Today, video on demand platforms is drawing TV viewers from across the globe. What is the reason for its huge popularity? Access to thousands of popular movies, TV shows, and originals in one single platform can satisfy any taste. Convenience and affordable packages also make them a primary choice over the traditional TV network. Building a video streaming website like Netflix is an awesome approach to draw in traffic to your site and to benefit from video content. Netflix is one of the largest providers of on-demand movies and TV shows on the Internet. As of 2020 first quarter, Netflix has over 182 million paid subscribers and the company is still leading the charge over its competitors.
Why is a Streaming License Important?
To make your subscribers happy with a wide range of popular shows and movies, you might need to acquire content from TV show creators and movie makers. If you are acquiring movies and shows for your streaming website from elsewhere, you need to get permission or movie licenses from the original content creators to stream it on your platform. The type of license you need to get might vary depending on the type of content. Licensing for online streaming content is the process of getting permission from the owner of a movie or TV show to stream its content through an on-demand platform like Netflix.
If you are planning to build a Netflix like website, a licensing agreement is essential under which the terms of a legal contract between you and the content owners will be defined. It starts with copyright, which is a legal right of ownership that allows content creators of a published work to control how it is managed and whether it can be copied.
Unauthorized use of copyright content will result in copyright infringement that can lead to legal challenges. Usually created in the form of written consent, a video streaming licensing is given to the third-party by the copyright holder for the use of their content. The agreement can involve a price paid for the license, the limit of use, and other conditions. For example, the owner of a TV program can give you a license to operate a movie or stream all the seasons of a particular show in your online platform to a specific period. Once the period of the agreement expires, it can be renegotiated or dropped depending on the viewer’s interests.
How Does Netflix License Their Movies & Shows?
To keep its subscribers satisfied with the number of content choices available for streaming online, Netflix partners with content providers to license streaming rights for movies and TV shows. A licensing agreement is established under the terms of a contract between content creators or owners and Netflix. Each agreement differs based on the requirements of both parties.
Securing Netflix licensing with moviemakers and content owners is one of the greatest expenses for Netflix. The company spends over $15 billion on production and content licensing. The growth of on-demand content has made it more difficult to obtain licensing inexpensively.
Here is what Netflix splurges on content- its annual cash spending over the years 2014-2019.
Netflix uses customer data mining to find out which content subscribers pay to watch and relies heavily on this info to determine the cost of each Netflix licensing agreement. Data is compiled to determine the total hours of viewing a TV program or movie generated over the period of a licensing agreement. Finally, this metric is compared with content arrangements, and it fixes final pricing on exclusivity and the time frame of the agreement.
Netflix also started investing in producing its own content in-house or acquiring exclusive rights to stream its originals shows like Orange Is the New Black, BoJack Horseman, Stranger Things, and a lot more. While Netflix owns all the rights to its originals and streaming it anywhere in the world, due to the unavailability of its service in some countries, it might not be able to secure the licensing right for such regions.
According to BMO Capital Markets, Netflix is planning to invest $17.3 billion in content and the content budget is beyond originals. The overall content spending of Netflix would be definitely more than the forecasts.
How To Get A License To Stream Movies?
Curating content for your streaming service requires constantly collaborating with content providers to acquire compelling content. However, when you are planning to build a streaming service on a large scale, it might not be easyobtaining rights to show a movie as the media houses might have already sold the rights of popular shows and movies.
In video on demand, licensing involves 2 parties- The content providers and the broadcasters. The streaming license agreement you make with the content providers will permit you to stream the complete show for a period of one or more years.
There are mainly 2 ways to license movies for streaming.
Contacting the copyright holder directly to obtain the license.
Rent the movies and shows from authorized distributors.
At times, content owners sign multiple contracts for the same content with multiple on-demand platforms. This is known as non-exclusive agreements and far less expensive than exclusive agreements which is another type of agreement.
