Despite the impression created by SVOD and FAST channels that people yearn for the days of cable, empirical analysis suggests otherwise. By the end of 2023, Nielsen's Gauge Report stated that, for the first time ever, there were more viewers utilizing OTT methods of engagement than those using traditional services such as cable. The number of OTT service users in the U.S. in 2023 is expected to exceed 144.1 million, marking a 12.5% growth from the previous year. Conversely, traditional pay-TV (cable, satellite) viewers will decline by 10.2% to 12.1 million. It is evident that OTT viewership is on the rise, but we must acknowledge that it is evolving in ways reminiscent of classic cable approaches to media consumption.
The issue lies in companies such as Amazon Prime Studios, which either fail to recognize this trend or are struggling to adapt to it effectively. Even companies moving in the direction of FAST TV are not fully grasping its nuances.
DAD TV and Amazon’s Confusion
Today, Amazon Prime Studios finds itself in a unique position. It must establish dominance in a market it currently occupies comfortably. But will this dominance endure? Not if they remain on their current trajectory.
Amazon Prime is swimming against the tide by focusing on non-Prestige TV. Dad TV, including shows like Reacher, The Boys, Terminal List, and others centered around classic, testosterone-fueled male-dominated narratives, resonates strongly with the average male audience. How well does this category perform on Amazon? Nielsen reported that the second season of Reacher performed exceptionally well, becoming one of Amazon’s biggest shows. The first three episodes of its second season, released in December 2023, garnered 1.69 billion streaming minutes, making it Prime’s most watched title of 2023 within just two days.
Series such as Reacher, Jack Ryan, and The Boys maintain consistent viewership momentum throughout their seasons year after year. However, the same cannot be said for Prime series like Lord Of The Rings: The Rings of Power, where only 37% of viewers who started the series watched it through to the end. While the reasons behind this issue merit another article, the crucial point is that Dad TV, despite its lower production costs, continues to gain momentum.
The issue lies in Amazon's failure to seize the golden opportunity of transforming multiple FAST channels into DAD TV-oriented channels, a move that could lead to exponential growth. What could be a better concept than offering a steady stream of content tailored for men who prefer effortless entertainment? However, Amazon seems to overlook this potential market for dad TV. Instead, they prioritize Prestige TV shows like Deadloch, Swarm, and Dead Ringers. While these Prestige TV offerings are undoubtedly high-quality content, our focus should be on amplifying the success of current hits.
For instance, the viewership for Swarm pales in comparison to that of Reacher, yet Amazon continues to prioritize the former over the latter. Paramount+ finds itself in a similar predicament, failing to capitalize on FAST channels dedicated to Taylor Sheridan's content monopoly.
SVOD Versus FAST
Free ad-supported television (FAST) appears to be a promising direction for the future of television distribution. However, recent developments suggest a shift toward a model that resembles FAST on the surface but operates more like SVOD in practice.
For example, Disney's announcement of new linear-like TV channels featuring Star Wars and Marvel shows may seem like a move toward FAST. However, these channels are expected to come with a subscription fee, making them more akin to SVOD services. While they offer pre-programmed channels with curated content, they lack the fundamental element of being free.
Criterion Collection also launched "Criterion 24/7" on their SVOD platform Criterion Channel, which seems to be a step away from FAST while still emphasizing continuous curated television, reminiscent of traditional broadcasting.
The problem arises from the absence of the "F" in this equation. The appeal of FAST lies in its accessibility and cost-free nature. Services like Roku and Pluto TV offer free content easily accessible to viewers. However, once a subscription fee is introduced, viewers may feel a stronger inclination to take control of their viewing choices, undermining the passive viewing experience offered by FAST. There is a very good chance that, subconsciously, the viewer will state these exact words in their head, “You just paid $15 dollars for this subscription to Disney.. YOU chose what you want to watch and do not let it tell YOU what to choose.”
When there's a price tag involved, individuals tend to prioritize their preferences, potentially disrupting the curated experience that FAST-ish SVOD channels aim to provide. The convergence of SVOD and FAST could pose challenges as viewers navigate between the desire for control and the allure of convenience.
Comments