-a-better-streaming-media-company-part-1
~&~
If you’d like to READ Part TWO Article
or SEE Infographic
CLICK LINKS
HOW TO BUILD A BETTER
STREAMING MEDIA COMPANY (Part 2)
Licensing And / Or Buying
Streaming Media Content
↓ INFOGRAPHIC LINK ↓
http://www.bizmark.net/blogs/infographic-how-to-build-a-better-streaming-media-company-part-2