Exclusive agreements are a differentiator among content providers, especially when there are a large number of video-on-demand services in the industry. An exclusive license agreement between a content owner and broadcaster can be fixed for a specific number of years where the broadcaster will have exclusive rights to manage and stream the content. Exclusive agreements are massive investments and come with a hefty price. But, exclusive content can draw large numbers of subscribers to your video-on-demand platform.
To start with the process, you have to approach the licensing team of a studio and the licensing agreements will differ with the type of content and studios. The next step is to fix the video content licensing fee. Depending on the type of video, its intended use, the nature of the content, and the usual laws surrounding supply and demand, the price of licensing can vary considerably.
“Terms of Use” is a crucial pact or treaty that you need to sign before you acquire licensing from content owners. One last thing to be noted is that you need to make sure that you secure all necessary documents and licenses to stream any video content on your website. Launching a streaming site may be easy, but certain things must be taken into account since your venture directly relates to financial elements and also license based concerns.
How Much Does It Cost to License a Movie/Show?
If you are planning to license movies and shows for your streaming website and want to know how much does it cost to license a movie, the cost can vary considerably depending on the following factors.
Terms and conditions of content owner or distributor
The demand of the content.
Audience size of your streaming platform.
Here is the amount of money spent by popular streaming services on content.
The video license agreement cannot be finalized with single pricing as many variables like the above-mentioned ones affects the price. If you want to minimize costs when you need to obtain a license to operate movies, make sure you choose movie distributors who offer cheaper prices than others.
Here are some of the common licensing models in the streaming industry.
Fixed License Fee
The streaming service pays a fixed license fee for a specific period. The license is not required to report back to the license granter the success of the program or share any revenue they have received. Netflix follows this method to license its movies and shows.
Revenue Share
The license holder agrees to share revenue with the distributor. It works on a pay-per-view basis.
Minimum Guaranteed Revenue Share
Some content owners or distributors might also agree for a low-cost streaming license agreement where both content owners and licensees take a share of the revenue generated from streaming movies.
If you are looking for how to get rights to stream movies for earning good revenue from your online streaming website like Netflix, you need to consider these factors when calculating the total licensing costs.
If you plan to establish a large streaming service like Netflix, you will have to spend billions of dollars on content licensing. However, you can start small, and as your streaming service grows you will be able to buy popular movies and TV shows that are in high demand.
Another alternative is to acquire content from authentic content marketplace for films and TV rights. Content marketplaces are trusted global community that connects content sellers and buyers to fix the deal effortlessly online. All negotiations and transactions are done completely online. These marketplaces partner with leading Hollywood trade bodies like EMA, Movie labs etc to implement existing global industry standards for content selling and purchase.
It connects both content sellers and buyers and facilitates buying of licensed content including both movies and TV shows at affordable prices through easy procedures. Most content marketplaces follow simple pricing where it charges monthly nominal subscription fee to distributors. If you want to reduce the licensing fee, acquiring content from global content marketplaces is a great idea as you have the flexibility to select the content based on your budget allocation.
Advantages of Movie Licensing
Unless you are using movies for non-commercial use, the law states that you must obtain permission from the copyright owner for any content that you have not created yourself but want to use or share.
Content licensing management is based on the avails that outline specific license rules about when TV shows or movie content can be shown. The Entertainment Merchants Association (EMA) has set predefined digital supply chain standards. Many of the popular video on demand platforms have a non-proprietary transactional video on demand solution called EMA avails and are successfully incorporating it into their workflow.
EMA is a leading Hollywood non profit trade body that offers a cross industry format called EMA avails for the delivery of licensing avails specifying how and when content can be presented to the audience.
EMA avails include data like title, language, episode title, episode number, viewing time frame, wholesale price, license type, caption availability, total run time, license rights description, and a lot other within the EMA standards. Major studios and on-demand services who support these content providers are adapting their systems to be EMA Avails complaint.
Besides abiding by the law, let’s have a look at the other advantages of obtaining a license to operate a movie.
