13.03.17

IHS: Netflix and Amazon increasing UHD focus

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Amazon and Netflix are investing significantly in producing their own content using UHD technologies, according to research from IHS Market.

Content providers like Netflix and Amazon are not just battling to acquire the latest TV shows and films, but also making premium content, in a bid to earn extra revenue from their Subscription Video on Demand (SVoD) services.

IHS state that although films currently make up the largest number of UHD titles, TV series can offer a better return on hours of content viewed per dollar/pound invested. Netflix currently leads in this space in the UK, offering 63 UHD titles in comparison to Amazon Prime &Amazon Instant (28) and Sky (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 fulfil 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.”