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Will OTT providers capitalize on syndicated shows?

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Will OTT providers capitalize on syndicated shows?

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

With recent moves made by Apple and Sony, it's clear that over-the-top content is a big

priority for many organizations trying to target media consumers who live in a world

where traditional behaviors for television consumption don't apply. It's for this reason

that many OTT content providers are utilizing subscription billing to generate recurring

payments, which in turn helps with customer retention and increases revenue.

One of the traditions that is rapidly changing is the stranglehold that cable television has

had on syndicated programming. In other words, there are specific cable channels

dedicated to giving a second life to broadcast shows that may have been canceled or

just ran their due course. According to Advertising Age, a variety of cable and satellite

enterprises are trying to devise ways to capitalize on viewers' preferences while

avoiding the outdated models that can rub consumers the wrong way. For instance, the

standard cable bundle is packed to the gills with hundreds of channels, but also a heavy

cost. This is having an impact on the way consumers watch shows.

Reruns lose momentum on cable

With certain shows, advertisers and cable companies are able to capitalize on their

seemingly timeless appeal among audiences who either can't find what they're looking

for with new programming, missed the shows the first time around or are nostalgic for

the era when the reruns first aired. Whatever the reasoning, it's given plenty of support

to dedicating entire cable channels to reruns. According to Marketplace, cable has

been the ideal afterlife for syndicated television – that is until recently.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

For instance, Viacom, a leading media organization,

indicated the audience for syndicated programming

has shrunk in recent years. The Wall Street Journal

explained that the corporation has gone through

serious restructuring after it saw viewership for shows

such as CSI and Community failed to meet anticipated

levels. One factor that may be contributing to the

decline in popularity of reruns is the fact that the cable

networks have increased the amount of original

programming they air.

"Until recently, cable has

been the ideal afterlife for

syndicated television."

Syndication goes streaming

Streaming video on demand service providers like Hulu, Amazon and Netflix have been

able to pick up some of the momentum that the cable providers have seen drop in

recent years.

"Now there are just more and more markets for original material, there are more and

more markets for titles that have been sitting on the shelf." explained Tom Nunan, a film

and television producer and a lecturer at UCLA, on Marketplace.

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Still, syndicated SVOD content faces some of the same challenges as the reruns aired

on cable television. Streaming services like Netflix have taken the initiative to develop

new, original shows, as have many of the networks. With golden oldies like Seinfeld

and Friends, it's also difficult for more recent syndicated shows to make headway with

viewers.

As more cable networks set up SVOD options, the number of ways that consumers can

watch what they want, whenever they want will continue to increase. It's up to the

service providers to develop business models that will be the most lucrative and

develop a loyal following when pursuing this opportunity.

5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.