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DIGITAL ORIGINAL SERIES Global Demand Report

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DIGITAL ORIGINAL SERIES Global Demand Report DIGITAL ORIGINAL SERIES Global Demand Report Trends in 2016 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Executive Summary } This year saw the release of several new, popular digital } The release of popular titles such as The Grand Tour originals. Three first-season titles — Stranger Things, and The Man in the High Castle caused demand Marvel’s Luke Cage, and Gilmore Girls: A Year in the for Amazon Video to grow by over six times in some Life — had the highest peak demand in 2016 in seven markets, such as the UK, Sweden, and Japan, in Q4 of out of the ten markets. All three ranked within the 2016, illustrating the importance of hit titles for SVOD top ten titles by peak demand in nine out of the ten platforms. markets. } Drama series had the most total demand over the } As a percentage of all demand for digital original series year in these markets, indicating both the number and this year, Netflix had the highest share in Brazil and popularity of titles in this genre. third-highest share in Mexico, suggesting that the other platforms have yet to appeal to Latin American } However, some markets had preferences for other markets. genres. Science fiction was especially popular in Brazil, while France, Mexico, and Sweden had strong } Non-Netflix platforms had the highest share in Japan, demand for comedy-dramas. where Hulu and Amazon Video (as well as Netflix) have been available since 2015. Digital Original Series with Highest Peak Demand in 2016 Orange Is Marvels Stranger Things Gilmore Girls Club De Cuervos The New Black Luke Cage United Kingdom France United States Germany Mexico Brazil Sweden Russia Australia Japan 2 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Contents Introduction 4 Methodology 5 Major Events in 2016 7 Demand Trends for Digital Original Series by Market 8 About Parrot Analytics 29 3 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Introduction Demand as the new paradigm In the fifth edition ofParrot Analytics’ Digital Original micro-blogging platforms, fan and critic rating Series Global Demand Report, the demand for all platforms, peer-to-peer protocols and file sharing digital original series in ten global markets was platforms. Parrot Analytics captures the expressions analyzed over the entirety of 2016 and aggregated of demand from these sources and combines them, by platform and genre. The digital original series using the power of advanced artificial intelligence, included in the report are original content produced into a single measure of demand. Therefore, by US-based SVOD platforms, including the major measuring this demand enables Parrot Analytics services Netflix, Hulu, and Amazon, as well as smaller to wield the industry’s most powerful metric linking players YouTube Red and NBC's Seeso. As these consumers and content across the globe. titles can play a key role in the success of these platforms, but their viewership numbers are kept a With this measure of demand, a vast array of analyses closely-guarded secret, the purpose of this report is become possible. Demand is country-specific, to provide the industry with insights into the demand meaning that the differences in demand for content for these shows, backed by empirical data for the between markets can be empirically measured even first time. if that content has not yet been officially released in that market. Demand is also platform-agnostic: while With the rapid proliferation of content distribution performance metrics may be available for certain platforms and the unprecedented levels of consumer titles on linear TV, Parrot Analytics’ demand metric fragmentation, existing measurement services in the reaches all content, from the popular broadcast industry are falling increasingly short around the programs to obscure cable titles to SVOD digital globe. original series, on which very little data has been The solution to the industry’s difficulty in navigating the released. Knowing the demand for all this content cross-platform fragmentation is through measuring allows content acquisition, licensing and advertising global content demand. Demand for content is what decisions to be made based on empirical data, with drives consumption on all platforms — linear and OTT a full picture of the state of content demand in any alike. Consumers express their demand for content given market. In an industry traditionally guided by through multiple “demand expression platforms” intuition and gut feelings, gaining insights into the including video streaming platforms, social media actual demand for content, no matter the platform platforms, photo sharing platforms, blogging and or market, is a definite competitive advantage. 4 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Methodology Global Content Demand Consumers express their demand for content through various “demand expression platforms” Fie haring 2 latfrms including: } Video Streaming Platforms Bloggin Photo haring Sies Sies } Social Media Platforms } Photo Sharing Platforms } Blogging & Micro-Blogging Platforms } Fan & Critic Rating Platforms } Wikis & Informational Sites Video Socil Sreming } Peer-to-Peer Protocols Medi Sies } File-Sharing Platforms Harnessing the power of cutting-edge artificial intelligence and hundreds of billions of data Fan ritic icrblogging points across the various demand expression Rating ies Sies platforms, Parrot Analytics is able to combine the different methods consumers use to express their Wiis demand for content into the industry’s first and Inormional Sies only cross-platform Global Demand Measurement. Industry-first Demand RankTM Parrot Analytics captures cross-platform audience demand for content around the world. Audience demand reflects the desire, engagement and viewership, weighted by importance: a stream or a download is a higher expression of demand than a passive impression or a comment. 5 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Methodology Parrot Analytics is a technology and data science company that measures global demand for television content. To solve the industry’s measurement challenge with the rapid proliferation of content distribution platforms and unprecedented levels of consumer fragmentation, Parrot Analytics has developed the world’s first and only cross- platform, country-specific and real-time contentDemand Measurement system. Global Demand Measurement System The cross-platform, country-specific Demand Measurement system introduced by Parrot Analytics consists of two components: Demand Expressions™ Demand Rating™ The industry’s de facto measure of global A measure designed to enable the comparison content demand. This metric measures the of demand for content across multiple total audience demand being expressed for markets. a title, within a market. Characteristics of Demand Expressions™: Characteristics of Demand Rating™: } They measure actual, expressed demand. Parrot } It is derived from Demand Expressions™ and adjusted Analytics does not use panel data. by country population size. } They encompass demand expressed by audiences } Scores range from zero to 100+. from a multitude of sources, weighted by importance. } It is exponentially harder for a TV show to get a higher } There is no ceiling to how many Demand Expressions™ Demand Rating™. a title can generate in a market. For more on Global Demand Measurement, read the Guide 6 Copyright © 2017 Parrot Analytics. All rights reserved. Digital Original Series — Global Demand Report | Trends in 2016 Major Events in 2016 SVOD news from the past year, by quarter } On January 6th, Netflix announced its launch in 130 new markets. This large expansion means that Q1 the leading SVOD platform is now available in over 190 countries, with the major exceptions of China, North Korea, and Syria. } The 73rd Golden Globes were held on January 10th, honoring both film and television. Netflix got one nomination for its original filmBeasts of No Nation as well as six nominations across five of its original series. However, Amazon was the SVOD winner: Mozart in the Jungle won both categories it was nominated in while Netflix went home empty-handed. } Hulu's two original series that premiered last quarter, 11.22.63 and The Path, rivalled Netflix's top Q2 original series in terms of demand for the first time. } YouTube Red released five new original series this quarter and renewed two existing series, Scare PewDiePie and Foursome, for a second season on June 23rd. Scare PewDiePie was then cancelled on February 14th, 2107 after controversy around its star. } On July 5th, Netflix and the CW confirmed a deal to release CW titles on Netflix a mere eight days after the show's season finale, replacing Hulu as the streaming provider of the CW's content. } Netflix released Stranger Things on July 15th to little initial fanfare, but it soon became a cultural Q3 phenomenon. Demand for the hit show remained high during the summer and it was the most popular title in the United States after its second season was announced. } The 68th Primetime Emmys were held on September 18th, with wins for several digital original series. Amazon Video’s Transparent won for Outstanding Lead Actor in a Comedy Series and Outstanding Directing for a Comedy
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