HBO’s programming strategy
Rising competition in the video streaming space means media companies such as Time Warner (TWX) have had to update their programming strategies to keep up with the competition. Time Warner was asked about HBO’s programming strategy at the Deutsche Bank Media, Internet and Telecom conference earlier this month.
Time Warner said that with SVOD (subscription video on demand) services, serialized edgy programming worked better than on linear television networks. It also said that for HBO, it will continue to increase its original programming since its programming is a key growth driver for HBO’s revenues.
Time Warner also said it will continue to invest in programming that caters to all genres and all viewing demographics. According to the company, quality content will drive demand among both its HBO Now subscribers and its MVPD (multichannel video programming distributors). HBO played an important role in prompting AT&T (T) to acquire Time Warner.
Netflix’s focus on programming
In 2017, Netflix (NFLX) is expected to focus on appealing to subscribers with quality content. It wants to expand its video library with original movies, and it’s planning to spend $6.0 billion on content in 2017. The company spent $5.0 billion on content last year, which helped it significantly grow its subscriber base.
Netflix (NFLX) ended 2016 with 93.8 million subscribers compared to 74.8 million subscribers at the end of 2015. It added more than 7.0 million subscribers in 4Q16. For 1Q17, it’s looking to add 5.2 million customers.
Netflix’s content acquisition has recently focused on unscripted and stand-up comedy shows. The company’s head of entertainment, Ted Sarandos, recently said that the signing of comedians Jerry Seinfeld, Chris Rock, and Dave Chappelle would help drive subscriber gains.