{"id":102554,"date":"2022-05-27T19:14:11","date_gmt":"2022-05-27T13:44:11","guid":{"rendered":"https:\/\/centralrecorder.com\/make-no-mistake-content-spending-isnt-going-down-anytime-soon\/"},"modified":"2022-05-27T19:14:11","modified_gmt":"2022-05-27T13:44:11","slug":"make-no-mistake-content-spending-isnt-going-down-anytime-soon","status":"publish","type":"post","link":"https:\/\/centralrecorder.com\/make-no-mistake-content-spending-isnt-going-down-anytime-soon\/","title":{"rendered":"Make No Mistake, Content Spending Isn\u2019t Going Down Anytime Soon"},"content":{"rendered":"
\n <\/b><\/p>\n

Despite the messaging, streamers are increasing their programming budgets this year and those dollars should go to building franchises<\/p>\n

\n

After\u00a0Netflix\u2019s recent first-quarter earnings and the continued tumbling of financial markets, many believe content spending by the major streamers will go down. Wrong! Never before has there been more of an existential need for exclusive marquee content by all major streamers and media companies to break out of the pack and hold our attention (especially now, as we hold on more tightly to our collective wallets). Increasingly fickle consumers need to make snap decisions about what they watch in our increasingly overwhelming world of content. And that means one thing. Content spending will continue to rise as all players scramble to acquire the best of the best.<\/p>\n

The ever-increasing massive content dollars speak for themselves. Disney has increased its 2022 content spend $8 billion (up to $33 billion), NBCUniversal is doubling its Peacock spend this year (up to $3 billion<\/a>), and Netflix\u2019s 2022 content spend is going up, not down (up to $18 billion<\/a>). Amazon and Apple are also massively increasing their content spends. Not surprising for companies that have multi-trillion dollar valuations and where content is used as marketing to increase net promoter score (NPS), a metric for customer loyalty, and overall brand \u201cstickiness\u201d and consumer spending.<\/p>\n<\/div>\n

Become a member to read more.<\/p>\n

\n
\n\t\t\t\t\t\t\t\t\t\"Starz<\/p><\/div>\n

So the question isn\u2019t whether content spending will rise (it will). Rather, the relevant question is where those burgeoning content dollars are best spent. And the increasingly obvious answer is for content spending to focus on instantly recognized and impactful literary and intellectual property franchises and name brands that solve the consumer viewing dilemma. Franchise content is the ultimate weapon.\u00a0It gives consumers the short-hand they need to navigate this content barrage via a \u201cless is more\u201d content strategy \u2014 i.e., less sheer volume (fewer titles), but more impact (content that immediately grabs our attention via instant \u201cbrand\u201d recognition).<\/p>\n

Disney is \u201cExhibit A\u201d in this regard with its holy programming triumvirate of Marvel,\u00a0\u201cStar Wars\u201d and\u00a0Pixar\u00a0\u2014 not to mention its beloved Disney princesses. Its continuing paid subscription success in the face of the challenges of others makes the case. The Mouse House added to its IP franchise fire power, of course, when it acquired the\u00a0X-Men\u00a0and\u00a0Avatar\u00a0franchises from Fox in a galaxy not so far, far away. Smart. Smart. Smart.<\/p>\n

Data insights firm Kantar recently underscored this reality<\/a> and offered this solution: \u201cThis means platforms need to heavily market and recommend specific titles as opposed to broader platform catalogues to help consumers with decision paralysis.\u201d\u00a0In other words, less is more \u2014 franchises! Kantar cites the power of\u00a0the \u201cStar Trek\u201d franchise\u00a0in accelerating Paramount+\u2018s first-quarter 2022 growth by 20%. \u201cParamount+, still one of the younger platforms on the market, is demonstrating how a single title can drive growth,\u201d concluded Kantar.<\/p>\n

\n\t\t\t\t\t\t\t\t\t\"Why<\/p><\/div>\n

Franchises come with built-in mass audiences around the globe and can be the gifts that keep on giving \u2014 endlessly repurposed and repackaged for decades across all media platforms. If done right, IP franchises never get old. And want added franchise power? Bring the audience itself into the act. We will ultimately see content\/IP franchise owners give audiences incentive-aligning \u201cskin in the game.\u201d Web3 promises to enable fans to accelerate the value of their favorite franchise IP over time via their own individual social marketing and distribution \u2014 and even direct financial investment. Audiences ultimately will share in the financial value they create.<\/p>\n

But these content franchises are increasingly harder to find, and that scarcity makes them even more valuable. That\u2019s great news for \u201cbrand\u201d names and IP franchise owners. Not so much for the media buyers in an increasingly hyper-competitive market.<\/p>\n

The great hunt for the elusive franchise is on. Grab your popcorn (and your calculators) to watch this thriller unfold.<\/p>\n

Peter Csathy is chairman of CREATV Media<\/a>, a boutique media, entertainment and tech M&A and advisory firm. You can follow him on Twitter @pcsathy<\/a>.<\/em><\/p>\n

\n\t\t\t\t\t\t\t\t\t\"Why<\/p><\/div>\n<\/div><\/div>\n