The Media and Entertainment (M&E) industry is complex, and many factors can impact content's ability to find an audience. Writing and producing an engaging story are only two elements of a profitable title release.
Here are four more factors that affect the worldwide success of a title.
1. Competition and fragmentation: With more OTT video services entering the market and competing for subscribers, consumers have more choices and opportunities for confusion. Streaming services offer original content exclusively on their platforms or license it to competitors to increase market share. Sometimes they do both, leading to content fragmentation and consumer confusion. This is evident in the current dispute between Warner Brothers Discovery and Paramount Global over licensing the animated series "South Park," which is available on both HBOMax and Paramount+. Not only can fragmentation negatively impact platform revenues, but it also risks reducing consumer satisfaction and increasing churn rates.
2. Regulation and compliance: Video content crossing borders is subject to different legal and cultural norms. Providers must comply with various regulations regarding data privacy, content licensing, taxation, censorship, and consumer protection. For example, the implementation of new privacy laws in several states, such as Virginia, California, Colorado, Connecticut, and Utah, grants consumers more rights and control over their data and requires video content providers to comply with strict rules on data collection, processing, sharing, and security.
The enforcement of existing online platform regulations, such as Section 230 of the Communications Decency Act, which protects them from liability for user-generated content, encounters challenges and criticisms from lawmakers and advocates who want to hold platforms more accountable for harmful or illegal content. Emerging technologies and trends likely pose additional regulatory challenges or opportunities. Creators can protect their rights and interests by observing how these regulations are discussed or implemented.
3. Quality and cost: As consumer expectations for video quality increase, so do the challenges of delivering high-caliber content via different networks and devices. Who hasn't switched channels because the title they're watching isn't sharp and clear? Resolution matters. Video content providers should invest in technology and infrastructure supporting 4K, HDR, VR, and other formats while managing bandwidth costs and latency issues. Balancing the cost and quality of producing video content that works on any device, such as special effects, animation, or live-action, can be a challenge, especially for productions with limited budgets. Faced with trade-offs between additional spending to create high-quality content or reducing production costs, creators may be required to make changes or edits to obtain approval for releasing their content internationally.
4. Innovation and engagement: As video content evolves with new technologies such as AI, AR/VR, blockchain, interactivity, and filters, providers must keep pace with changing consumer preferences and behaviors. Consumers have demonstrated a willingness to try new ways of engaging with content, and it will become crucial for creators and platforms to innovate or risk falling behind. The challenge is offering technologies ready for mass consumption yet not posing a risk to the content or the brand.
For example, some streaming services allow viewers to interact directly with content and influence storylines. For several years, Netflix has provided interactive shows with mixed market results, but development continues. TikTok recently announced an AI-powered "beauty filter" called "Bold Glamour," which changes people's appearance in real-time, raising ethical and social concerns, even among the creative community . This filter is not unlike the services offered by Flawless , which uses facial recognition to create AI-generated, lip-synced visual dubs in videos. Flawless also raises similar security concerns .
Good stories are the heart of media and entertainment, and they rightfully deserve much care, attention, and professionalism. But other factors that can and do contribute to market success are often overlooked or downplayed. The coming months and years will tell which methods and tools help introduce stories to more extensive and diverse markets. Many strategies attract viewers, but care must be taken to ensure that the benefits outweigh the risks. Sometimes discretion is the better part of valor.
