ABSTRACT
Streaming companies have radically changed the distribution of screen content, appropriated segments of viewers from both TV and cinema exhibition, and globalised the sourcing and distribution of programmes. The Streaming business is examined through the four stages of media value creation: Business Development, Production, Distribution and Monetisation. Business development for streaming services both derives from, and drives, the streaming ownership model. Streamers fall into five categories: finance-driven (Netflix) tech-subsidised (Apple TV+), legacy rights owners (Disney+), legacy broadcasters (Peacock) and niche content players (BritBox). Production of original content for streamers can either be in-house or externally commissioned. Content can also be acquired as pre-existing programmes (‘acquisitions’) but these have lower exclusivity and therefore lower value in driving subscription numbers. Distribution is direct to the individual consumer, powered by recommendation engines, which use machine learning. Content is transmitted using a variety of AI optimisation technologies, mostly designed to improve bandwidth utilisation and therefore user experience. Monetisation of streaming is on a subscription model (SVOD), offering attractive economics to the streamer, provided that content is strong enough to encourage customer acquisition and retention; or an advertising model (AVOD); or (more recently) a hybrid of the two. Customer churn is a major brake on growth, and replacing customers is a marketing expense. A regular flow of great content is the key to reducing churn. There is an analysis of the AVOD service Pluto TV which is doing particularly well in Latin America. And the chapter ends with an analysis on AI technologies at Netflix.
