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How the Vod/Svod Has Changed the Entertainment Landscape

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Submitted By Juliepa
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HOW THE VOD/SVOD HAS CHANGED THE ENTERTAINMENT LANDSCAPE Hollywood has drastically changed over the past years due to evolution of digital media. The digital landscape had provided to movies and TV producers a new way to exhibit their work. Before, the main way to show a movie was through theatrical realizing. This time is over. Movie can be watch online through divers devices (mobile phone, computer, tablet…) via online sites/platforms. Video On Demand and Subscription Video On Demand have revolutionized the way to distribute and watch movies. VOD and SVOD respond to new demands and needs. The competition between movies platforms has created a heightening need to purchase quality content and to provide new opportunity in the movie distribution. Through an exploration of VOD’s origins, the majors market players, new opportunities and the future trends; the value and significance of this revolutionary platform to the entertainment industry will be highlighted.
With the access to fast Internet, the way consumers watch movies and TV has significantly changed. The United States has now over 76 millions households using a VOD platform. A look at the history of the Video On Demand and streaming highlights the massive change that has occurred over the years.

THE ORIGINS
The origins of VOD can undoubtedly be traced to cable providers looking to generate additional revenues from their content offerings. In 1992, John Hendricks, CEO of Discovery Communications, Inc. set forth to deliver a video on-demand service. His idea was as follows, “The idea of delivering Titanic- or back then Bram Stoker’s Dracula – not just on some fixed schedule but at whatever moment a subscriber flopped down on the couch was unheard of.” (Higgins, 2000). However, after nearly six years and $25 million dollars of investment the provider Your Choice finally went under after strong resistance from the multi service operators resisting the move towards digital. While this initial service correlates strongly too many of today’s business models, it provided an outline for many of the future industry providers.
As the Internet continued to grow in size and popularity the avenues for watching videos have drastically expanded. Video on-demand has become an extremely popular channel for major cable providers to drive additional revenue. Premium video on-demand services such as HBO, Starz and Showtime have continued to produce original content, providing viewers the ability to stream shows from devices and through multiple platforms. Streaming services such as Amazon and Netflix have revolutionized their business models from shopping/shipping and DVD hard disc services, respectively, to significant streaming providers with substantial digital libraries.
The growth of these on demand providers has answered and risen to the always-changing needs of customers. As competition drives innovation, there will unquestionably be continued development in the digital platforms as companies continue to search for revenue drivers to build upon their success and create new channels for distribution. While the past has certainly delivered exciting innovations in the way consumers digest media, the future may hold even more exciting revelations as competition the obtain market share heats up.
The growth and popularity of streaming has brought some of the world’s most profitable and recognized companies into the VOD/SVOD business segment. While their business models and strategies are often similar, each strives to provide content to users with a platform that fits their lifestyle and preferences. Examining the most active and successful companies helps distinguish the most successful forces in the industry that are shaping the acquisition and development of media content.

NETFLIX
Netflix, founded in 1997, based in California and SVOD giant, has helped and participated to revolutionize the On Demand Service business. At the first firm to pioneer mail-order rentals in the late 1990’s, Netflix has taken multiple steps to establish a massive streaming library. With over 36 000 plus titles available, the company has developed their streaming platform to allow the customer access from divers devices (TV, Tablet, computer, mobile phone) in same time. The company offers consumer access to their streaming library starting at $7,99 per month with the possibility to upgrade (example: Using more than one device). The company maintains distribution deals with the major studio like Disney, Lions Gate, Relativity Media but also with many independent company. Members have continued to sign up as the service now claims over 65 million subscribers worldwide, including 42 million domestic streaming subscribers, 23 million international. The company had revenues of approximately 5.5 billion in 2014. AMAZON PRIME
Perhaps one big competitor of Netflix is Amazon Prime, which costs $99 a year. Amazon Prime has evolved from an unlimited free shipping service on Amazon.com to an unlimited access to movies, television programs, and original content created by Amazon. The subscriber base is now over 40 million, which represents tremendous growth for the service, which was believed to only have 3-5 million members 3 years ago. The company has set plans to venture into original content production to compete with Netflix most recent productions.

HULU
Another major player in the steaming world is Hulu, the joint venture of NBC Universal, Fox Entertainment Group and ABC. Found in 2007, the company offers audiences streaming of TV shows and movies from the above-mentioned networks in addition to other networks and content producers. Hulu offers a basic service for $7.99, which generates revenue through an ad-based platform; and also a premium service called Hulu Plus for $12, which gives subscribers increased access to their library of content. Beginning 2015, Hulu had approximately 9 millions subscribers. Hulu has distribution agreements with company like AOL, MSN, Yahoo, and major cable companies, that all stream video. APPLE
Apple has become the largest company in the world by the extreme success and popularity of their devices. Regarding the TV world, Apple has created the Apple TV to allow customers to stream content. The company maintains partnerships with Hulu Plus and for $69 dollars per year for the Apple TV 3rd generation, allows customers to stream television and movies in addition to allowing users to buy specific titles for $1.99 and up. From the Wall Street Journal, Apple has sold 25 millions of Apple TV since the creation of the product.

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