FAANGS sink teeth into original commissions | Media Analysis | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Not giving the traditional content players any breathing space at all, the FAANG companies — Facebook, Apple, Amazon, Netflix and Google – are embarking on an original content spree with the former two alone almost doubling their catalogue says Ampere Analysis.
ampere 25Sep2018

The company’s latest analysis reveals that as SVOD leader Netflix continues to forge ahead in original content creation, the increasingly versatile platforms from Facebook, Apple and Google-owned YouTube are making unprecedented strides in original content production.

Yet in what may be a case of the media empires striking back, the FAANGs are facing more competition from both industry outliers and established brands — in particular Disney but also others such as Britbox and DC Universe —announcing original commissioning and potentially shaking up the on-demand market. The creation of Disney’s DTC service and others such as DC Universe in the streaming market has meant that content once provided to Netflix will soon form direct competition.

In response, Netflix is continuing its successful formula by commissioning more original sci-fi and comedy series, reacting to the tastes of its audience. Netflix is leading the commissioning spree with over 250 upcoming titles. This will more than double their originals. Apple has also stepped up production of its original content with much of its $1 billion commitment allocated to youth-skewing genres. Apple, YouTube and Facebook have 65 upcoming original titles between them. Though Ampere believes that it has appeared to have fallen behind with the least new orders, YouTube Premium the service has promised 50 new shows by the end of 2019.

Ampere also found that overall comedy was the most commissioned genre with sci-fi as the second favourite genre of SVOD subscribers. Apple is emulating Amazon and Netflix, with sci-fi being its top commission. The company’s upcoming titles include a high-profile reboot of Stephen Spielberg’s Amazing Stories. Amazon was found to commit to a higher proportion of new title commissioning to Drama titles, at 29% of upcoming titles, compared with Netflix’s 17%. YouTube and Facebook have been increasing their volume of scripted content, with YouTube Premium focusing on youth-orientated comedy.

“With so much new content being produced across a range of subscription services, the FAANG group are under increasing pressure to create content that not only attracts new audiences but also prevents existing consumers from churning,” said Ampere analyst Richard Cooper. “All the major players have been expanding the number of original commissions in the face of an increasingly competitive market. Netflix is set to more than double its originals catalogue, as is Apple. What’s interesting is the different audience profile that each of the FAANGs appear to be targeting with their originals content, suggesting they’re aiming at different niches within the SVOD market.”