Success breeds success. Video on demand services are increasingly latching onto what works best to attract Millennials. This demographic, more than any other, is more likely to watch streaming content than live television. And of those that do watch television, 35% watch programming after it has originally aired on services like Netflix and Hulu, while 20% watch DVR recordings. By comparison, those older than 35 watch live TV 66% of the time.
Let’s look at success by the numbers:
$1 billion: The amount Apple plans to spend for new content over the next year in an effort to compete with Netflix and Amazon. In June, Apple hired two former Sony executives to purchase programming and films for Apple’s upcoming streaming service. Apple’s goal is to double revenue by 2020 for its service businesses. By next year, Apple plans to release up to 10 original programs. The $1 billion in funding is an increase from Apple’s budget in April. By comparison, Netflix is spending $6 billion and Amazon is spending $4.5 billion this year. Source: Bloomberg
Undisclosed: The amount of the multi-year deal Netflix signed with television producer Shonda Rhimes. Rhimes is best known for the ABC shows Grey’s Anatomy and Scandal. Under the new deal, she will move her production company from ABC Studios to Netflix. “I’m thrilled by the idea of a world where I’m not caught in the necessary grind of network television,” Rhimes said. The move comes as Netflix hopes to produce more of its own content and better compete with Amazon. During her 15 years at ABC, Rhimes’ programs have generated more than $2 billion in revenue. She was paid more than $10 million annually to produce ABC shows. Rhimes still will be involved with her current ABC shows, but Netflix will have the rights to produce anything new. Netflix also has signed a deal with directors Joel and Ethan Coen to make a Western series. Source: The Wall Street Journal
$3.3 billion: The amount of revenue for the independent television sector in the UK in 2016, according to Pact’s latest Financial Census. That’s 2.9% less than the previous year. During the same period, international revenue reached $1.04 billion, a 5.3% increase and driven mostly by Netflix. UK programs that already have aired and are available on streaming sites have increased 166% since 2008. Brexit, however, may have a negative impact on the content market. Source: Televisual
$3.99: The amount Amazon is charging for new subscription-video-on-demand service, Brown Sugar, run by TV network Bounce. The service features African-American movies. Amazon Prime members will received a seven-day free trial. The service also will be available online and on Roku and Apple TV. Source: Fortune
$240,000: The amount the Canada Media Fund and Medienboard Berlin-Brandenburg, a German funding body, are offering for producers to create digital media projects. The funding is an advance for production. Projects will be judged on audience engagement and creative elements. Winners will be announced in February. Source: C21Media
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