Consumers like to stream – and binge watch – content, with streaming services, content providers, and other companies fighting for their share of a booming industry.
Billions of dollars are now being invested in original content, and Netflix is ready to spend up to $7 billion in 2018 on exclusive content. However, HBO CEO Richard Plepler has a slightly more cautious approach to spending, though the company did spend $2 billion in 2016 for content alone.
Here is what Pepler said while speaking on CNBC recently:
“More is not better, only better is better. It is very hard to create outstanding content, and we think we have a good record of doing that very very well. We’re not trying to create the most, we’re trying to create excellence across our categories – and we have more than the resources necessary to do that.”
Even with a strong portfolio of original content, 73 percent of HBO TV and streaming viewing is focused on movies from Hollywood studios. Cord cutting is no longer just a fad, with consumers increasingly picking and choosing what they are willing to pay for.
Meanwhile, when it comes to favorite content 46 percent of viewers prefer content on Netflix, ahead of Amazon Prime (38%) and Hulu (15%), according to a recent survey done by SurveyMonkey. Interestingly, the survey found that more than half of survey respondents prefer TV shows and movies already available — though 43% prefer original content.
Many of us find abandoning traditional service providers to be difficult, and researchers found “consumers are happy with the mix of choices they can have,” according to Jeff Conklin, VP of Technology Media and Telecommunications at J.D. Power, in a statement to Marketing Daily. “… it seems it’s not going to be a sea of change we had heard about, at least not in the near-term.”Source: CNBC