Exclusive streaming deals are out, and the linear model of licensing is back. At least so it seems! As what some are calling the ‘blank check’ era of streaming draws to its definitive close, more and more studios are realizing the value of what they already have, as well as the lure of shiny new properties. Our local entertainment lawyer Los Angeles, Blake & Wang P.A.’s Brandon Blake, looks at this thorny new issue in more depth.
Licensing: A Model to Keep Revenue Flowing
The issue of ‘lost shows’- shows that run on an exclusive streaming platform only to disappear from all accessibility after that initial run- is one that has been raised many times as the streaming era passes its infancy and establishes itself. Not only does this have knock-on effects on the preservation of these shows, it is also a source of frustration for viewers. Additionally, this sometimes ruthless removal of ‘big’ content has led to a public perception against streaming. Although not accurate- of the seven biggest streamers using SVOD models, only Amazon Prime Video has had its catalog shrink in the last 2 years- there is still a perception that it is being done to create ‘artificial scarcity’ and drive up subscription prices. 2023’s experience seems to have backed this, with acquired titles dominating the streaming Top 10 lists. Let’s also not lose sight of the fact that Netflix built its reputation on the back of being ‘the place to find shows traditional networks weren’t running’.
Balance Needed
However, of those acquired titles, there is definitely some ‘top loading’. Only 1,000 of the best-performing titles made up 70% of the streaming view time. On the flip side, niche streamers like Roku and Pluto have done well in buying up more obscure programming (that can be licensed cheaply) and selling ad inventory to show it. In many ways, it works- viewers want something, advertisers have the security of a ‘known’ item, and everyone wins.
So, as always, it isn’t an easy answer. Simply loading up libraries with any old title isn’t a shortcut to more views and revenue. But as streamers start to warm up to the idea of sharing IPs across platforms, there’s a lucrative new niche to be explored.
Film and Television 