Streaming platforms expand content libraries with new acquisitions

New Delhi: One of the reasons why streaming platforms outfoxed cable networks was their dynamism. They were offering flexibility both in terms of usage as well as content. Streaming platforms have remained dynamic through regular content acquisition, which has helped them engage with audiences regularly. 

Unlike a poker app, for instance, streaming platforms don’t have a focal point for their audience. A poker app can count on people keeping themselves busy with a poker game as they build their content around it. However, when the business model changes to streaming, there is no substitute for fresh content. To make sure that they have enough fresh content to serve their audience, streaming platforms are fast resorting to regular content acquisition.

Content Acquisition: The New Pivot for Streaming Platforms

The need for fresh content was always there, even during the traditional television and cable era. While the broadcaster would follow a predetermined programme schedule, new content needed to be churned. But the advent of streaming platforms has turned the scenario on its head. 

The introduction of on-demand libraries meant that now streaming platforms are more similar to YouTube than they are to a cable TV channel. This has revolutionised the way audiences consume content and put immense pressure on content acquisition managers due to the sudden burst in demand.

The importance of content acquisition can be seen both in the acquisition deals as well as the subsequent success. Streaming platforms are enjoying massive viewership for successful content. The successful show Stranger Things enjoyed 140 million views in its fourth season. Netflix is spending $30 million on each of the episodes!

Content acquisition in streaming platforms today considers demand, library expansion needs, and exclusivity as the primary considerations for their commercial success. Netflix had paid $450 million for the rights to two sequels to the mystery movie Knives Out. Peacock shelled out $400 million to resurrect the classic movie The Exorcist back to life. Six new seasons and rights for 14 movies of South Park were valued at $900 million. It is safe to say that content acquisition has reached inconceivable heights as a money spinner in recent years.

How Content Acquisition is Panning Out?

Streaming platforms have taken a few distinct stances in the content acquisition playground. On one side we have the major buyers and producers like Netflix, Peacock, Amazon and Disney+. These platforms boast of hundreds of millions of paid subscribers. Netflix has a $17 billion budget for content acquisition. While the platform has spent a fortune on the acquisition of classic hits, it plans to concentrate on developing originals this year.

Coming to classic hits like Friends, Seinfeld, and The Office, they continue to have a large following. Acquiring rights to these nostalgia hits is another assured way of gaining viewership for streaming platforms. From Malgudi Days on Amazon Prime to Star Wars on Disney+, getting rights to these proven hits has been a reliable solution for these platforms.

For ecosystem-based streaming platforms, content acquisition has a different meaning altogether. We are talking about giants like Apple, Meta and Amazon. For them, viewership is a bonus, but the real booty lies in the success of their ecosystem. Apple as a streaming service keeps an eye on their mobile device usage by subscribers. Meta looks at content as a means to increase customer interaction on their platform. Similarly, Amazon looks for benefits trickling down to its transactional ecosystem.

It is interesting to note that customer engagement is getting reflected not only in terms of viewership numbers and subscriptions. Customer engagement in the broader ecosystem is also important when it comes to ecosystem-based streaming services. 

Content Acquisition in Gaming

When it comes to gaming titles, gaming companies have been actively involved in content acquisition as well. However, there has been a domination of merger and acquisition strategies under the guise of content acquisition. 

In recent years, we have seen the mega acquisition of Activision Blizzard by Microsoft for $68.7 billion. Around the same time, Sony acquired Bungie and Take-Two Interactive took over Zynga of Farmville fame. In the past, Microsoft has been active in the acquisition business, taking over ZeniMax and Mojang Studios.

Acquisition in the gaming industry leads to an instant expansion in the number of game titles offered to gamers. No wonder it is a popular mode to expand content in the gaming industry. In the last few months, we have seen the acquisition of Sociable Soccer by Sporty Group, Daybreak acquiring Singularity 6, and Capcom acquiring a controlling stake in Minimum Studios.

Closer home, Indian gaming giant Gameskraft offers multiple gaming options to gamers, including the popular poker game platform Pocket52 and rummy app RummyCulture.

Content with Expansion

Whether it is entertainment or gaming, content acquisition is proving to be the key to expansion for streaming platforms. As big players try to consolidate, we don’t expect this trend to slow down any time soon.