Here’s your weekly recap on our latest episode of Friday Live! We’re always keeping the beat on the OTT (Over-the-Top) and VOD (Video On Demand) industries and sharing the latest and greatest tips to run a successful SVOD (Subscription Video On Demand) business.
Last Friday on Episode 66, Matt Given (CEO) and Ashley Podoll (Marketing Manager) covered Netflix’s current standing in the OTT space, their recent business trip to New York City, and unique ways SVOD businesses can utilize PR and media tactics to spread the word about their brand.
Let’s dive into all the goods!
Can Subscriber Growth Keep Netflix On Top?
On Friday Live, we can’t help but always talk about the leading streaming giant, Netflix, and follow their strategy to help them stay as the top dog of SVOD. While they’re often praised for their position in the space, they also cultivate some tension from spending a lot of money without bringing in much of a profit.
Based off a recent article from Forbes, Netflix’s most recent earnings report revealed that their stock dropped by 4% in the past year. While they’re incredibly popular, it’s important they prove their subscriber growth can alleviate their content spending if they want to stay afloat. Netflix would need more than 500 million subscribers, paying $20/month, to justify their $350 per share price. That means they would need half the global population to sign up for their service. They also burned through nearly $13 billion since 2011! At some point, it’s important they focus more on their finances and make sure they line up with their story. Subscriber growth may not be enough to justify their spending. We wonder if they’ll turn to AVOD (Ad-based VOD) to help level their cash burn, but let’s hope not!
Another mention to point out from Forbes is that many other entertainment giants, including Disney and NBCUniversal, are working on launching their own OTT offerings. Once they do, they’ll likely pull out their current network content on Netflix. Making Netflix depend on their original content game to keep subscribers around.
Where will all these pressures leave Netflix?
Share your thoughts with us and leave a comment below!
Intelivideo Visits The Big Apple
Given and Podoll recently flew to New York City to meet with existing clients and chat with some new prospects. They made a stop at Grand Central Station, where they chatted about the OTT market, SVOD businesses and what direction they think the industry is headed.
Here at Intelivideo, we work with many different types of clients, i.e. franchises, boutique studios, niche brands and social media influencers. Speaking to each type throughout the NYC trip resonated a discussion on how many of them face the same challenges when it comes to exposing their SVOD offering to consumers. Access is one of the key requirements they all focus on for their subscribers – ensuring their content is available anytime, anywhere. Given and Podoll emphasized on how it doesn’t matter whether you’re a social influencer or a large corporation. There is opportunity for any influential business or brand to strategically build a business with SVOD and spread it across multiple audiences.
The future of subscription video is boundless! Moving forward, we foresee companies including multiple elements in their subscription plans. For example, maybe they’ll offer video, podcasts and editorial content — all under one subscription. Content strategy is changing in the OTT space and there seems to be no end in slight for all the opportunities opening up.
PR Initiatives to Help Expose Your Service
Let’s wrap up this week’s recap with a discussion about PR and media. First, take a look at a recent PR opportunity that our client, TITLE Boxing Club, participated in to talk about their new offering TITLE Boxing Club On Demand.
TITLE Boxing was able to gain more exposure by doing a short boxing demonstration on their local news channel. Although they were only on the air for just a few short minutes, they were able to show the value of their offering and educate viewers on how they can get involved.
If your company has ever presented with one of these short media coverage opportunities, Podoll and Given advise that you keep your pitch clear, concise and compelling. Prepare ahead of time and make sure you include a verbal call to action when you wrap up. A video recording like the one TITLE Boxing Club participated in is a great piece of evergreen content that can be reused over and over again! You can post it to social media, on your website and send it out in an email. Repurpose it in as many ways as you can to get the most value from it and reach all your audiences through multiple channels.
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