Major advertising-funded VOD platforms have joined the original content goldrush, with services such as Roku, Tubi and IMDb TV collectively releasing more than 100 new original titles in the past two years, according to a new report from Ampere Analysis.
Also, U.S. AVOD services with the highest investment in original content have seen the largest growth in usage, according to Ampere. Tubi, which has launched 20 original titles, saw monthly usage grow by 164%, by Ampere’s estimates, between Q3 2020 and Q3 2021.
AVOD originals cannot compete with titles from larger SVOD services, which are also creating more originals. AVOD platforms can’t match the billions of dollars spent by the leading SVOD players in the creation of original content, according to Ampere. AVOD services are smaller in scale, and the advertising business model will struggle to justify the sorts of multi-million-dollars-per-hour content investments which the leading SVOD players have applied to new flagship titles. However, according to Ampere’s analysts, one fundamental calculation for investing in original content remains true for both service types: As platforms expand globally, original content investments scale well. Investing in originals is a consistent way to offer exclusive content worldwide without incurring additional licensing costs in each market, according to Ampere.
Additionally, while AVOD originals do not yet provide enough of a draw to pull viewers away from larger SVOD platforms entirely, they do differentiate services within the increasingly fragmented AVOD market, and offer a reason for viewers to choose one service over another, according to Ampere.
Roku has invested more extensively in original-branded content, in part because of its acquisitions of Quibi’s content assets and its focus on low-cost-per-hour content. Of the six most popular AVOD platforms in the United States, Pluto TV is the only one not to have invested meaningfully in original programming — although it is in a position to take advantage of the programming slate of its parent company — Paramount — and outside the United States has become the temporary home for hit Paramount originals such as “Star Trek: Discovery.”
“Despite AVOD originals not having an impact in the wider streaming market — largely limited by their current lack of reach — AVOD platforms should not stop their investment,” said Joseph Hall, analyst at Ampere Analysis, in a statement. “Our analysis shows that the AVOD platforms with the highest growth in use since Q3 2020 are those with the most released or announced original programming.”