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However, the trend toward originally produced content has been amplified in recent years, since
the exclusive availability of premium content on the producing platform is often used to attract
new and feed existing customers. Major global streaming platforms, in particular, have started to
increase their overall content investments, spending the majority on original content. For example,
in 2019, US media and entertainment companies spent over $120 billion on original content, with
five large corporations accounting for almost 73% of that spending . Besides the differentiating
factor of exclusive original content, consumer preferences have been changing over the last years.
In particular, the younger audience is not looking for American content only but for local content
created all over the globe . For example, Netflix announced that it would invest $500 million in
Korean content only in 2021 , and some of its most popular shows in the last three years were
originally from other countries*. Consequently, the demand for original content is still not satisfied
and there is a lot of potential for all players in the media industry to participate in fulfilling that
demand.
*including Casa de Papel & Elite (Spain), Dark & Babylon Berlin (Germany), and Lupin (France)
The continuous revenue streaming providers receive from monthly subscription payments enables
them to spend decent amounts on content, both licensed and originally produced. Most
linear TV channels do not have the financial means to invest similar amounts in content, since
private TV channels rely on advertising as their main source of revenue and public TV channels on
monthly broadcasting fees paid per household. Especially productions of original content are
capital-intensive compared to licensed content, which is why linear TV channels are limited in their
investment possibilities for expensive original content production.
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