Niche OTT services; stickier than Netflix

Today Netflix is OTT’s primary channel for premium content. But it has always realised that if content owners (HBO, Disney, Warner, BBC & ITV etc.) take back ownership of their content and go direct to the consumer its days could be numbered.

That’s why original programme commissioning is so important to Netflix; capturing a customer at a time when you own the majority of the online (OTT) consumer base. Whilst this will ensure Netflix’s long-term success, it is the rise of niche content services that may yet stand the test of time.

This is because if you own F1, the Tour de France, world cups events, music festivals, or you’re a celebrity chef, music or sports artist with a following, and you can build a sustainable community offering that extends beyond the song, the event or the show, then you are creating something sticky.

Netflix’s problem is the Pay TV conundrum; we can always change allegiance if we can get the content elsewhere, but lifestyle communities that own their own content leave you with little choice – if you’re into Man U, F1, Ed Sheeran and it’s the only place to get a proper fix then there is only one destination and leaving is not so easy.

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