The video subscription space continues to get crowded as more platforms begin to offer content. Their goal is to pry your money out of your hands. It seems since Netflix and Amazon split their relationships with the likes of CBS, Disney, Paramount and other video content providers a scramble is occurring. The landscape of video content to offer subscribers has become ever so more exasperated. The treasure over the years has enticed the reorganization of the space and the competition is fierce. We are witnessing the ebb and flow of the market at work.
To add gasoline to the fire, more and more video subscription services continue to pop up. The newest is the content being developed by dating app Tinder (CNBC article September 17, 2019). The creation of original content to offer may not be as costly as Netflix’s injection into their original content, but may have a much higher profit margin. By cashing in on the same formula as the Reality Shows it may be a very smart platform and provides advertising support their core business.
The stakes for content are very competitive and very costly. Netflix lost two series from their service in “the Office” and “Friends”. Certainly the loss of those series was a factor in signing the series “Seinfeld” for $500 mil. ( Gizmodo article September 17, 2019). Netflix is likely using the loss of content to justify this acquisition and to justify the money being spent on original content. Netflix has the largest budget for original new programs.
Another entry onto the field, HBO Max, bagged the popular show Big Bang Theory (Entertainment Weekly article September 17, 2019). The series lasted twelve seasons. The show is scheduled to be available to viewers in the spring of 2020. Although the price has not been publicly disclosed, the landscape is unfolding similar to free agency frenzy days in professional sports. Proven content carries less risk and is worth more therefore. It provides the meat to begin to build around the foundation established by HBO’s original library of content.
The crowd in this limited space grows at a rapid pace while content to offer the customers gets squeezed smaller and smaller. Above it all, the consumer with a large number of options will ultimately decide who will survive the next few years as the platforms duke this out. This whole situation is getting interesting.
