May 10, 2024

Is Content Still the King in Television Networks?

Is content still the king for television networks, or does something else matter more? By: Kritchanon Tan Kian Wei

In today’s age, where streaming services can raise subscriber counts by cracking down on password sharing, where audiences subscribe to such services to rewatch old favourites like Friends (1994-2004) or The Office (2005-2013), is content still king? Or should something else be prioritised by television networks?

While it is true that many studios and TV networks have a huge library of classics, and there are things that these companies can do to increase subscriber counts beyond producing new content, such as marketing their existing offerings more effectively, content production still plays a fundamental role in the business strategy of networks.

High quality content can entertain and captivate audiences, making them willing to pay for it and subsequent releases. Shows like Amazon’s The Boys, which did not have any pre-existing nostalgia or reputation attached to it, managed to wow audiences, drawing them to Amazon Prime Video despite its budget of US$90 million that’s lower than the average Hollywood blockbuster. Alternatively, when it comes to traditional television, releasing certain types or genres of content can draw different kinds of audiences, making the company more valuable to advertisers who may be looking to appeal to a specific demographic.

When a piece of content is exceptionally good, word-of-mouth and the power of social media can draw audiences far more effectively than marketing can do, even if the content does not have a built-in audience from the start. Think of Netflix’s Stranger Things (2016-Present) or Squid Game (2021-Present) for example. Both shows’ first seasons (with a US$48 million and US$21.4 million budget respectively) were not highly anticipated releases prior to launch, but upon release, they managed to draw lots of attention, more so through word-of-mouth than typical forms of marketing.

However, that isn’t to say that marketing isn’t important to television networks. Many shows, especially new ones that don’t come with emotional attachment through the form of a star or a connection to an existing IP, need help from marketing to be able to find their audience. Or if a production already has a huge budget, like Amazon’s The Rings of Power and its US$465 million budget, marketing may be necessary to ensure people are aware of the show’s release.

Therefore, though it is arguable that content still is king, since content is what audiences tune in for at the end of the day, marketing is still immensely valuable, and the right approach should be to combine high-quality content with effective marketing. Options like price increases or password sharing crackdowns may result in an increase in subscribers, but this will come at the expense of reputation and customer satisfaction. A better approach would be to provide a great existing content library to help lure audiences, and incentivise them to stay with a staggered release of upcoming titles that would resonate with them. If both conditions can be fulfilled, marketing and subsequent word-of-mouth can help to amplify the rewards.

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