It’s Official: Hollywood is So Over-the-Top
How streaming services are transforming television, film, and, let’s face it, your entire reality.
Here are a few things you should know about me: I obsessively read A.V. Club reviews. I will most likely try to glean your Twin Peaks knowledge within the first hour of idle chit-chat. And before I became the proud purveyor of The Criterion Channel, I was simply not watching enough Czechoslovakian content.
You get the point. I like television. I like film. Some would even call me a pop culture fiend. I prefer to think of myself as a fan of stories, and, dare I say it?… A budding storyteller myself.
(No, I daren’t)
All of this is to say that in recent years, there’s been something incredible happening at the intersection of product, technology, and film: OTT is rapidly emerging as king, putting a major dent in the monopoly of cable television and rattling the cages of movie distributors, all while quietly shaping our everyday habits and redefining how we consume content.
How did a few players disrupt such a massive, established industry? How did the revered, nonsense behavior of flipping through 50+ channels become obsolete in favor of Netflix and Chill? How is Lord Bezos hobnobbing with the Hollywood elite and how can I get in on this action?
Let’s get down to brass tacks.
A Changing Landscape
You’ve probably heard of OTT, or over-the-top media services. If you’re unfamiliar, here’s a quick overview: the term refers to any service which is using internet to distribute content and basically tossing decorum out the window by bypassing established channels– i.e. Big Cable, Lionsgate, Columbia Pictures, etc., etc.
So just think of Netflix, Hulu, Prime Video, and other emerging players like SlingTV and fuboTV as OTT.
Since 2014, the number of people watching content on cable has decreased at an alarming rate, causing about 15% decline in viewership. The audience for streaming channels has, in very stark contrast, increased five-fold.
In multiplexes around the country, ticket sales are pacing 7%, or $430 million, behind last year, putting summer 2019 10% below the same timeframe in 2018.
We can see there’s something happening here. These OTT services have come to collectively represent a major shift. And this shift is important. This shift is massive. This shift is disruptive.
Television’s Trash, OTT’s Treasure
So let’s take a look at the top capabilities and features that streaming services have prioritized to fill in the gaps left by cable companies:
- Choice
The generations of yore did not have much of a choice: if they wanted to understand references made by others, they had to watch some TV. And to do this, they had to sign up for cable with a provider chosen for them, something cable companies do on a geographical basis to eliminate competition.
We were locked into packages with Comcast or Time Warner or AT&T. And whaddaya know! They’ll throw in a landline for an extra $20/month! Praise baby Jesus.
With OTT services, you DO have a choice — if you’re into that sort of thing. You choose to subscribe to the content you want. You choose who accesses your subscription. You choose which platform to watch content on. And you choose exactly when to cancel.
On second thought, all this extra decision-making… I don’t know, folks. It sounds pretty terrible.
2. Personalization
Cable TV provides practically no customization, beyond “add on” packages pre-made and decided for you. OTT services have changed that. Netflix, for example, lives and breathes personalization, constantly learning browsing and watching patterns, calculating abandonment rates and attrition, compiling repeat view statistics, and collecting, churning, presenting feedback in the most creative ways.
So you’re into content with “strong female lead taking on seedy men of crime” with a side of “must-pass Bechdel test”?
You got it.
3. Usability
Remember trying to watch a Friends rerun on TBS, only to find out the TV Guide misled you because it starts at 4AM and it’s only 9PM right now? Yeahhhh. Remember turning subtitles on and noticing they appear all over the characters’ faces? Remember trying to rewind a key scene in Breaking Bad and realizing you, in fact, cannot? Remember watching that documentary where that actor appeared but you can recall neither?
Yup. Yup. And yup.
Welcome to the new age, where usability is front and center. In OTT channels, clear top-level content organization lets the user discover and continue content. The subtitles allow audiences to choose the size and the placement. Rewinding and fast-forwarding standardization to a few seconds has activated a deeper connection with the content. Filmographies and biographies are readily accessible through the screen, ensuring the user does not exit the content to access this information.
These features are now something we expect as the audience.We’re more engaged. We’re more loyal. And this leads us to discuss, defend, and refer these channels in everyday conversations.
4. Affordability
According to USA Today, the average cable TV subscriber spends $85-$100 per month. In comparison, Netflix membership hovers around $12.99 per month, Hulu’s ranges from $5.99-$11.99 per month, and Prime Video’s membership is $12.99 per month. Even if you add SlingTV’s membership, which $25 per month, the average total cost comes out to be $62 on a monthly basis.
For those committed to cord-cutting, reducing cognitive overload, and increasing intentionality behind what they choose to watch, it really just comes down to math.
5. Access and Discovery
Okay, but let’s be real. The content itself on streaming platforms is really what makes OTT services what they are: unique, bold, and vast. Which is exactly why the features that allow us to discover and access these stories stand out even more.
Netflix’s search is one of my favorites. It surfaces results matching the user’s query, yes obvi, but also takes endless scroll to the next level by showing related, trending, relevant, and suggested content.
And more content.
And even more content.
Additionally, access to content itself has become easier than ever. Content from Norway, Mexico, Germany, Israel, India, you name it! All of it is readily available without the hassles of ordering foreign-language packages or adding plug-ins or finding compatible video players.
6. Diversity
This deserves a major shoutout. Streaming channel content has become so much more representative of the real world. Women and people of color, in particular, stand out with the success of shows like The Mindy Project, The Marvelous Mrs. Maisel, and Homecoming. While it’s still a work in progress in the industry, streaming networks have been very mindful about accurately depicting race, class, and gender compared to content on traditional TV.
The Future, AKA Hollywood Has the Hots for Streaming
Audience expectations and behavior has changed greatly since the advent of OTT services on television, enabling and empowering Americans to enjoy entertainment (i.e. order Seamless and binge-watch) in the comfort of their own homes. This — combined with the fact that major movie stars like Meryl Streep have further blurred the lines between TV and film — has accelerated the rise of streaming in Tinseltown.
In 2017, Manchester by the Sea, distributed by Amazon Studios, became the first streaming-backed picture to win the Best Picture. In 2018, Netflix received eight Oscar nominations. And this year, two Netflix powerhouses are already out-performing other selections in various film festivals: Martin Scorsese’s The Irishman and Noah Baumbach’s Marriage Story.
“This is the biggest shift in the content business in the history of Hollywood” — Jason Blum, Film Producer.
So can the traditional “going to the movies” experience die? Yes. Will it? Most likely not. According to Box Office Mojo, while revenue for film opening weekends has been lukewarm in recent years, there’s been a rise in ticket sales for major blockbusters, like Avengers: Infinity War or Wonder Woman. Grand, large-than-life experiences are still drawing people off their couches, forcing them to park their cars, stand in line, and get their wallets out. Ticket sales are proving that the content category is the ultimate decider for theatrical urgency. So while a new indie comedy may be suitable for watching in your living room, Star Wars, on the other hand, may not be a feasible candidate for a direct-to-OTT release.
Regardless of how you feel, for the time being, it looks like streaming will have to co-exist with other traditional players in Hollywood. While it will undoubtedly be a tense and crowded space, for the audience, however, this will only result in more choices and more fulfilling entertainment experiences. Which, long-term, is definitely a good thing.
Are ya with me, Hollywood executives?!
