The Challenges Facing Movie and TV Studios in Greenlighting New Productions – In the ever-evolving landscape of entertainment, movie and TV studios are grappling with significant challenges that hinder their ability to greenlight new productions and launch new broadcast TV channels. Despite a strong desire from investors to pour funds into the industry, the existing business models fail to promise viable returns on investment and therefore the stakeholders are waiting until a viable solution is delivered.
The Streaming Model Conundrum
Platforms like Netflix and Hulu have revolutionized content consumption, but their commissioning strategies are cautious. These platforms prefer to license archive content, which offers a higher return on investment with minimal risk or recommission existing franchises. This conservative approach leaves studios in a bind, as they struggle to secure large-scale commitments for new, original productions.
The Influence of YouTube and the Creator Economy
The rise of YouTube and its creator-driven content has inspired studios to consider producing their own innovative programming. However, traditional studios are accustomed to a process where content is ordered and funded by external platforms. Transitioning to a model where they produce and monetize their own content presents a steep learning curve in direct commissioning.
YouTube’s monetization model, which suits creators with small teams and low budgets, does not scale well for traditional studios. Even top YouTubers like MrBeast, who spend millions on their productions, operate on budgets that are a fraction of what traditional studios spend. If MrBeast were to adopt traditional studio budgets, his profitability would plummet.
The Groundbreaking Kapang Solution
Enter Kapang and its sister company, View TV. Initially adopting a traditional Free Ad-Supported Streaming TV (FAST) model, Kapang has now developed a more advanced solution. This new model leverages traditional broadcast and studio business practices, combined with a hybrid sales process, to offer a sustainable monetization strategy.
This approach allows studios and major broadcasters to monetize their content at rates significantly higher than YouTube, while maintaining creative independence. Additionally, Kapang is integrating YouTubers who adopt structured episodic formats, elevating them to true television content producers. This not only enhances their earnings but also brings their massive follower bases into the fold of traditional TV viewership.
Conclusion – Enabling content factories to start producing again
The entertainment industry stands at a crossroads, with traditional studios and new-age creators navigating a complex landscape. While platforms like Netflix and Hulu play it safe with archive content, innovative solutions like those offered by Kapang and View TV provide a promising path forward. By blending traditional business models with modern monetization strategies, studios can achieve sustainable growth and creative freedom, ensuring a vibrant future for the industry.
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