Saves Both Time and Money
While producing original content is a great way to lure today’s demanding viewers, still it’s way too expensive. You have to bear the costs to hire a production house, creative team for direction and camera, a scriptwriter, and many other professionals unless you have your own team. The entire process not only takes a lump sum amount of money; it consumes a huge amount of time as well. In such situations when you cannot afford the efforts of hiring a creative team, licensing media content is the best alternative. You can save both time and money by licensing popular titles that your viewers would love to stream on. In simple words, paying a royalty fee for a piece of engaging content is less expensive as compared to investing a lot of money and effort in producing originals.
Boost Up Brand Credibility
Think about securing copyrights of Game of Thrones on your video streaming platform? Well, for sure, your audience base will skyrocket overnight. Obtaining streaming license agreement for shows that are in high demand among viewers will boost your brand credibility tremendously. Compelling content will accelerate the pace at which people would subscribe to your streaming platform which ultimately contributes to your brand credibility and enhances the exposure of your streaming service.
Balance Out Content Publishing
Today’s viewers are always searching for exclusive content that they have not streamed before. To retain your desperate viewer base, it is important to update your content library regularly with new and interesting videos. If you fail to add new content to your library, the chances are that you might lose some subscribers. One of the great ways to avoid such bad scenarios is to license popular titles from content owners and media distributors and publish it on your streaming platform. This will help to balance out content publishing frequency even if you don’t have new content to update on a regular basis as you are offering classic shows and movies your viewers would love.
How to start a Streaming service like Netflix – Business Startup Guide
In a digital era where everyone can create and distribute media, the regulations of engagements between the entertainment industry and viewers need more clarity. One thing that you must keep in mind is that you need to get the required permissions and licenses along with usage rights in order to stream your video content. If you are looking to stream TV series or movies, you must be rest assured that you have a license to stream this content. In case you are accumulating content from independent video providers, make sure the viewership and ownership rights are capped by the agreement.
Live streaming is a process of sending multimedia encoded content, especially video or audio across the network so that users and followers can view it immediately as per as their requirement. Users can download the entire media file if they feel the need of it. The process is simple, first the video buffers for a while and as soon as the buffering gets completed, it is played by the media player. The video streaming apps help to play this content as per as the user’s convenience. There are various live streaming services available today. Here is a list of the top 8 video streaming services of 2017:
Netflix:
Netflix is one of the leading networks of internet television which is accessed by more than 189 countries and 103 million users around the world. Netflix provides its users unlimited streaming of feature films, TV shows, movies, original programs, comedy specials and documentaries on a subscription basis. The subscription fee for one month for one standard definition streaming is $7.99, and for the new members, the subscription charge is $9.99 for two concurrent HD streams. And guess what, users get four parallel streams with a single subscription. Users can create up to five different profiles. Netflix is accessible on various devices such as PC and tablet. Now users can also download content for watching it later in offline mode. This is one of the best video streaming services available and is well-known for its good quality and performance. On almost any Internet connected screen, the user can watch as much as he/she wants anytime from any given place.
Hulu:
If the users want to stay updated with the latest TV shows, but they do not want to invest in HD antenna or cable subscription, then Hulu is the best video streaming solution for them. This is one of the video Streaming Platforms which offers popular as well as latest shows. For Classic and current TV series, along with the full season of original content, the user needs to pay $ 7.99 as a monthly subscription fee. The user can also get Show timings for the whole month at $8.99 charges through Hulu bundle and thus save $2 per month. An advertisement free tier costs $11.99 per month. It is supported on various devices, but they can stream only from one device at a particular session. At present Hulu has 12 million users. Recently Hulu released live TV for their user and simply named it Hulu with Live TV and its monthly subscription fee plans starts from $39.99.
