Industry overview
The Media Landscape for independently produced content has become volatile due to shifting distribution outlets
Four major trends in entertainment distribution have created opportunities in commercially-oriented independent content
A brief review of how each major entertainment revenue segment is trending will provide insight into areas that are oversaturated and areas that are underserved
SVOD is dominated by Tech-driven companies and Major Studio players that can invest and lose billions in TV episodic content as they capture long-term market share and consumer brand equity, unfortunately, most will not spend aggressively on Independently financed films except for occasional filler needs. This trend of limited placement for smaller films will increase as Major Studios reorient their internal production departments and release strategies to fully focus on their SVOD financial future.
TVOD remains focused on feature films and has become the main place to find Hollywood’s recent Stronger Independent films and is still an important window to deliver meaningful revenue. TVOD On-line outlets include Vudu/Fandango and I-tunes and Goggle Play as well as on cable systems and Digital Outlets. This will remain an important way to monetize Independent films for the foreseeable future and requires smart distribution placement combined with strong social media and analytics to drive consumer transactions.
AVOD had long been ignored due to historically lower quality content but as “must-have” SVOD options multiply, the combined cost is driving huge growth in AVOD consumer traffic. This trend has exploded over the last 12-18 months due in part to the arrival of major corporate ownership of AVOD assets. The clearest examples are Viacom’s ownership of Pluto TV and Fox’s purchase of Tubi. The next major trend will be TV platforms like Samsung and LG further extending the consumer reach. Independent Films will benefit immensely from this strong growth in consumer viewership when focused on the appropriate audience demographics.
DVD has long been written off by experts on the coasts, but it remains a viable platform for lower-income middle American demographics and will continue to drive real revenue for the next 5+ years. Companies that produce content that has broad mainstream middle American appeal must ensure proper physical distribution to maximize this meaningful revenue stream. We still see significant revenue from action and faith films with a recognizable cast that delivers to this demographic.
SVOD players currently dominate the consumer’s daily consumption attention driven by super-high production value episodic TV coming from a broad group of mega-corporations that include; Netflix, Amazon Prime, Disney, Warner’s HBO Max, and Paramount+. Many of these Mega Players have cut short their theatrical windows and placed new hit films on their streaming service which has reduced the level of title competition in the TVOD and EST window.
TVOD & EST outlets have gained new value for well-produced Independent Films and TV content and many consumers still find their favorite one-night movies in this window. TVOD services have developed numerous ways to reach consumers through high traffic download sites, cable operators, satellite providers, and other free access outlets from companies like I-Tunes, Google Play, Vudu/Fandango, Comcast, Spectrum, Dish, and Direct TV
TVOD & EST relies on driving actual measurable transactions that can evaluate the cost of promotion and advertising with actual revenue generated to determine profitable activity. This is a crucial revenue stream and skill set for Independent film’s future profitability.
AVOD has seen a massive traffic shift in the last year and I believe we will see it double again in the next two years. While we have already seen several major media companies recognize this trend and begin to stake out AVOD strategies, I believe it will remain an area dominated by higher quality Independent content and must be a huge focus for future Independent content exploitation. Viacom has purchased Pluto TV and Fox purchased Tubi. Roku has recently been rumored for sale. Comcast remains committed to Peacock and using an AVOD service to exploit their Universal and NBC assets in the future.
Major online advertising services like Google and Facebook will likely ramp up their advertising integration to better leverage their massive advertising-driven traffic
All these rapid growth services will need content and will focus on one-off film content which is easier to acquire and finance