Wednesday, January 23, 2013

Original Content Growth To Gain Distribution

The content vs. distribution scenario is a bit of a chicken and the egg discussion.  Each is symbiotically attached to the other and rely complete on the other.  So to ask the question, which matters more, becomes an endless debate.  In a cable operators' world, exclusive programming content has been key in trying to differentiate itself from overbuilders and other competitors.  And regional sports networks have been channel that  has been used aggressively in that fight.  And in the world of market share, networks fight among them selves for programming that gets better ratings than another.  In the aggregate, cable has taken share from broadcast because of an increasing reliance on original programming.

So the next fight for share is between cable and broadband.  The concern of cord cutting by cable operators is because consumers are seeking their programming content outside their distribution path.  Like cable did to broadcast, the web may take share from cable.  So as we watch history continue to repeat itself, the push for original content is coming from folks like Netflix, Hulu, and now Amazon.  "The company recently acquired the rights to Zombieland, the 2009 horror comedy that featured Jesse Eisenberg, Emma Stone, and Woody Harrelson." The more compelling, the more interesting, the more desirable, the more likely this strategy will work again for broadband distribution.  Market share will again shift down the pipeline as consumers sense a better "value" for content from these online providers.  All distribution entities will continue to survive, but space is being taken by streaming distribution in this ever changing landscape.