Emergence of OTT Video and the Production Expenditures of Established Audiovisual Producers

ABSTRACT

This paper examines the audiovisual programming and production expenditures of leading US media distributors, in the context of the market entry of Over-The-Top content distributors such as Netflix. Using data from the annual SEC filings of publicly traded audiovisual production companies over 2008–2017, it seeks to provide insights into how production expenditures figure as part of a competitive strategy in the context of new media growth. The results suggest that, despite media accounts to the contrary, established audiovisual producers have not materially altered their investment strategies in response to OTT video distribution.

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

¹ Recently, due to the effects of the corona virus crisis and pandemic trends, the average time US consumers spend with media rose to more than 13 hours (Dolliver, 2020).

Additional information

Notes on contributors

Krishna Jayakar

Krishna Jayakar is a professor in the Department of Telecommunications at Pennsylvania State University , University Park He serves as co-director of the Institute for Information Policy, housed in the Donald P. Bellisario College of Communications. His areas of research cover telecommunications policy and media economics, with a special interest in universal access to telecommunications.

Eun-A Park

Eun-A Park is an Associate Professor in the Department of Communication Arts, Language & Literature (CALL) at Western Colorado University. Her research interest focuess on strategic communication, social and political impact of new media, media business and telecommunications policy, and diffusion of new media technologies.