Ken Auletta: The Future of Online Original Content | Big Think

TL;DR

Netflix, Amazon, YouTube offer original content with different subscription models impacting traditional TV.

Transcript

Amazon, YouTube and Netflix have three different models. They do original content but they do it in a different way. In Netflix's case most of their content is not original. Only roughly two percent of their budget is originals but they're increasingly spending more money. House of Cards they made 100 million dollar commitment for two seasons but n... Read More

Key Insights

• 🛩️ Netflix invests heavily in original content, with only a small portion of its budget allocated to originals.
• 🐕‍🦺 Amazon's Prime membership includes video content as a complementary service to attract customers.
• 🛀 YouTube is transitioning from user-generated content to producing more professional shows.
• 📺 The shift towards online streaming poses challenges for advertising-supported television networks.
• 🫠 Consumers are increasingly accustomed to ad-free viewing experiences on streaming platforms.
• 🚚 The future of television consumption is predicted to heavily rely on internet-delivered content.
• 🫵 Streaming services like Netflix, Amazon, and YouTube are changing viewer habits with binge-watching and personalized content.

Questions & Answers

Q: How do Netflix, Amazon, and YouTube differ in their approach to original content?

Netflix focuses on a subscription model while Amazon bundles videos with Prime, and YouTube creates professional content.

Q: How are streaming services impacting traditional television networks and the advertising model?

Streaming services' ad-free model poses challenges for traditional TV networks relying on advertising revenue.

Q: What predictions has Reed Hastings made regarding the future of television consumption?

Reed Hastings predicts that half of television viewing will shift to online platforms within a few years, emphasizing personalized viewing experiences.

Q: How do streaming services like Netflix subsidize their offerings to attract customers?

Netflix and Amazon offer low-cost subscriptions and bundled services to draw customers into their ecosystems, building customer loyalty.

Summary & Key Takeaways

• Netflix invests heavily in original content, while Amazon bundles videos with Prime membership.

• YouTube transitions to professional content, competing with traditional TV networks.

• Streaming services disrupt advertising-supported television models, posing challenges for the TV industry.