Amazon Video:
Amazon Video is an on demand internet video service which is operated, developed and owned by Amazon.com. This Video Streaming service provides movies, television shows and much more. For $ 99 per year, the user also gets two days shipping on each purchase. Kindle book is free every month, using which a user can access Amazon Prime Unlimited Instant Video and Amazon Music both. Video streaming labels are around 40,000 trophies in Amazon stream, but only a fraction of Prime Streaming is included. Amazon also allows offline downloads. If someone has not finished watching all the HBO shows, then they can access and download the unseen videos whenever they want. Amazon launched their streaming partners program in the year 2015. At present Amazon has nearly 66 million Prime members. This streaming service does not work on Google Chrome, but it is accessible on Roku along with Amazon’s smart TVs, Fire TV devices and much more.
PlayStation Vue:
If someone likes to have wireless devices along with living TV at the same place, then PlayStation Vue is the best option for them. PlayStation started its journey as a primarily designed service for gaming consoles in the month of March 2015. But since, then there were many changes in the service offered by this organization. They have more than 1 million users. New channels were introduced, the prices have changed, the list of features got bigger, and supported streaming devices have also increased. To help customers choose among Vue and its competitors such as DirecTV and Sueley TV Now, they have made a full guide of Internet TV service. This outlines Vue’s numerous channel pricing and packages, as well as observing the supporting devices and reviews according to various users. This online video platform is available on a variety of systems; this is Sony’s first initiative to deliver live TV to its customers. They provide primary channels to their customers at a subscription rate of $50/ month and also $55, $75 and $65 subscriptions fee are available for various other packages.
YouTube TV:
YouTube TV is one of the most popular online video platform which provides live TV streaming, but it is still limited to New York City, Chicago, Philadelphia, San Francisco Bay Area and Los Angeles. If anyone stays in these cities, then they can get cloud DVR storage which is unlimited. YouTube TV will save the recording for nine months, and users can stream their content from any place in the US if they are connected to the internet. Monthly subscription charges are $35 along with the facility to cancel the subscription anytime. One subscription supports more than six accounts so that the members can share their subscription with friends or family. The users can operate from three accounts at the same time. YouTube TV provides live streaming from most popular cable networks and ABC, NBC CBS, FOX. Per day more than 30 million visitors visit YouTube. The total number of YouTube users stands at 1,300,000,000. For your information, this number is bound to become bigger.
Sling TV:
If someone prefers the idea of a cable subscription which gives access to numerous genres of content but is still hesitant to go for anything expensive, then Sling TV is the best option that he/she can get. Get thirty real-time channels with a monthly subscription fee which is way cheaper than other services available. Also, there is no fee for set-top box and there is no contract either. Sling Tv is mainly for sports lovers as it offers a variety of sports channels. And to everybody’s delight, it enables sports lovers to go wireless. Apart from sports channels, it also has Food Network, CNN, BBC America, TBS and Cartoon Network. The user will get the multi-stream option if he or she signs up in Sling Blue. The combo subscription fee is $40 per month. The user can record from this live streaming services and will be able to watch on Android, Roku, Amazon and Xbox One devices.
HBO Now:
The content of this online video platform is available online through HBO GO, but a user needs to pay for logging in and watch HBO TV. For many years, HBO did not agree to tie up with cable partners, but upon many requests from its fans, they have launched this Video Streaming Platforms named HBO NOW. The user can get a free trial via Google Play, App Store, and Amazon and also can add HBO NOW channel with their Roku player. Users may add their HBO NOW on their web package if they have internet service from Google Fiber, Frontier, Optimum, Liberty, Verizon and Service Electric. The live shows telecasted on HBO channel, are also shown on the HBO NOW at the same time. More than 2 million subscribers have subscribed for this app, and once users complete their subscription, they can watch it from their desktops, tablets, etc. The subscription fee of HBO NOW is $14.99 per month.
CBS ALL ACCESS
CBS All Access is one of the best user-friendly online video platforms that users can use to watch “The Good Wife” which is a spin-off of the popular show “The Good Fight”. Its users can also watch NFL games including the Football match that telecast on every Thursday night. In comparison to Hulu, $9.99 is the subscription fee for CBS All Access which is free from commercials. In addition, the user can select from an array of live shows. The user can watch this live streaming service on their mobile device, Android TV, and PC or via Apple TV, Xbox One Amazon Fire TV or PS4. Till date, about 1.5 million subscribers have subscribed to this apps.
