As streaming video gets hotter and faster, technology companies like Apple, Facebook, Netflix, and Amazon are willing to spend billions of dollars on movies, showing that they're hoping to attract a large audience. On the other side of the market, smaller niche services are testing a more cost-sensitive model.
It is able to attract more than 3 million fans and followers on various platforms, including Facebook Watch and Roku.
"We will see a two-pronged approach," said Floris Bauer, co-founder and President of Gunpowder & Sky, which has offices in Los Angeles, New York and London. "Huge platforms like Netflix, Apple, etc. will replace the traditional networks and others, and you'll see hyper-targeting content in a very special creative filter, brands that target very different needs."
Streaming Services for certain genres try to gain with loyalty while lacking diversity. Fans will probably be involved, meaning they are stifling and will be more actively discussing and promoting the shows.
BroadwayHD focuses on Broadway shows. When it launched four years ago, it had 100 titles and focused its marketing on the US. However, it had to quickly change its payment system to accept foreign currency due to international demand.
"People say they love Broadway but have never seen it before Broadway," said BroadwayHD co-founder Bonnie Comley. "We give access to people who have heard about this brand, but have never seen it before."
The company, which receives much of its content by creating multi-camera footage of actual performance, pays about $ 2 million a year to film 10 or more marquee shows. It is also partner of Broadway producers, gets backgrounds and hosts other exclusive materials. By contrast, Broadway shows are starting to produce and produce $ 20 million at Commen.
The streaming service subscriptions cost $ 100 a year, or $ 8.99 a month. The company is also exploring other ways to generate advertising revenue, including sponsored content.
Dust currently does not charge subscription fees, but sees potential revenue opportunities through distribution agreements with streaming live TV services and other advertising-supported advertising methods. She also uses what is popular with the audience to know which short films TV shows and movies should become. "Theatric," "Prospect," began as a short film about his ministry. In the future, he could license this customized content, which already arrives at an audience, to larger streaming services and media companies.
The content business is still risky, despite lower costs. Specialized audiences can be difficult and producers need luck to succeed, said Fred Seibert, founder of Frederator Studios, who started a streaming service for his animated cartoon called Cartoon Hangover six years ago.
Frederator built a large audience on YouTube, but not enough revenue to sustain his business. Now his shows, including "Bee and Puppycat," the most successful animated series kickstarter, are available for $ 3.99 via the VRV streaming platform.
Seibert said he knew he was competing with a ton of other shows.
"There are absolutely none in any of these media companies," said Seibert. "There are great ideas and great accomplishments, sometimes they are successful, and sometimes they are not, there are many lousy ideas that are not great, but are well executed."
One advantage of niche programming is finding pockets of hardcore fans around the world when developers can only reach them. Gunpower & Sky tries that with Dust.
"There is no dust at six o'clock on a Monday," said Bauer. "We are a global 24/7 channel as long as we find people who love sci-fi worldwide."