In a world full of a sedentary lifestyle, online streaming platform has become the most

convenient way of promoting easy to access entertainment. These online streaming services
aim to bring quality content into the living rooms of households by tapping into laptops,
tablets, and smartphones. Unlike the traditional TV industry, the online platforms provide on-
demand content, intriguing original content and utilize the user data to serve the viewers
better thus allowing the customers consume the content in the way they prefer.
Since online streaming platforms have the entire seasons of popular entertainment content,it
promotes a vibe of binge-watching which is contrast to the usual TV broadcast’s once-a-week
model.To counter this,many TV networks are trying to adapt this model at the cost of
sacrificing the advertisement revenue.
Another feature to add in its armory is to use data aggressively for providing personalized
user experience.Based on the data,the platform recommends the viewer the content which
might appeal them.The data is also to anticipate what kind of exclusive content the company
should create as per the demand and interest.This model has led companies to generate many
hits in a relatively lesser span.
The impact on the TV broadcasters was quite clear.Starting from 2013, the traditional cable
TV has been experiencing a loss in subscribers and the loss continued to widen in the
subsequent years to date. Thus, the online streaming industry is proving to be the focal point
of the disruption of the traditional TV industry forcing them to change their business model
in order to prevent the unbundling of cable.

A recent survey conducted by the Indian arm of market researcher YouGov and Mint shows
that the share of millennials watching online entertainment (48%) exceeds the share of those
watching cable TV (43%). The reason to stay away from traditional TV was the lack of
programming and the inconvenience of appointment viewing.
In order to promote their streaming services, respective companies are more inclined towards
producing their own original content. The reason being it not only helps the service platforms
to fill out the library but also differentiates itself from the traditional television entertainment
industry. This entices the viewers to subscribe to the services which in turn can lead to
customer retention.The original content also ensures that the series or movie franchise not
only attracts viewers but also leaves scope for prequels,spinoffs and cross-promoted content
opportunities in the years to come.
For instance, Netflix launched about 20 years ago and it began threatening the television and
movie business. Netflix boosted its spending from $9bn in 2017 to $12bn in 2018 and an
estimated $15bn in 2019 in order to promote originals. Also, based upon the rating of the
particular TV show or a movie, viewers are enticed to watch more recommended content
which is original and restricted to that particular platform, thus increasing Netflix’s revenue.

Thirty-nine percent of all U.S. consumers said Netflix offers the “best original
programming” among subscription-video on demand services, according to a
recent Morgan Stanley survey. The company is set to house around 1,000 total
originals by the end of 2018, and 85 percent of its $8 billion content budget is being
funneled into original programming. 
Producing original content generally requires more investments upfront which turns out to be
riskier than seeking licensing from some other studio. The investment benefits in the long run
as it doesn’t require renegotiation and yearly subscription with third-party studios every few
years. However,these platforms have figured out a way to deal with this problem.Also,when
some online service produces its own originals,it has the entire control over the content,
meaning it owns exclusive rights to the content globally.Besides,the intellectual property can
be used for licensing merchandise and toys or even tourist attractions,for instance.
In order to catch up with the online streaming services, the large media TV producers are
reconfiguring their part of the operations as a B2C business model. Also,the traditional media
producers are feeling the urgency to craft exclusive content which will pull users to the
traditional TV model than the streaming platforms. It’s no surprise that Disney,the world’s
biggest media company,is leading the race among Hollywood’s old guard to catch up with
these streaming platforms.