Streaming services have been convenient for people who want to consume content on their own schedule, but there's still the issue of having to subscribe to certain services to watch particular content. With Netflix licensing HBO shows, people might be able to save up on subscription fees, but American director Judd Apatow says it might be a bad thing.
Licensing May Lead to Less Shows
Many of us watch shows that have already ended, whether it's because they're comfort shows or because we don't want to have to wait a year until a new season arrives. Streaming service companies understand this, which is why it is licensing a lot of existing shows.
Netflix, for instance, holds a lot of series titles that are from various networks, and subscribers continue to consume them on a daily basis. Film producer Judd Apatow said that this could be a "scary thing," seeing as streaming services would go for it since it's cheaper.
Instead of spending $200 million on a new show, the service could just bring back and license certain TV shows, Apatow expressed. Since it is an effective strategy to bring subscribers in, consumers will get fewer new shows, as per Variety.
This is already happening between streaming platforms. Netflix already has HBO original shows like "Insecure," "Band of Brothers," "Ballers," "The Pacific," and "Six Feet Under." Even Netflix has already licensed all six seasons of "Sex and the City" to Warner Bros. Discovery.
Furthermore, Apatow stated that taking "big risks" was important in Hollywood, mentioning Universal as an example, pointing out its risk on Christopher Nolan's "Oppenheimer," which went on to win an Oscar.
"Like, who would think that anyone cared about 'Oppenheimer' like that?" Apatow said. "Like, is anyone talking about the inventor of the atom bomb in their lives? We don't, but the people have to take big risks, and then you realize, No, people want to be challenged. They want smart movies."
The Importance of Original Content
Streaming giants have been successful in making original content so far. Even though not all of them become huge hits, those that do make up for it. Take HBO, for instance. It has created the massive hit "Game of Thrones," and its success led to the prequel "House of the Dragon."
Netflix has seen a lot of successful originals as well like "Stranger Things," "Squid Game," "Black Mirror, "Arcane," and more recently, "One Piece" and "Avatar: The Last Airbender." As it turns out, these productions play a vital role in branding.
Darden Professor Anthony Palomba's paper states that while an original series could be expensive, mentioning the $15 million cost of each "Game of Thrones" episode in the final season, it could pay off.
The study shows that original TV shows could significantly influence how consumers perceive a brand. This could help build brand loyalty and brand equity, meaning that the streaming service would be preferred by subscribers.
Since original content tends to be exclusive to the streaming platform of the company that backed it, viewers will have no choice but to subscribe to the service to watch the show, providing the company with more business and revenue.