If you have enough video content which can impress audiences in large numbers, you should definitely start your own on-demand video streaming business. Rather than building a site like Netflix or Amazon Prime from scratch, you should leverage turnkey software like StreamView. StreamView has multiple monetization channels, ranging from subscription plans, banner ads to pay –per-view schemes. Very often, video enthusiasts face trouble uploading videos. StreamView addresses this problem through a measure of multiple upload channels: Amazon S3 buckets, YouTube link, normal uploads and website link. This platform is search engine friendly. Admins can ban users if users do not adhere to your rules and guidelines. Users can report videos for abuse/violence and admin has the full authority to delete videos. To know more about its features, head on to StreamView now.
When it comes to watching your favourite TV series or the award show you have missed watching on television, the first option that pops up in your mind is Netflix. Netflix is one video streaming site that has gained a lot of popularity over the years ever since it was started. With its comfortable pricing structure and a wide range of shows, Netflix has managed to get onto the top of the table making it tough for its competitors to follow up. It is all about the Netflix business model that attracts customers from all over the world. Simultaneous logins, multiple device compatibilities, no-commercials policy add to the advantages of Netflix.
However, it is not that there are no alternatives to Netflix. There do exist sites similar to Netflix which are comparatively less popular. If you consider it in terms of apps, there are even apps which resemble Netflix and provide video streams. No doubt, Netflix alternative sites and apps also provide the same services as Netflix does, but they lack the technique to market themselves. Movie apps like Netflix need to increase their discoverability in order to improve their customer outreach.
Let us first understand why it is suggested to start a streaming site like Netflix. If you have an awesome script which serves as a fertile ground for dramatics and theatrics, you should reserve DRM (Digital Rights Management) privileges. Many budding and brilliant actors often get rejected due to many reasons. The talent, professionalism and discipline of such actors should be valued by effectively showcasing their performances on your streaming site. And doubts associated with your propensity for a stable source of income will be addressed, many thanks to Netflix. In lieu of the interconnectedness of these advantages, it is always recommended to start a streaming site like Netflix.
Well, let us now see some best Netflix alternatives which you might be interested to try the next time.
1. CRACKLE:
Crackle presented by Sony can be designated as the free version of Netflix. It is one of the best alternatives to Netflix which allows its users to watch movies, TV series and the Crackle originals, all for free. Be it comedy, action, drama or any other genre, Crackle comes up with new content every day. Sports and Anime sections are also covered in Crackle. The popular Crackle original ‘Comedians In Cars Getting Coffee’ has become one of the most viewed show in the world. One special feature of Crackle is its ‘Always On’ option which allows the viewers to search and stream what they want on other devices while their favorites are being auto-played.
All you have to do to get access to all these is to register and create an account for yourself. The next time you visit Crackle, you just have to login to your account through any device like your mobile / tablet / smart TV / streaming player / gaming console and watch your favorite shows. You can also install the Crackle app available in iOS and Android operating systems. Crackle also allows its users to pause and resume content across multiple devices, queue up the user’s favorite movies and TV series to watch anywhere and receive alerts to stay up to date with its network premiers. You can find Crackle here – crackle.com.
2. AMAZON INSTANT / PRIME VIDEO:
Amazon, which is one of the world’s largest eCommerce platforms, entered into the video streaming market with its Instant Video and Prime Video options for the users to watch their favourite shows and movies. Amazon Instant video allows its users to either rent or buy their favorite TV shows, animation specials, movies, educational videos, shows specific to channels, exercise and fitness movies etc. But if you are already an Amazon Prime member, you can stream all these unlimitedly. Thus spending $8.99 per month on Amazon Prime which includes the price for Instant video will serve your purpose of watching latest movies and shows. What’s more in the store is that Amazon provides a 30-day free trial offer, so that the user can decide upon choosing its service or not. Amazon Prime is competitively priced when compared to Netflix which provides three kinds of streaming plans – Basic ($8 per month), Standard ($10 per month) and Premium ($12 per month). Being very much similar to Netflix in all terms, Amazon Instant/Prime video can be chosen as one of the best Netflix alternatives. Check it out at amazonprime.com.
