Apple, Disney, and Facebook to invest big in digital streaming

Top companies have invested billions in creating original content for video streaming online. A big shake-up in the digital streaming space is bound to happen. And as advertisers are left with multiple options, networks are pushed even harder in producing original content.

Apple, Disney, and Facebook announced plans on investing billions of dollars on digital streaming. Both Apple and Facebook are preparing to create original TV content, made for digital. And it looks like they’re pretty serious — Apple has already hired two executives originally from Sony Corp. to spearhead its new project. This new content may be made available only through a subscription channel, most likely in line with their music streaming program.

Disney, on the other hand, has been creating original content for years and has recently announced plans on building their own streaming website. In effect, they will be pulling out all their Pixar and Disney movies and shows from Netflix, ending the 3-year license they had with the company. This shift to a direct-to-consumer digital distribution is said to take effect by the year 2019 and is a serious, albeit late, move by Disney to solidify their presence in the digital space.

How it all started?

Although HBO Now was the first streaming service launched in 2015, it was Netflix and Amazon that were the top contenders of streaming original TV content made for digital. Among their most popular digital releases are Netflix’s “Stranger Things” and Amazon’s “Transparent,” both of which have received critical acclaim and a cult following all over the world.

As more and more networks are expected to dive into the game, the competition in the streaming space may become more saturated than ever, and the challenge remains for companies to come up with game-changing content.

Be original.

It’s not enough to just open a digital streaming site as there’s little room left to claim a strong market position. With recent technological improvements, it has become easier and cheaper to distribute video. Likewise, content has already been made available on various online platforms. With that, consumers will have an endless number of streaming options to choose from. However, these services must offer something new to gain customer’s loyalty.

The rise of original content seems to be the solution to this. By creating exclusive quality content that can only be accessed through your own streaming website, consumers who are interested in that specific show or movie will find themselves subscribing solely to your service.

Disney has a great potential in owning this as they already have years of experience and a steady fan base of their shows and movies. Perhaps the only challenge is how they can transcribe this into their new streaming service, coming up with a much more innovative user experience through the use of new technology such as virtual reality.

On the other hand, Facebook and Apple may have to increase their efforts in mastering creative video development. With a high budget, they may be able to hire top talent to produce and create their videos, giving them a big chance of making it big.

What does it mean for advertisers?

There are over 100 million Netflix subscribers. And the possibility of reaching so many people in one place is really overwhelming, yet advertisers need to become mindful of the specific audience they wish to reach.

With plenty of established companies trying to break into the digital streaming space, advertisers have more options on which platform to work with. Soon, advertisers have the liberty to choose where to place ads, as each streaming site would definitely have its own set demographics based on the type of material they put out.

Disney would definitely attract a younger audience, whereas Apple and Facebook can reach the older millennials and yuppies. With these big media giants entering the digital streaming space, competition is tighter than ever, and advertisers should keep their eyes open for the best platform to reach their audiences and generate leads.




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