The winds of change are blowing again in the over-the-top (OTT) video space, as industry giants Netflix and Hulu are looking to shake things up and explore new markets.
Now, the name of the game in the OTT market is “local content.”
Netflix, for instance, recently confirmed at the Asia Pacific Pay-TV Operators (APOS) summit in Bali that it is building a global content strategy.
“We hope to be producing content all around the world,” Netflix CEO Reed Hastings said at the event. “That’s the future for Netflix: local production, global distribution.”
It’s an effort to increase international subscriptions, CNBC reports. Soon, consumers will have access to local content from foreign markets; consumers in New York, in other words, will be able to watch shows that would typically air in places like France and South Korea.
Hulu is also exploring the idea of rolling out a live TV service that will emphasize local programming, primarily local news, sports and television shows. The company intends to experiment with skinny bundles, which will provide consumers with a select number of channels featuring local content. Instead of receiving local programming through large, traditional packages, customers will be able to opt for just a few channels at a time.
“The marketplace is right for this now,” explained Hulu CEO Mike Hopkins recently. “Across the board, there is a desire among TV networks to connect with people who have fallen out of love with television.”
As of right now, both companies are in the early planning stages with these new initiatives.