The race for original content: Why the Top Gear trio chose Amazon
Last week the controversial trio of Clarkson, Hammond and May finally resurfaced, eschewing a more traditional media deal in favour of Amazon’s Prime streaming service. It’s a move that’s surprised many media pundits, but one that’s got people talking about the rise of video streaming and the ability of the former Top Gear presenters to make it a success on a new format.
Amazon bound: May, Clarkson and Hammond
So why have the hottest property on TV chosen Amazon, and why has Amazon outbid its competitors to win the services of Clarkson and his cronies?
It’s no mystery why three of the highest paid stars on terrestrial TV have decided to make a move online. They are following their audience.
Only the most ardently Luddite of TV fans could have failed to recognise the astronomical rate of growth in video streaming and on demand TV. It’s been phenomenal. Currently growing around 60 per cent every quarter, this rise has obviously had a detrimental effect on more traditional broadcasting, which is currently declining at a rate of 4 per cent a quarter.
In fact, less than half of viewers now watch standard linear TV broadcasts, instead opting to use on demand, DVRs and streaming to watch their favourite shows and movies when they want and not when the TV schedulers decide. It’s not just youngsters changing their viewing habits either. A recent Forrester report shows this shift in viewing habits can also be seen across Gen Xers and Baby Boomers too.
As you would expect, Prime has been a huge success for Amazon. Earlier this year Amazon credited its 40 million Prime subscribers worldwide for returning the company to profitability and helping its share price soar following the worst profits in the company’s history. However, Amazon Prime isn’t the only player in this space...
Amazon’s main competitor, Netflix, has dominated column inches over the last couple of years. With a massive 58 million subscribers globally it arguably has a sexier, better known and easier to use platform.
It has better content too. More shows, full seasons and have pioneered original on-demand content. Not just re-broadcasting popular shows from traditional broadcasters, such as Breaking Bad, but it has been creating its own content for some time now. From rejuvenating cult classics like Arrested Development to producing its own critically acclaimed shows like Orange Is the New Black and signing a production deal with – undoubtedly the world’s biggest entertainment property right now – Disney’s Marvel, it is not only matching the quality of broadcast content but often surpassing it.
Netflix has committed to spend $6bn on content over the next three years so it’s no surprise its latest show, Hot Wet American Summer: First Day Of Camp, is littered with A-list Hollywood stars, nor that it has announced deals to produce shows and movies with the likes of Brad Pitt, Adam Sandler and Angelina Jolie.
On the other hand, Amazon has been less active, or successful, with its original content. It has preferred to hook viewers onto popular shows such as Mad Men and Sons Of Anarchy then drive them to its pay-to-view platform to watch recent seasons episodes. However, this is set to change as earlier this month it announced its intention to spend $100m on original content for Amazon Prime. Not an insignificant amount, but it pales in comparison to Netflix’s much deeper investment so it need to make its content productions work much harder. Signing up the UK’s hugely popular, headline-grabbing auto buffoons makes perfect sense then.
Jeremy Clarkson has stated that one of the factors that drew them to the deal was their ability to have the freedom to make the show they want with no interventions from a state broadcaster or advertisers –surely signalling their intention to raise their anti-pc, press-baiting stunts to ludicrous levels. A win-win for the channel drawing viewers in whilst getting them headlines globally.
It’s a coup for Amazon for sure, but I can’t imagine Netflix will be losing any sleep over it just yet. It needs a few more smart signings like this before it will truly give the on demand juggernaut a run for its money.
Allan Blair is head of strategy at Tribal Worldwide London