The world of content is at a crossroads, stuck between the old cable model and on-demand Web TV. Unfortunately, we're going to be stuck here for quite a while, and introducing original series on Netflix and Hulu is not going to drive the industry forward.
Netflix and Hulu have each started dipping their virtual toes in the original series puddle, or whatever image works for you. Hulu, in fact, just announced plans for four more original series, which will bring its total to seven.
Trailer for Battleground, an original series on Hulu:
In many ways, this is an innovative approach to serving content online. In many ways, it was smart of Netflix not just to test out original content, but also to revive Arrested Development, which got its cult following from good old television. But one thing is clear: Original series exclusive to individual online channels will not be the thing to push us beyond this content crossroads, nor to bring in the revenue Netflix and Hulu need to thrive. So I question whether investing in creating content is, then, a waste of time and resources.
Do original content series ever work? Of course. HBO and Showtime, for example, have megahits exclusive to their own channels. But online content destinations and premium cable channels are totally different animals. Even if original content is the future for Netflix and Hulu, it's not the reality now.
Right now, people are going to channels like Netflix and Hulu for instant access to specific content. So while creating new series is all well and good, to actually serve their consumers' wants, these companies have to focus on playing nice with content owners to acquire more licensing deals and break down more barriers between consumers and the movies and shows they want to watch with minimal hassle.
Further, by investing in new content, Netflix and Hulu are only creating a marketing challenge for themselves. Outside of those of us reading tech blogs, the only people receiving word about these new series are those already using Netflix and Hulu. Marketing to the users they already have isn't going to lift subscriber or revenue numbers. Hulu Plus has just 2 million subscribers, and according to comScore, Hulu earned $420 million in revenue in 2011. That's not enough to sustain a video hosting company, and adding seven new, exclusive series won't help.
Above all, perhaps, by creating original series exclusive to their own channels, Netflix and Hulu are just perpetuating one of the main problems holding Web TV back from catching on: Consumers don't want to fragment their viewing experience across multiple services. Consumers, for the most part, are not going to pay for cable, Netflix, and Hulu. Until we reach the inevitable era of seamless viewing that doesn't tie users to one site or technology or another, consumers are going to devote their attention and money to the service that provides the most content they want. Creating original series that most people will never have heard of is not going to change that.
Something @jabailo said in the very first comment "I'll make the tickets" stuck with me: "Every day and night, in every home, Americans put on a show."
It stuck with me because I realized that there is a lot of original content out there on the web, producing regular entertainment on a shoe-string budget. Remember Homestar Runner? It's creators might be doing work on the Hub with the Ska super-hero group The Aquabats now, but Homestar was a big Internet sensation that allowed its creators to earn a living.
Perhaps what Netflix and Hulu should be doing is looking for the next Internet Idol -- finding proven independent creative works and giving them the funding they need to push their works to the next level. (Or for that matter, hosting their own "Internet Idol" reality show).
It would allow them the exclusive power of original content but with a lower-risk model and an immediate start-up audience to go along with it.
kq4ym: Yes, I think having uneven content and not having access to a lot of shows and episodes is certainly holding Hulu back. Also, the technology needs to be improved. My experiences with it have been poor, and I've confirmed with others that this has been their experience as well. For example, if I have to refresh the page due to a bug in your system, I don't want to be brought back to the beginning of the episode and have to sit through ads again. Similarly, if I agree to watch all my ads at the beginning of an episode, I don't want to have to sit through them again due to (again) a bug in your system.
Also, fine... but since we are Internet People, it makes sense that we would have heard of these series. So are you going to check the show out since you heard good things about it?
Hulu seems to have a formula that might work, if only they could be consistent. Create a "one place has it all" network and get 100s of millions of viewers would be the only way it could work.
Competing against or cooperating with the networks is always going to be an uphill battle. Hulu is great for setting your favorites, getting notifications when a new episode is available, and click to watch. But the uneveness of what's available from what network is too much of a distraction.
Original content? That will only work when there's many more millions watching.
I don't think the shows do need to be advertised on TV. Press coverage, word of mouth -- there are many ways for the news to get around. I knew about them, and certainly not because I saw promotions on TV. I think I read some very positive coverage of "House of Games" somewhere - not even sure where.
It was the idea of them pushing out something new (and hopefully good) and for the oppurtunity to have my son's not hog Netflix with "Elmo" and "Thomas the Train" :)
I tried to find some numbers like that, scucci but came up empty. My guess is that if the numbers were good they'd be available.
By the way, what made you excited about Netflix releasing its own series? Was it the idea itself for the show? Was it just that it was doing something new and innovative? Just curious.
Its funny, because I was all excited when Netflix release their first series a few months back, but I've completely forgotten about it and never watched it.
I'd love to see some metrics on that show. How many people watched? Did sales increase afterwards, etc.
Mr. Roques, regarding "extra content," you mean like interviews with cast members, or other types of bonus content related to the series? I have seen this a bit on Hulu with newer series like Parks and Recreation. I think it's wise to engage people further with more video that they wouldn't get on television, but with the shows they're already used to. Once people are drawn to a character, they'll want to invest more time in consuming content related to that character and show. I think they'll be more likely to spend time clicking on that content than diving into something new and exclusive to the service.
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