User:Adamjiwa

Video on Demand Overview

Video on demand is becoming a growing platform to view digital content in 2022. Video on Demand can provide film companies with more revenue after a movie release. This extra income can be added to primary sales or be used to added income to supplement loses. With digital streaming services and video on demand apps being included on newer smart tv’s, SVOD, can be used by companies to market content to viewers who do not frequent movie theaters.

Data Analysis

When technology companies, include SVOD apps on their devices, like phones, tablets, televisions, game systems, computers, this can remove an attitude obstruction for a user to view content. This technology also provides an advantage for technology companies for data analysis of viewed content from consumers. By analyzing data of what is viewed most by consumers, companies can purchase more content that is aimed for an audience, and then in-turn market products that are based on what viewer profiles are of a group of consumers who viewer a specific amount of content. This data analysis will often provide researchers valuable data that includes: what was watched, when it was watched, what they watched after watching, and even how many people watched the same video at the same time in a day, month, and even year.

Economics of SVOD

Attendance in movie theaters had declined during the 2020 COVID-19 pandemic. Worldwide in 2019, theatrical entertainment reach 11.4 billion dollars, but in 2020, it was only 2.2 billion. Due recovery efforts to increase those attendance numbers, along with the growing amount of marketing that is need to gain the attention of an audience, pinning down an exact budget for a film production can be difficult. Video on demand can have three release strategies that include: day-and-date (instantaneous release in theaters and on VOD), day-before-date (VOD before theatrical viewing), and VOD only. Production studios can make revenue on these types of releases until sales start to slow. After that, film companies can then license the content to other streaming services and temporarily make extra income like that too.

In a reflection made by 2013 Netflix Chief Content Officer, Ted Sarandos, he was quoted saying, “When we launch in a territory the BitTorrent traffic drops as the Netflix traffic grows.” This can be valuably interpreted as in that online piracy numbers drop the more that SVOD companies grow, which in turn means more revenue going back to the production companies.

Behavior Detrimental to SVOD revenue

Bibliography

Adgate, B. (2021, April 13). The Impact COVID-19 Had On The Entertainment Industry In 2020. Forbes.

Cheng, Cui, L., & Jiang, Y. (2016). CPA-VoD： Cloud and Peer-Assisted Video on Demand System for Mobile Devices. Journal of Computer Science and Technology.

Clement, Otten, C., Seifert, R., Kleinen, O., Houston, M. B., Karniouchina, E. V., & Heller, C. (2018). IDEA FORUM: the impact of subscription-based video on demand on traditional distributors' value chains and business models. Journal of Media Economics.

G  De Matos, Ferreira, P., & Smith, M. D. (2018). The Effect of Subscription Video-on-Demand on Piracy: Evidence from a Household-Level Randomized Experiment. Management Science, 64(12), 5610–5630. https://doi.org/10.1287/mnsc.2017.2875

Harris. (2021). Video on demand: what deepfakes do and how they harm. Synthese (Dordrecht), 199(5-6), 13373–13391. https://doi.org/10.1007/s11229-021-03379-y

Hilderbrand. (2010). The Art of Distribution: Video on Demand. Film Quarterly.

McKenzie, Crosby, P., Cox, J., & Collins, A. (2019). Experimental evidence on demand for “on-demand” entertainment. Journal of Economic Behavior & Organization

Mroch, C. (2020, October 30). How do Netflix movies make money? Netflix Life.Zipin, D. (2021, October 18). How Exactly Do Movies Make Money? investopedia.com.

References