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Mavericks like Netflix and Amazon are also changing how a production
deal goes through. Traditional networks pay producers and bankers as
soon as they get their content. Streaming services parcel out payments
over time to offset the expense of content creation against the money
brought in from subscribers. That shift limits small-to-medium-sized
production companies because they need to be paid in advance for
project financing. Some banks have addressed that problem though.
Barclays will loan money against future payments so producers are not
required to tie up their personal assets.

Streaming companies are also changing the way screenwriters and
directors tell their stories. The novelistic element of binge-watching lets
the story drive the running time, not the other way around. Remember
when one had to wait for fall television season to catch up on the best
series? Well, these days, global television streaming services operate
24/7, twelve months of the year.

In another camp is Hulu, which last year became its own live TV
provider. For one flat fee, regular Hulu has thousands of film and
television series as well as a live TV package with over 50 channels
and is compatible with Android, Apple, Chromecast, and others. One
stipulation: Hulu only offers live feed from the big-four broadcasters
(ABC, CBS, NBC, Fox) in certain regions, which covers a lot of
households, but still leaves some audiences out.

All told, video-on-demand, pay-per-view, and subscription video will
have a total market value of $283 billion by 2022, according to Digital
TV Research reports. These numbers only further reinforce the fact that
the appetite to invest in strong content will persist. Moving forward,
TV and online video planning and measurement will become one,
with good metrics data making the deciding vote for ad agencies and
advertisers looking for the maximum exposure for their clients.

Television has certainly come a long way. While you may not be able
to put a price on love, entertainment is an entirely different story. We
eagerly await the next chapter.

Dieter Esch
Chairman

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