21 / 09 / 16

  OTT, Content

  USA

  Netflix, Amazon

Netflix Could Hit 50% Original Content Within Five Years

Netflix is ultimately aiming for a 50:50 split between original and licensed content, according to its chief finance officer, who claimed that the streaming subscription service is between a third and halfway to meeting that goal already.

There are some different interpretations of this split:

1. Content spend.

2. Volume of newly acquired content.

3. Total volume of content in the Netflix catalogue.

In regards to the first and second points, this could be true. However, in terms of total volume, Netflix USA was less than ten per cent of the way there at the end of Q2 2016. Ampere estimates that originals constituted 4.6% of its title count and 4.2% of its available content hours. Nonetheless, this proportion was significantly greater than Amazon Prime Instant Video USA, whose originals represented just 0.4% of its catalogue at the same point in time.

Were Netflix to be aiming for equal volume of unique titles of original and acquired content, one way to achieve this goal would be to continue honing its catalogue, which decreased in number of unique titles in the USA at a rate of around 20% year-on-year from Q2 2015. It also more than doubled the number of original shows in the same period. Were Netflix to continue shrinking its catalogue at this rate, it would be down to around 2,250 distinct titles within the next five years; about a quarter of its current catalogue size. This would require roughly 1,125 originals for a 50% split; almost four times more than its selection at the end of Q2 2016.

But Netflix is adding new original series at an accelerating rate. Netflix finished 2015 with approximately 700 hours of original content and has pledged 600 additional hours in 2016. If Netflix continues to add original content at this rate, and continues to trim its catalogue, we estimate that it would reach its 50% originals target (measured by content duration) by mid 2021.


6 / 09 / 16
Consumer preference vs content catalogues: Are SVoD services meeting subscriber needs



Data from Ampere’s Q3 2016 Consumer Survey shows that in the USA, the top 3 genres enjoyed from both Netflix and Prime Instant Video (Prime) were, Comedy, Action & Adventure and Crime & Thriller. However, in the UK and Germany this was slightly different. Although, the top spot remained unchanged for both platforms, second and third for Prime were Action & Adventure and Sci-Fi & Fantasy, whereas Netflix had Crime and Thriller in 2nd and Documentary in 3rd.


If we compare what viewers of these platforms enjoy relative to the number of hours of content available by genre, a different picture emerges. In the US, Prime has more than double the content in the Documentary genre, whereas Netflix has 30% more content available in Comedy. In the UK and Germany, a similar story can be seen for the overall distribution of content. However, Prime has more than double the Children's content of Netflix, while Netflix still dominates in Comedy.


Both platforms are strong in Drama. However, for the US, both platforms have little Action and Adventure and Crime and Thriller - surprising given that they are the 2nd and 3rd most popular genres. Netflix caters for the No. 1 genre for consumers, however in both UK and Germany documentaries are left wanting. Yet, this is in stark contrast for Sci-Fi and Fantasy fans, where Prime users would struggle to find content they have not seen, in the third most popular genre.

21 / 08 / 16

  OTT, VoD

Vevo seeking $0.5bn - could be highest value MCN deal yet

Music video network Vevo is reportedly seeking $0.5bn of investment for expansion and diversification. Ampere estimates that the MCN is currently worth nearly $2bn.

18 / 08 / 16

  VoD, Online Video Advertising , Online Advertising , OTT

  Verizon

MCN valuation trend reflects maturing business

Despite increasing overall company valuations, an update to Ampere's 2015 review of MCN acquisition trends reveals a downward trajectory in the value that purchasers are willing to place on MCN audiences.

11 / 08 / 16

  Free-to-air TV

  UK

Non TV-licence payers to lose access to nearly 4,000 hours of BBC content on iPlayer

The BBC's closure of the iPlayer loophole will deprive those who do not pay TV licence legal access to nearly 4,000 hours of content.

1 / 08 / 16

  Pay TV, Content, SVoD

Kids' YouTube content getting more 'TV like'

Content aimed at young children on YouTube is getting more TV like, increasing in length and refresh rate, an analysis of the top 50 kids' channels shows.

28 / 07 / 16
A Premium on UHD

UHD content rental and retail prices are roughly double that of HD prices, but with an industry-wide push for more UHD content, we expect this price premium to decrease in the coming year.

21 / 07 / 16
Netflix expanding European catalogues six months on from global launch

Six months on from its global launch, Netflix is continuing to expand its range of content in Europe, particularly in key Eastern European markets

15 / 07 / 16

  SVoD, Content, Programming, OTT, Pay TV

  USA

  HBO, Netflix

HBO and Netflix lead the way in 2016 Emmy TV series nominations.

A closer look at the Emmy nominations for TV series with Netflix and HBO leading the way.

More

© 2015 Ampere Analysis Ltd