How are we all doing right now? Are we sitting comfortably, cosy by the fire? Perhaps you’re one of the five UK homes right now tempted to sign up for a streaming service this lockdown and are binging your way through the Netflix catalogue?
As predicted in our previous blog, streaming has soared and is reshaping how audiences engage with content. With a sweet-shops worth of platforms and content to choose from, we’re spoiled for entertainment in these trying times.
Additionally, though stuck at home, we’re certainly not alone. SVoD (subscription video on demand) platforms such as Netflix have added the ability to stream together so we can watch content at the exact time, no matter where we are.
With an almost infinite amount of VoD platforms on our TVs, plus the ability to watch in unison, we ask the question, will we be returning to the cinema when this all blows over? If not, where’s the best place to advertise?
You, Me and VoD
In the three months leading up to April, 21% of British households signed up for an SVoD service. Alongside this, according to cloud video service, Graybo, the monthly spend on streaming has increased to a mountainous £100 million, and it’s still climbing.
Interestingly, 60% of UK audiences aged 50-64 are also paying for streaming subscriptions, which is the closest it’s ever been to the PVoD consumption habits of younger age groups. It looks like everyone is Netflix and chilling right now.
Speaking of Netflix, it could potentially lose its streak as the king of the stream soon. Just as we predicted, Disney+ is ascending through the ranks, making up 52% of all new SVoD subscriptions across February, March and April. What’s more, almost half of all new Disney+ members signed up for an annual subscription which costs £49.99.
As we mentioned in our first VoD blog, the race to win the number one spot will only speed up as more content comes our way. Market-leading analytics firm, Ampere Analysis, states in their UK VoD market report that “competition is growing, with the volume of content on the largest SVoD services tripling in the past three years…Content providers will progressively choose to keep premium content in-house, on their own consumer-facing VoD services.”
In our last blog, we discussed how PVoD also opens up a playground of marketing opportunities. Channel 4 launched “Dynamic TV”, an innovative ad system that allows brands to view first-party data from Channel 4 and create ads based on factors such as location, weather and time of day.
With all these options at hand, it raises the question, will we see a return to the cinema after lockdown?
Let’s All Go to the Lobby!
The truth is, it’s safer to stay inside than go to the cinema. According to research conducted by Deloitte, 51% of millennials with children stated they rented a minimum of one PVoD film whilst in lockdown.
So with cinemas shutdown, how have movie marketers coped with working on the smaller screen? Quite well, actually!
As we mentioned, PVoD allows for exclusivity and content control; if your film is shiny and new, we expect audiences to pay a higher price. That was the case for Dreamworks Animations, “Trolls World Tour”, which Universal released as a 48-hour rental on VoD platforms for $19.99. The film became a homebound blockbuster, earning more in its first three weeks than its 2016 predecessor. Have people made a permanent swap to the home cinema? Not quite. Though VoD does offer a variety of unique opportunities for entertainment to flourish, the cinema still has its perks.
Cinema and blockbusters go together like sweet and salted; they’re an event people want to experience on an IMAX screen with friends and family. Films with large budgets typically take a sizeable cut of box office revenue, with the bonus of an international release. Comparatively, due to global VPN restrictions, PVoD platforms can’t cast as wide a net they’d like for their digital audience.
Not all film distributors are ready to take on the streaming lifestyle. James Bond’s new adventure, “No Time To Die”, has been delayed from April to November due to growing concerns over the pandemic. Though this could be for the safety concerns of movie-goers, it’s more likely due to them missing out on those big blockbuster bucks.
Brand New Avenues
Each avenue has its ups and downs, making it even tougher to decide on a distribution strategy. Will the rise of PVoD encourage studios to reevaluate their plans? We think it will!
We predict to see cinema and streaming services merge. Though the cinema continues to help marketers rake in the international finances – exclusive, higher-priced rentals are too good an opportunity to pass up.
These strategies already look to become a reality. Disney recently announced the live-action remake of Mulan will only be available to stream via Disney+, a movie anticipated to be huge at the cinema.
As always, we’ll keep you posted with any further insights into the movie marketing world. Until then, if you’d like some help increasing film sales or want to get your film screening as a VOD advert, contact our cine-marketers now.
