TORONTO — If you thought that the rise of Netflix, Amazon Prime Video, Hulu et al was all driven by younger, cord-cutting consumers, think again.
SVODs are now saturated. And that means they are having to fight for new pockets of unconverted subscribers – older, much younger and everywhere in between.
In this video interview with Beet.TV, Ampere Analysis research director Guy Bisson says: “If we think back just five years, if you were Netflix, you were focused on content that was attractive to that younger demographic, that was your core audience… we’re talking about sci-fi, we’re talking about comedy
“Now one of their biggest engines for growth … is no longer 18-to-34-year-olds, but is 50- and 60-year-olds.That content strategy has to evolve.”
So Bisson, whose firm analyses the future of TV markets, says SVOD operators are extending beyond the original core audience groups, beginning to offer reality, lifestyle and kids content, for example.
As they do so, success could be a differentiator in any given area – but they also borrow from a playbook used by linear TV operators before them.
Two decades ago, as multi-channel TV exploded, some broadcasters peeled off theme-specific channels, unbundling their traditional aggregated fare. Bisson sees SVODs are main-line broadcasters alike now needing to balance these themes within their single, holistic platform brands.
“In a way, commercial broadcasters are at an advantage here because they have already multiple brands (that) tend to focus in on a particular demographic,” he says.
“In a way, Netflix has a bigger challenge. They’ve got the challenge of directing older people to the content that is going to interest them, and younger people to the young stuff.”