3. HBO Now
If you are a fan of HBO shows, you will love HBO Now as well. HBO Now is a great alternative to Netflix if you are fond of TV shows. Besides TV shows, there are movies and documentaries too. HBO’s on-demand streaming service features an extensive on-demand collection of popular shows and movies along with premium on-air originals. While on a pricey side with US$ 14.99 for subscription, it offers an ad-free viewing experience. HBO has a collection of recent mainstream movies and famous movies of years past over a broad range of genres. The complete Harry Potter collection, Atomic Blonde, Dunkirk, War for the Planet of the Apes, Logan, and Wonder woman for example. HBO now is quite similar to Netflix in a way that both focus on high-quality originals. It supports an impressive number of platforms like iOS, Android, Fire OS, Xbox One, PS4, Xbox 360, Google Chromecast, Amazon Fire TV, Fire TV Stick, Roku, and Samsung TVs.
Hulu is another alternative to Netflix which has become popular for streaming the latest episodes of various TV shows. Hulu being associated with TV networks like Fox has an advantage over Netflix in the case of TV shows. It is even known for its high-quality maintenance and accessibility on a wide range of devices like TV, Kindle Fire, smartphone, Xbox One etc. Hulu also provides a trial version to its users to decide upon subscription. There are two plans it offers to its users – Hulu which charges $7.99/month after a 30-day trial period and Hulu with Live TV(Beta) which charges $39.99/month after a 7-day trial period. What’s advantageous with the latter one is that you can stream live videos and can have access to 50+ on demand TV channels including sports, news and entertainment. Similar to Netflix, Hulu also produces original series which are not available elsewhere. Deciding to pick one between Netflix and Hulu is definitely going to be tough! Find it at hulu.com.
5. CRUNCHYROLL:
Crunchyroll is the best option to choose if you are a huge fan of Anime and Manga as it provides access to these shows within one hour of their television broadcast in Japan. Crunchyroll offers two plans – a $6.99 plan that streams popular TV shows without any ads and $11.99 plan that not only streams premier quality videos but also freely ships the items brought from the Crunchyroll store. Trial version can be used for a period of 14 days after which the user can choose either of the plans. There is no such video streaming site that provides access to the Anime and Manga series like Crunchyroll does. Crunchyroll is available on a wide range of devices like Roku, Nintendo, Playstation Vita, Xbox, Chromecast, Apple TV and also on iOS, Android and Windows phones. You would certainly choose this over Netflix if you’re a Naruto fan! The site address is crunchyroll.com.
6. TUBITV:
Tubitv provides a large library of modern classics and cult favourite TV shows and movies. Anime videos are a recent addition to the list. This streaming service boasts of more than 40,000 titles and is partnered with popular studios like Paramount, Lions Gate, Starz Digital and MGM. Tubitv is 100% legal and safe to use. It charges no fees and comes with ad-supported content. Tubitv is supported on most of the streaming devices like Roku, Apple TV, Amazon Fire TV, Xbox One, Xbox 360, Samsung Smart TV, mobile devices, Chromecast, Android and iOS devices. Special features like titles queue, watching history, resume playback and account synchronization are also available to improve customer experience. You don’t have to register to access the video streams, however creating an account will give you access to the special features earlier mentioned. The users have an option to register through Facebook, making it even simpler. You can find the original site at tubitv.com.
Though there are several other video streaming sites, they are not so better when compared to Netflix. Apart from the above mentioned ones, there are other alternatives like Fandor, HBO Now, Vudu, Mubi, Acorn that provide more or less similar services. But these streaming sites differ in their pricing structures, device compatibilities, availability across regions and video library ranges which make them less desirable when compared to Netflix. If you are willing to explore different video streaming sites like Netflix, above are the best five you can choose from.
