Study: Turning content dollars into audience - Page 23


The relatively steep audience growth of streaming services, in particular, seems to correlate in

most cases with their investment in content. The shift toward investing more in original,

exclusive content is especially prevalent among streaming providers. Thus, the hypothesis that

originally produced content significantly impacts the conversion rate from non-paying to paying

subscribers is supported by the strong audience growth of the streaming platforms displayed in the

goetzpartners Content Efficiency Index. In addition, the index presents the share of spending on

licensed content in comparison to original content.

Among all global streaming providers, the share of spending on original content has increased

significantly over the last years. Netflix acts as a pioneer in that movement, which is also confirmed

by the current number of originally produced TV shows: 461 of 726 titles on Netflix are

originally produced (approx. 64%), which translates to 1.7 times as much original content as all other paid streaming services combined10). Interviewed industry experts* also confirm that while the availability of the content on offer is very important to consumers, it is quality that drives sales. Thus, most providers aspire to produce and offer blockbuster series and movies on a regular basis

so that subscribers are compelled to stay with their channel.

It is not only streaming platforms that are focusing on original or local content; linear channels are also experiencing a shift in that direction. For example, as part of its corporate transformation, ProSiebenSat.1 even changed its strategy toward producing more original, local, live, and news-driven content. Its originally produced content is able to attract a larger share of its target

audience, and especially live shows are growing inpopularity, for example, the Masked Singer.


*goetzpartners expert panel. The interviewees hold senior positions in content selection and purchasing.

3.2 Change in strategy – focus on exclusivity