According to PriceWaterhouseCoopers's (PwC) Media and Entertainment (M&E) outlook for 2018-2023, the U.S. industry, which represents one-third of the global M&E industry, is expected to reach more than $825 billion by 2023. This includes revenues from global content creators (Disney, Fox, Warner Bros., Starz, CBS, AMC, etc.), linear broadcast via multichannel video programming distributors (Comcast, AT&T, Verizon, Sky, Virgin, etc.), digital stores (Apple iTunes, Amazon Prime, Google Play, etc.), and digital streaming platforms (Netflix, Amazon Prime, YouTube, etc.).
In 2019, Zenith forecast that an average person will watch 84 minutes of online video daily—up 15 minutes from the previous year. In countries such as China and Sweden, the daily average viewing time was reported to be 100 and 103 minutes, respectively. According to Netflix's vice president of original content, Cindy Holland, an average subscriber spends 120 minutes daily on Netflix. Nielson's 2018 data for the United States reported that audiences within the age groups 50-64 and 65+ watched a whopping 5.4 hours and 6.6 hours respectively on linear pay-tv.
Yet despite this obvious global surge in demand for video consumption, ensuring seamless title and data delivery through the traditional and nontraditional supply chain is still as complicated as ever. In 2020, content creators have various options in terms of distributing their content. For example, a title can be released digitally on transactional-video-on-demand (TVOD), subscription-video-on-demand (SVOD), advertising-video-on-demand (AVOD), Pay-TV and Pay-per-view channels. Some studios and networks such as Disney, Warner Bros., and HBO also have a Direct-To-Consumer (DTC) option. In such a scenario, an optimal revenue strategy that maximizes potential for its content is dependent on effective management of rights and availability windows.
Peter Drucker said, "What you can't measure, you cannot manage. What you can't manage, you cannot change." In light of the media and entertainment industry's complex and unreliable supply chain, Peter Drucker's famous quote could be reimagined to state, " What you can't monitor, you cannot measure. What you can't measure, you cannot manage. What you can't manage, you cannot change." In order to have absolute control over the titles available across the various channels of distribution, it is inevitable that the process needs to start with monitoring the availability schedules and the quality of title listings from the lens of the consumer.
When supply chain activities are out of one's control, global release inefficiencies are bound to pile up, and with them, customer complaints. This leads content creators to respond in a reactionary mindset, always playing a catch-up game. With respect to TVOD title releases, Spherex's 2019 analysis reported that, on average, premium titles risk losing global revenue between $2.5 to $6.1 million per daydue to title availability and quality issues. Whether you're a studio, a distributor or MVPD, or a digital store, it's time to start monitoring your content closely, if you're not already. It is never too late!
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