7. Fandor
If you are getting bored with the Netflix catalog, Fandor can be a great destination to enjoy classic cinematic offerings and Arthouse favorites. The Fandor experience is completely different-it combines breathtaking eclecticism with digitalization of film buff culture. It also offers a good collection of documentaries and the collection is updated weekly so there always something new,
The monthly subscription is priced at $5.99 with a 14days trial and the yearly subscription comes around $49.99. For the monthly price, you can watch as many videos as you want as you are not under any obligation to get into a long term commitment. Fandor also offers accurate information and intelligent descriptions of films being offered so that you can make the right decision to watch or not. They also provide trailers so that you can watch clips of movie before actually investing your time in them.
If you are looking to start a live streaming venture, try StreamView, a turnkey software that pledges superior services. One of the hallmarks of StreamView is that it helps you replicate the business model of Netflix and Amazon Prime. Everything is automated and thanks to multiple monetization options, revenue generation seems legit. Known for its assortment of themes and diverse layouts, StreamView brings effective streaming to the table. Check its features here.
If you have any doubts or concerns, feel free to drop a line or two in the comments section. I shall reply in a day or two. Keep watching this space for insights and hacks on live streaming apps. Cheers!
Curating content for users is a complex task. It involves continual collaborations with content providers, analytics to assess your content traction and being ahead of the content curve. In the Over the Counter (OTC) race, first-mover advantage is everything.
If you’re looking for ways to source content for a Video on Demand (VOD) site of your own, you’ve reached the right place. With this handy little guide, you can sketch out a scientific content strategy that will help you curate your offerings by making sure they are relevant. If you are a first-time entrepreneur and are yet to finalise your technology, consider opting for a turnkey framework that will allow you to get going with your business within a few days. Opting for a ready framework is far less expensive than building your own technology, and you’ll save so much more time. Consider something like Streamhash, an impressive turnkey technology being used by numerous video tech startups today.
Once you’ve finalised your technology, on to content curation:
Create Content Partnerships & Licensing:
Regardless of whether you’re looking to charge a fixed member subscription, feature advertisements to monetise your platform, or offer differentiated packages for various segments, your content must be worth the price. Subscribers seek new content all the time, and as a broadcaster, you need to be on your toes, negotiating deals with content providers.
How Does Licensing Work?
So, how does licensing work? As far as VOD goes, licensing involves two parties; you (the broadcaster) and the content provider. The agreement that you chalk out will essentially give you permission to stream the movie, TV show or documentary of the content owner on your platform. It will be legally binding, and its terms could change with every renewal, as your relationship with the content provider evolves.
Let’s take an example to make this clearer. Say that you are seeking a TV show from an owner. The owner may give you permission to broadcast the entire show on your platform for one, two, three or even more years. And perhaps, when the agreement ends, the contract will be renewed if you and the owner find the proposition lucrative. Sometimes, content owners sign contracts for the same content with multiple VOD services. These are known as nonexclusive agreements, and are far less expensive than exclusive ones.
How Important is Exclusivity?
As the VOD market sees a plethora of players trying to get their foot in the game, content exclusivity has become a primary differentiator amongst content providers. An exclusive content agreement between a content owner and broadcaster may be fixed for a specific number of years, or in perpetuity, depending on the nature of the content. These are massive investments, and done after a huge amount of thought. That said, exclusive content can draw a larger number of subscribers to your platform in the long run.
Use Data Analytics:
If you want to become big in the game, you must invest in analytics. Of course, basic analytics come built-in with technology frameworks like Streamhash, but consider using advanced analytical tools as you scale your business. Here’s why. Content is expensive to procure, more so if it is exclusive to your platform. That’s why it is important to know what your users will like.
