Predicting the future is problematic. The process begins with the predictor's perspective on the past, includes their view of things as they are today, and ends with someone else going back to see how close they came 12 months later. The task is further complicated by the difference between what we thinkwill happen and what we wantto happen, both of which can have no relationship to what actuallyhappens. The challenge then, to paraphrase Peter Drucker, is not "predict the future, but to create it." Our predictions focus on technologies and changes we believe will contribute to a new future for the M&E industry in 2022.
One: the battle for audience share intensifies
No one is in the media or entertainment business just to tell stories. They want to make a profit as well. As such, streaming and linear platforms, advertisers, and content creators need viewer or subscriber figures, minutes watched, customer churn, and revenue as success metrics. When streaming content was first introduced in 2007, Netflix and Hulu were the only two players. Today, there are nearly 300 VOD and OTT platforms available to consumers across 200+ countries and territories. That number is expected to increase to 600 platforms and two billion subscribers by 2025.
Of course, having a platform means you must make content available that consumers will want to watch and subscribe to and for advertisers to support. Variety's "Dare to Stream" report says 35% of SVOD subscribers choose a platform because it "Has the shows I want" to watch. Companies with existing or expanding content catalogs have a competitive advantage because they don't have to buy or license content, but even those titles become stale over time. The result is the demand for new content will continue to increase as more consumers tire of existing catalogs, are unable to find something to watch, and reach the point of deciding which service is no longer worth the subscription price.
Two: original foreign-language content investment increases
The global popularity of foreign titles in 2021 like "Squid Game" and "The Silent Sea" demonstrate what 2019's Best Film Oscar winner for "Parasite," director Bong Joon-ho hoped for -- that moviegoers would overcome the one-inch subtitle barrier and find engaging stories worth watching. The result of this success has platforms searching for possible successors. CNBC reports that studios are interested in foreign titles because (a) the market for them, especially South Korean titles, is hot, (b) they cost less to produce than domestic titles by a factor of 5-10x, (c) it allows them to establish production and licensing relationships that can freeze out competitors who may be late to the game, and (d) opens new markets to their platforms for local and other international titles.
Netflix announced it would invest approximately $500 million in Korean content in 2022. This year, Disney plans to launch service in South Korea, Taiwan, and Hong Kong and buy 50 Asian originals by 2023. Peacock has partnered with Telemundo to develop 50 Spanish-language projects and create a new streaming channel. Amazon Prime Video announced it is expanding its content development in India , ordering shows in Hindi, Tamil, and Telugu languages. Many of these titles will find their way to the US and other international markets. Several will find the same level of success and audience acceptance as Squid Game, Parasite, and other foreign language titles.
Three: culturalization becomes an integral component of localization
We've written many times about content creators' challenges when preparing titles for international release. We highlighted the numerous films or TV shows that have run up against regulatory challenges , how less-than-optimal "subs and dubs" have resulted in the foreign audience watching a show that differs from the original , and how getting it wrong impacts revenue and audience acceptance.
The inevitability of regulatory and social media review and criticism means that changes in post-production workflows are necessary to ensure titles pass regulatory and linguistic muster before title submission and release. As the number of titles being released continues to increase globally, directors, producers, and studios need to find a competitive advantage that allows them to reach markets faster, at reduced cost and with no regulatory risk. Beginning in 2022, adding Artificial Intelligence (AI) and Machine-Learning (ML) tools, such as Spherexgreenlight™ to existing human processes can help content providers accomplish this important objective while reducing localization costs and improving the customer experience, and getting to revenue faster.
The underlying notion of all these predictions is speed to market. How do content creators, owners, and distributors get in front of audiences, even during a pandemic, more quickly, with less cost, and fewer regulatory headaches? We believe 2022 is the year they begin to reimagine their markets, where they go for content, and how they manage post-production and win in the marketplace.
It's going to be an exciting year. Check back next January and let's see how well we did!
