This document summarizes a report from Futuresource Consulting on trends in over-the-top (OTT) streaming services and original content. It finds that Netflix and Amazon are driving growth in original content worldwide. In the UK, multiple services are contributing to subscription video on demand (SVOD) growth. Original content is an important factor for keeping subscribers to Netflix. The next wave may see the rise of OTT channel aggregators and the launch of Disney+, which could disrupt the current complementary landscape of services.

1. | © 2018 Futuresource Consulting Ltd
OTT SERVICES, ORIGINAL CONTENT & EXCLUSIVE
RIGHTS
David Sidebottom, Principal Analyst:
Entertainment, FutureSource Consulting
MME 4.5 is
created by
#MME4pt5
#AttentionEconom
y

2. | © 2018 Futuresource Consulting Ltd
David Sidebottom
OTT Services, Original Content &
Exclusive Rights
20th November 2018

3. | © 2018 Futuresource Consulting Ltd3 | © 2018 Futuresource Consulting Ltd @Futuresourcer
NETFLIX & AMAZON DRIVING ORIGINALS & EXCLUSIVES WORLDWIDE
USA 57m
UK 8
Brazil 7
Canada 6
Mexico 6
Nordics 3
Others 38
International
68m
USA 57m
Germany 10
UK 7
Japan 9
Canada 2
Others 15
International
43m
Total Q1 2018:
125 Million subs
Total Q1 2018:
100 Million subs
Source: Futuresource Video Insights Market Tracking

4. | © 2018 Futuresource Consulting Ltd4 | © 2018 Futuresource Consulting Ltd @Futuresourcer
UK SVoD GROWTH COMING FROM MULTIPLE SOURCES
0
2
4
6
8
10
12
14
16
18
20
2012 2013 2014 2015 2016 2017 2018
Subscriptions (Millions)
Others

5. | © 2018 Futuresource Consulting Ltd @Futuresourcer5 | © 2018 Futuresource Consulting Ltd
64% of UK Subs Take
UK SVOD SERVICE COMPLEMENTARY….SO FAR
44%
of UK Broadband HH take Any SVoD Service
74% of UK Subs Take
Source: Futuresource Living With Digital Wave 156 August 2018, : Futuresource Video Insights Market Tracking
Same # as

6. | © 2018 Futuresource Consulting Ltd @Futuresourcer6 | © 2018 Futuresource Consulting Ltd
ORIGINAL CONTENT DRIVING COMPLEMENTARY SERVICE UPTAKE
52% of UK Netflix subs like or love
Two-thirds amongst 16-25’s
80% of UK Netflix subs 16-25 say Netflix Originals are
important in keeping them subscribing
Source: Futuresource Living With Digital Wave 15, August 2018
$8m cost per episode
Biggest market push since Grand Tour

7. | © 2018 Futuresource Consulting Ltd @Futuresourcer7 | © 2018 Futuresource Consulting Ltd
OTT CHANNEL AGGRAGTORS DRIVING NEXT WAVE OF MULTIPLE SVOD
Each UK SVoD Household takes ~1.7 services
Already around 2 in USA

8. | © 2018 Futuresource Consulting Ltd @Futuresourcer8 | © 2018 Futuresource Consulting Ltd
DISNEY+ TO SPEARHEAD NEXT WAVE OF DISRUPTION

9. | © 2018 Futuresource Consulting Ltd9 | © 2018 Futuresource Consulting Ltd @Futuresourcer
DIS-AGGREGATION VS RE-AGGREGATION: THE NEXT PHASE
| D2C Movement will change premium rights & exclusivity landscape
• But ROI different for each service, country etc
| Is it good for consumer?
• Another service, more cost
• What content is on what service? Universal Search & Navigation key
| Role of Pay-TV
• What are re-aggregation commercial agreements?
– Eg Pay-TV app carriage
| Content saturation………?
Does next wave tip the sector from being complementary to competitive?

10. | © 2018 Futuresource Consulting Ltd
About Futuresource
Futuresource Consulting is a specialist research and
knowledge-based consulting company with a
heritage stretching back to the 1980s.
Its insight and global market coverage are based on
informed regional expertise, ensuring its portfolio of
world-class clients is fully supported in research,
analysis, strategic planning and decision making.
| Consumer Electronics
| Print & Imaging
| Media & Entertainment
| Education Technology
| Optical Disc Manufacturing
| Broadcast Equipment
| Professional Displays
While every effort is made by Futuresource Consulting to provide accurately researched information and carefully supported conclusions and recommendations, in no event will the company or its
professionals be liable for information, analysis, advice or recommendations provided to clients, or be liable for actions and decisions taken as a result of this report.
Talk to us…
Futuresource Consulting
+44 (0) 1582 500 127
www.Futuresource-consulting.com
David Sidebottom
Principal Consultant