TV has and will continue to have a dramatic effect on consumer licensing. Accordingly, you need to be aware of the dramatic changes in the way consumers are discovering new TV content and how they may impact the effectiveness of your licensing initiatives.
The CEA Study
Historically, TV broadcasting and cable have functioned as both free flowing sources of entertainment properties for license and as primary vehicles for the continued exposure of licensed properties. But streaming now must be a factor in analysis of the way consumers are discovering and viewing TV content across different platforms. The changes are documented in a new joint research study commissioned by NATPE/Content First and the Consumer Electronics Association (CEA) conducted by E-Poll Market Research. Key findings of the study:
- Consumers seek out TV pro- gramming through many outlets, with 71% report- ing that they had watched streamed full-length TV programs in the past six months;
- For Millennials (ages 13 to 34), streaming is even more important, with 84% streaming in the past six months. Millennials highly value their Netflix subscriptions, with 51% characterizing a Netflix sub as “very valuable,” as compared to 42% for broadcast channels and 36% for cable;
- Top choices for streaming full-length TV shows include Netflix (40%), YouTube (26%), network sites (25%), sites that offer free programs (22%) and network or service provider apps (12%).
“Our study confirms that the paradigm for TV content discovery has changed dramatically with increased availability and use of TV content streaming options,” according to NATPE president and CEO Rod Perth.
Streaming’s Surge
Streaming is a business that’s still gathering momentum. U.S. consumer spending on subscription video-on-demand (VOD), which includes services such as Netflix, Hulu and Amazon Prime, surpassed $4 billion in 2014 on growth of 25% for the year, according to DEG: The Digital Entertainment Group.
Market leader Netflix reported 57.4 million subscribers in 50 countries at the end of 2014 and expects to offer its service around the globe within two years. Meanwhile, Netflix CEO Reed Hastings says the median number of hours viewed on the service continues to climb (though he didn’t say exactly what that number is.)
Dish Network, HBO and other pay TV providers are poised to launch standalone Internet TV services of their own in 2015, while Netflix and Amazon continue to add original programming. On tap for Netflix: s a theatrical sequel to action film “Crouching Tiger, Hidden Dragon” called “Crouching Tiger: Green Destiny,” produced by The Weinstein Company, as well as a Chelsea Handler talk show, kids series “The Adventures of Puss in Boots” (DreamWorks Animation) and new seasons of “House of Cards” (Media Rights Capital) and “Orange is the New Black.”
“Orange is the New Black” already has its own licensed merchandise store, courtesy of series producer Lionsgate, at www.shoporangeisthenewblack.com.