i3 - May/June 2019 - 42

Business

By Gary Arlen

C S PAC E

eyond the sheer glut of new content, about 500 scripted video
programs and an estimated 750 unscripted series, is the overwhelming challenge of distribution. Evolving digital platforms and the tumultuous upheaval at conventional TV networks
(especially the cable/satellite channels) are making this year's upfronts
and Digital Content NewFronts ad sales pitches especially hectic.

at about 9% o
f

p
he

ge of origi
enta
nal
c
r
e
s

T
MAY/JUNE 2019

Original
Content Reigns

Facebook Watch and a new
"video incubator" called
Facebook Match exemplify
the online sector's aggressive
move into original programming. Facebook is funding new
shows from about a dozen small
publishers and networks. Under an
innovative intellectual property
arrangement, the producers will retain
the rights to distribute the shows on other
platforms after the Facebook license expires.
Facebook is working with Condé Nast,
Complex Networks and BuzzFeed to create
original video programs for Facebook Watch.
Facebook is hoping to spur viewer engagement on Facebook Groups and Watch Party.
An ambitious new player in the short-form
creative game is Quibi, a mobile-first platform that plans to offer 100 original segments per week when it debuts in April
2020. Quibi is headed by Hollywood veteran
(and former DreamWorks CEO) Jeffrey
Katzenberg and former HP CEO Meg
Whitman. They recently revealed that
Quibi's initial line-up will include a reality
series from Jennifer Lopez's production com-

past 5 year
s.

Traditional studios like Fox, Sony and
WarnerMedia are finding new roles in
creating content for online platforms
especially as the corporate structures
change after mergers that brought the
old Time-Warner networks into the
AT&T family and Fox into Disney. At
the same time, native digital platforms
such as Netflix, Amazon Prime,
Facebook, Hulu and Vudu are expanding their original content inventories as
viewers migrate from linear to ondemand preferences.
42

ady

he
rt

ta
to

s te

er
i

FX Networks Research shows about
one-third of original series now debut on
online platforms, slightly exceeding productions created for broadcast or basic
cable TV channels. The percentage
of original series made for pay
ay cable has
p
r
o
cable (such as HBO, Showtime
f
rem
de
a
or Starz) has remained steady
ain
m
s
at about nine percent of total
e
production for the past five
d
u
o
c
r
t
years, according to FX.
ion
lp

pany and two short-form daily newscasts.
Tubi, an advertising-supported streaming venture, is taking another approach. It
recently licensed 400 movies and TV episodes from NBCUniversal, including nostalgic favorites such as The Incredible
Hulk, Battlestar Galactica and The Bionic
Woman. Tubi, which characterizes itself as
a "free Netflix alternative," plans to spend
more than $100 million to license content
this year, according to Variety.
Netflix, which is both a producer and
distributor of original content, is accelerating its role in the animation category. It
has opened an in-house animation studio
and plans to acquire other content via
deals with three Japanese anime studios
plus the estate of Roald Dahl. Netflix has
also commissioned an original eight-episode anime series Gods & Heroes, based
on Greek mythology.
Traditional studios and networks also
are revamping their operations. Sony
Pictures Television has a new production unit to produce low-cost series,
using the formula of the indie film
industry. The division plans to shoot in
less expensive locations and produce
multiple episodes simultaneously to cut
costs further. Sony can also distribute
the shows through its own global channels, such as AXN (in Europe Asia and
Latin America) as well as license them
to U.S. cable and streaming platforms.
Fox Searchlight, the specialty division
of 21st Century Fox, launched its own
TV unit last year, and WarnerMedia has
a similar operation called Horizon
Television that has produced scripted
and reality shows such as Fuller House
for Netflix.
This increasing competition is triggering intense efforts to attract audiences.
HBO has a couple dozen projects underway, ranging from a Game of Thrones spinoff to a high-profile miniseries about
Catherine the Great starring Helen
Mirren, another indicator of the global
search for quality programming.
I T I S I N N O VAT I O N

Ian McKinnell/Getty Images

Where Do New Shows Come From?

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