Netflix and Amazon heavily investing in higher resolution offerings

Thursday, March 9th, 2017 
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Netflix and Amazon Heavily Investing in Higher Resolution Technologies, IHS Markit Says

  • Focus on high-end TV drama pushed budgets up to film levels

Budget comparison: TV versus Film (UK)

LONDON — Amazon and Netflix are not only acquiring documentaries and films, but are also heavily involved in producing their own content using UHD technologies, according to a white paper released by IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, ahead of Cable Congress 2017.

Subscription Video on Demand (SVoD) services have among the lowest revenue per hour of content viewed and of paid content services, making premium content a greater investment. While films comprise the largest number of UHD titles, TV series offer a better return on hours of content viewed per dollar invested, the IHS Markit white paper said.

In the UK, Netflix offers 63 UHD titles. Amazon Prime and Amazon Instant have 28 and Sky has 26. “Online video producers generally offer a broader range of UHD genres than traditional pay TV platforms,” said Jonathan Broughton, senior home entertainment analyst, IHS Markit. “To compete, the budgets have grown dramatically to fulfill their ‘blockbuster’ needs. We are now seeing TV drama budgets around the same levels as major theatrical releases. This means that more expensive production methods involved in UHD make up a smaller proportion of the total budget.”