By Covey E. Son
Walt Disney Co.'s decision this month to stream its own movies
and shows marks Hollywood's latest -- and biggest -- attempt to
wean itself from Netflix Inc.
In the shadow of Netflix's boom, smaller services have been
finding niche audiences who appreciate such genres as horror and
anime -- or themes such as British shows or automobiles -- but are
unsatisfied by mainstream general entertainment sources like
Netflix and Hulu.
None of these boutique sites, such as Shudder and Crunchyroll,
matches Netflix's sprawling library with thousands of popular
titles nor its subscriber base of 104 million, which
media-measurement firm comScore says represents 75% of U.S.
streaming-service viewers. Rather, they are seeking to stand out by
offering a hand-picked platter of content.
"Fans feel they can go deeper in contrast to a big service,
whether that's a broadcast network or a mass-market subscription
video service that's trying to have something for everyone," said
Christopher Vollmer, a partner at PricewaterhouseCoopers's
entertainment and media practice.
Some avoid the mainstream entirely. MUBI Inc. offers "arthouse
cinema" -- foreign films, independent films and classics. The
company shows just 30 films at any given time, with a new one added
and another removed each day. The closely held company has 100,000
subscribers who pay $4.99 a month, said MUBI director of content
Daniel Kasman.
Netflix isn't a direct competitor, Mr. Kasman said, and even
some of the most devout cinephiles often find themselves stumped by
MUBI's selection of obscure and unknown films. He and two other
curators frequently visit film festivals including Cannes and
Sundance to scout for new material, working directly with
filmmakers and small distributors to buy streaming rights.
Mr. Kasman said he seeks movies that are important to MUBI's
audience. "It can be something that touches you, expand your mind
or show you new places or new stories you've never thought of
before," he said. "It might be something that makes you laugh. It
might be a classic and a favorite of yours."
Then there's Brown Sugar, which bills itself as "just like
Netflix, only blacker," featuring a collection of 1970s films
starring black actors in lead roles, like "Shaft" and "Uptown
Saturday Night." Bounce TV, a broadcast network catering to a black
audience, launched Brown Sugar in November to celebrate the era in
which Hollywood started offering lead roles to black actors.
Bounce's parent company, Katz Broadcasting, which was acquired by
E.W. Scripps Co., didn't disclose subscriber figures for its
$3.99-a-month service.
Video streaming as a whole -- getting shows and movies on demand
via the web -- is soaring. Revenues tripled for subscription
video-on-demand since 2012 to over $8.2 billion last year,
according to a PricewaterhouseCoopers report. Netflix reported $5
billion in U.S. streaming revenue last year. PwC projects the
market will reach $14 billion in 2021.
Although Nextlix is expanding in genres such as children's fare,
reality TV and stand-up comedy specials, PwC's Vollmer said Netflix
wasn't likely to emphasize niche fare, but rather a "something for
everyone" approach.
That leaves room for others.
AMC Networks Inc., for example, dove into the horror market in
2105 with Shudder, a spooky-flicks-only streaming service. Its
selection ranges from the iconic "Friday the 13th" to lesser known
titles and foreign productions.
Matt Faure, a 44-year-old logistics professional in Redmond,
Wash., said he typically watches a movie a day on Shudder.
Mr. Faure said it's a different experience than browsing Netflix
for horror, where its selection is largely filled with newer, more
popular flicks. He likes those too, but he's more interested in
discovering the arcane and unknown, like a German film called
"Necromantic."
"I'm more impressed by somebody who reaches back and takes some
of the older and more obscure films," Mr. Faure said.
Services like Shudder offer value to fans who are less
interested in a broad selection of videos or something to
supplement their Netflix fare, PwC's Mr. Vollmer said. Shudder,
which declined to disclose its number of subscribers, costs about
$4.99 a month, compared to about $8 a month for Netflix.
Netflix declined to comment.
Crunchyroll, owned by a joint venture between AT&T Inc. and
Hollywood veteran Peter Chernin's Chernin Group, has become the
go-to anime streaming hub for a million paid subscribers who pay
$6.95 a month. In January, the company launched VRV, a service that
bundles Crunchyroll and other related subscription video services
together for "super fans" looking to save on their favorite
channels.
The Enthusiast Network, a trade-magazine publisher owned by
hedge fund GoldenTree Asset Management LP, sought to imitate
Crunchyroll with an "eight-figure bet" on Motor Trend On Demand in
2015, Chief Executive Scott Dickey said. Today, 100,000 gearheads
are subscribed for $4.99 a month or $49.99 a year. They come to the
channel for a dozen originally produced automobile shows and live
streams of racing events.
Earlier this month, the Enthusiast Network, known as TEN,
announced a joint venture with Discovery Communications Inc.
"We knew video was coming and it was coming fast and furious,"
Mr. Dickey said. "We had a really unique environment at TEN where
our core business was declining ... We had to place bets and we had
to place bets quickly."
(END) Dow Jones Newswires
August 18, 2017 05:44 ET (09:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Netflix (NASDAQ:NFLX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Netflix (NASDAQ:NFLX)
Historical Stock Chart
From Sep 2023 to Sep 2024