How Netflix Has Mastered Data Analytics:
Let’s talk about Netflix here before we go on any further. Netflix has set one of the best examples in data mining and analytics for content procurement. It has myriad trackers in place to gauge a user’s behaviour. If you’re watching Fuller House, for example, Netflix can place a finger on the number of episodes you’ve watched, where in the last episode you paused and how long you took to move on to the next episode. By drawing behavioural trends amongst users, they gauge overall engagement, and use this data to help them decide whether they should renew a show for a new season, invest in a brand-new show that is built for a similar segment or move away from the user segment entirely.
Netflix, And The House of Cards
In 2011, made an unprecedented move in the content space. It beat premium television networks like HBO and AMC to clinch two seasons, with thirteen episodes each, of The House of Cards. The deal was worth over $100 million. Steep? Of course, but Netflix knew what it was taking on.
The company had considered a few things before inking the deal. Firstly, it knew that many viewers had watched the movie, The Social Network, right through to the end. Secondly, it knew that the British version of The House of Cards had been lapped by audiences. And finally, Netflix had drawn a link between common users who had watched the British version, and who had also watched movies featuring Kevin Spacey, or those directed by David Fincher. It was almost like a digital Venn diagram that Netflix had captured, housing a certain volume of users in each circle.
Once the agreement was formalised, Netflix employed a phenomenal promotional strategy. It crafted 10 different cuts of the trailer for The House of Cards, each tailored for a different audience. Viewers whose consumption included many Kevin Spacey movies saw a trailer that included him, viewers who watched movies centred on women, were given a trailer featuring women. The show brought in 3 million new subscribers to Netflix, almost enough to cover the total cost of the show. Plus, it significantly improved the retention rate of existing users.
Outplay Television
VOD is today, what television was ten years ago. Users favour on-demand consumption. Today, you don’t have users hurrying home from work in time to catch a movie premiere. It doesn’t happen. We spoke about how Netflix outbid HBO and AMC for The House of Cards earlier. Yet, that was just one example. The company also picked up exclusive rights for Fuller House back in 2016. In world markets, VOD players are bidding to showcase movie premieres on their platforms before television networks. So, the potential of VOD extends across television and film.
In 2016, Disney signed an exclusivity deal with Netflix, allowing the latter to broadcast all its latest movies on its platform. Fresh Disney content was withheld from television and rival VOD players such as Amazon Prime and Hulu.
The advantage with VOD is that it also offers a more premium experience than television, with its custom-targeted ads and fluidity across devices. Picking a technology like Streamhash can help you tweak the appearance of your site through an admin panel and built-in customisation features.
Pick a Content Collaboration Format
Your monetisation model may not be a replica of Netflix’s model. Perhaps you plan on charging customers per offering, or provide packages with varied offerings in each. If your revenue model is skewed towards an à la carte proposition, it would make better sense to enter a revenue sharing deal with a content provider. On the other hand, if you are thinking of offering standard packages like Netflix, a fixed license fee could work well. Here are three types of content licensing deals you could consider:
Fixed License Fee: Here, you, as a broadcaster, pay a fixed sum for an agreed tenure and geography. The success of the content is irrelevant to the content provider, and it is up to you to recover the investment through sales.
Revenue Share: In this case, you and the content owner split a percentage of the revenue received from content sales on your platform.
Minimum Guarantee with Revenue Share: This is like a revenue share model, but you, as a broadcaster, must promise to pay a minimum fee to content owners even before revenue starts rolling in. If your platform exceeds a predetermined expectation, you pay the excess money collected to the content owner. This model is extremely popular.
Create Your Own Content
Both Netflix andAmazon Prime have created their own original content to lure viewers onto their platforms. Netflix has created popular shows like Fuller House and The Ranch, and Amazon Prime has been recognized for its original series, including Mozart in the Jungle and Red Oaks. Creating original content is more cost-effective than procuring resale content from content owners. You also have the added advantage of applying data mining tools to create content suited to your audiences. As a content creator, you have tighter control over your offerings.
An effective content strategy can catapult your platform to the big league. Leverage content partnerships to get you there.
