Research |
Licensing makes a comeback
Research from Ampere
Analysis shows that , after
four years of major studios
employing an exclusivity
approach to the distribution of
their TV content on streaming ,
licensing is steadily making
a comeback . Analysis reveals
that the number of TV seasons
cross-licensed between Netflix
and Warner Bros Discovery ’ s
( WBD ) Max and Discovery +
more than tripled in 2023 .
Amazon ’ s overlap with studios ’
streaming services also grew
significantly .
The analysis focuses on the
characteristics of studio TV
titles licensed in recent major
deals including agreements
between NBCUniversal , Disney ,
WBD and Netflix . Ampere
used these characteristics to
formulate a ‘ licensing power
ranking ’ and then analysed
studio catalogues to identify
the number of titles currently
held back that meet these
criteria . Titles with ‘ licensing
power ’ fulfil the following
criteria : they have completed
their first run , have at least
three seasons , are Scripted , of
US-origin , and still maintain
consumer engagement
measured with Ampere ’ s
Popularity Score *.
Disney holds the most titles
with licensing power , owning
148 that were still exclusive
to its own streaming services
as of December 2023 – a
potential licensing cache more
than double the size of any
other major Hollywood studio .
Comedy and Children &
Family genres are especially
appealing
• Across all four major
studios ’ titles with licensing
power , Comedy is the most
common genre , accounting
for 25 per cent . This is driven
by US audiences ’ continued
interest in a host of locally
produced long-running
sitcoms . Many of these ended
their run long ago ( including
The Office , The Golden Girls
and Seinfeld ) but some are
more recent hits ( such as
Brooklyn Nine-Nine ).
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• The enduring nature of these assets is a desirable characteristic for streamers . Their sheer volume can keep audiences engaged for longer , making them a valuable subscriber retention tool . This is particularly the case as churning and re-subscribing to subscription services is becoming an increasingly common behaviour . They are also effective in generating ad-revenue .
• 32 per cent of Disney ’ s reserve of identified titles are Children & Family content , making the genre a significant contributor to Disney ’ s lead with titles like Malcolm in the Middle and Hannah Montana .
• Not all identified titles with licensing power will necessarily be cross-licensed . Six of the 20 most popular titles in Paramount Global ’ s vault are in the Star Trek franchise . Studios were understandably reluctant to give up exclusivity for major franchises as they built their streaming services . But WBD ’ s 2023 deals to license recently released DC-adapted content to Amazon , Netflix and Tubi demonstrate that even strategies around exclusivity for core IP is now changing . Finding the ideal licensing partner
• Several recent examples of titles that have seen a huge boost in popularity following transmission in a second window suggest that studios should seek licensing partners ( like NBCUniversal ’ s Suits on Netflix ) with the largest userbase and the smallest audience overlap .
• Ampere consumer data shows that 44 per cent of viewers who did not watch Disney + in the previous month did watch Netflix , making it the most used platform among this cohort , followed by Amazon and Hulu . These three platforms also top the list among viewers who did not watch other major streamers , including Discovery +, Max , Paramount + and Peacock .
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• However , AVoD platforms Tubi and Pluto TV follow Netflix , Amazon and Hulu as the most watched streaming services among viewers who did not watch Disney +. At 16 per cent for Tubi and 15 per cent for Pluto TV , this puts them ahead of Max , Paramount + and Peacock . The prominence of AVoD services extends to other major SVoD platforms .
• Cross-licensing with AVoD platforms is more likely to skew towards unscripted content . The proportion of TV seasons shared between major studio backed SVoD platforms that are unscripted is 29 per cent . But of the TV seasons shared between ad-supported services and studio streamers 46 per cent are unscripted .
• Unscripted titles licensed to AVoD services are also more likely to be nonexclusive . Of the unscripted TV seasons shared with AVoD services , 5 per cent appear on two or more major AVoD services , compared to just 36 per cent of scripted titles . Rahul Patel , Research Manager at Ampere Analysis says : “ We expect more licensing deals for high profile titles to be struck in 2024 between major VoD providers . Studios ’ strategies will need to carefully balance exclusivity and non-exclusivity to ensure their streaming offerings are distinct and compelling while also maximising the value of their content as it moves to a second window . Licensing can expand the audience for existing assets , extend shelf life and at the more successful end of the scale , inspire franchise expansion . This was the case with NBCUniversal when it commissioned a Suits spin-off following its success on Netflix . Such an approach is particularly beneficial in the current climate when commissioners are being increasingly cautious with their content spend .”
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UK consumers won ’ t pay to remove Prime ads
Survey insights from LoopMe ,
a technology company that
uses artificial intelligence ( AI )
to improve brand advertising
performance , reveal that the
majority of UK consumers
aren ’ t prepared to pay to go ad
free on Amazon ’ s streaming
service .
Amazon Prime members
in the UK now have to pay
an extra £ 2.99 (€ 3.50 ) per
month for an ad-free viewing
experience . Whilst 82 % of
consumers responded that
Amazon Prime is good value
for money , LoopMe data
reveals that three quarters
of UK consumers ( 73 %) are
unwilling to pay extra to opt
out of advertising .
However , the move is
unlikely to cause subscribers
to leave the streaming giant .
Only a fifth ( 19 %) of consumers
said they would not keep
Amazon Prime Video when it
introduces ads , with a quarter
( 24 %) stating they would retain
their subscription as they did
not mind ads . A further 11 %
answered they would keep the
subscription if the ads were
relevant . Respondents aged
25-34 were most likely to pay
for an ad-free experience , with
15 % willing to increase their
subscription .
Unsurprisingly , Amazon
Prime ’ s additional services
not offered by its streaming
competitors – including its
delivery and Kindle offerings
– are key factors in Brit ’ s
attitudes to the subscription
service , with 38 % answering
they would keep Amazon
Prime Video with ads if they
could still use other Amazon
Prime Services .
Other insights from
LoopMe address the potential
impact on streaming services
in the event of a recession .
Interestingly , 76 % of
respondents said they had no
plans to cancel any of their
subscription services in the
next three months , with Gen Z
consumers aged 18-24 making
up the largest proportion of
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