What is a Content Acquisition Strategy?

A content acquisition strategy is a systematic approach adopted by OTT platforms to source, evaluate, and procure content that aligns with their brand, audience preferences, and business objectives. This strategy encompasses decisions on whether to license existing content, produce original content, or a combination of both, and involves negotiations, legal considerations, and financial planning.​

Importance of Content Acquisition for OTT Platforms

Content is the cornerstone of any OTT platform. A well-executed content acquisition strategy ensures:

• Audience Retention and Growth: Fresh and relevant content keeps existing subscribers engaged and attracts new ones.
• Competitive Advantage: Exclusive or high-demand content can set a platform apart in a crowded market.
• Revenue Generation: Popular content can drive subscriptions, advertising revenue, and partnerships.
• Brand Identity: The type of content acquired reflects and shapes the platform’s brand image.​

Types of Content Acquisition

1. Licensed Content

Acquiring rights to existing content from studios, distributors, or other platforms. This can be exclusive or non-exclusive and is often time-bound.

Pros:

• Quickly expands content library.
• Lower upfront costs compared to original productions.

Cons:

• Limited control over content.
• Potential for content to be available on competing platforms.​

2. Original Content Production

Creating exclusive content in-house or through partnerships.​

Pros:

• Full control over content.
• Enhances brand identity.
• Potential for long-term revenue through syndication and merchandising.

Cons:

• High production costs.
• Longer time to market.​

3. Content Aggregation

Partnering with multiple content providers to offer a diverse range of content.​

Pros:

• Broad content offering.
• Attracts varied audience segments.​

Cons:

• Complex licensing agreements.

Potential content overlap.​

Steps to Develop a Content Acquisition Strategy

1. Audience Analysis

Understand your target audience’s preferences, demographics, and viewing habits. Utilize analytics and market research to inform content decisions.​

2. Content Gap Analysis

Identify gaps in your current content library and determine what content is needed to fill those gaps and meet audience expectations.​

3. Budget Planning

Allocate budget for content acquisition, balancing between licensed and original content. Consider production costs, licensing fees, and potential ROI

4. Partnership Development

Build relationships with content creators, studios, and distributors. Negotiate favorable terms and explore co-production opportunities.​

5. Legal and Compliance Review

Ensure all content acquisition complies with legal requirements, including rights management, regional restrictions, and content ratings.​

6. Performance Monitoring

Regularly assess content performance through metrics like viewership, engagement, and subscriber growth to inform future acquisition decisions.​

Challenges in Content Acquisition

• High Competition: The demand for premium content leads to bidding wars, driving up costs.
• Licensing Complexities: Navigating rights, territories, and exclusivity clauses can be intricate.
• Content Saturation: Standing out in a market flooded with content requires strategic selection.

Audience Fragmentation: Catering to diverse audience preferences necessitates a varied content portfolio