From Boom to Reset: Navigating the New TV Movie Landscape

The American TV movie industry is at a real crossroads in 2024. We saw a huge production boom for much of the past decade -- we're talking over 300 titles a year - but now the sector's having to hit the reset button as traditional buyers struggle with fewer viewers and shrinking ad dollars, and the streaming entrants mature. It's no surprise really, when you look at how quickly viewing habits are changing, especially with linear TV losing its grip on that all-important 18-49 demographic.

But it's not all doom and gloom. AVOD platforms are seeing explosive growth in the U.S., and that's starting to spread worldwide. These platforms actually love TV movies - Ampere Analysis shows viewers tend to finish them more often than series. Makes sense when you think about it - viewers on these platforms often want a complete story they can watch in one sitting.

Here's the challenging part though - even with these new platforms popping up, we're still dealing with major oversaturation from the boom years. Some buyers are still sitting on unwatched movies they bought back then, which makes them hesitant to acquire new content. Add in the nosedive in ad revenue, and you can see why linear channels have slashed their budgets, with some cutting TV movie slots from weekly to just monthly or quarterly.

Globally, the landscape's shifted too. Markets that used to snap up American TV movies are now more interested in their own local content. This is especially true in Europe, where both regulations and viewer preferences are pushing towards homegrown productions. Production companies have had to get creative - some are merging, some are partnering more often, and others are exploring new genres or finding specific niches where they can still compete. And there is also the inevitable downward adjustment in the overall volume of movies being green lit.

The diversification of platforms and the rise in AVOD and FAST have not yet translated into licensing revenue at the level once experienced by producers and distributors. With tighter revenues, resourceful producers are finding smart ways to keep production values up - think tax incentives, virtual production tech, and a focus on strong stories rather than expensive effects.

The industry's adapting with some promising strategies. We're seeing more exploration of international co-productions as producers seek to share risk and widen distribution. We're seeing some clever financing models too, like branded content deals and flexible release strategies. Some producers/distributors continue to explore and evolve new windowing approaches including shorter exclusivity periods to maximize monetization.

Content-wise, sure, rom-coms, mystery thrillers, true crime stories and holiday movies (especially with big names) are still the bread and butter. But we are seeing success rising in niche areas.

Faith-based films are gaining ground, especially in Latin America and parts of Asia, where Great American Family's originals are finding success across borders. And in Europe there is BeyondDutch’s New Faith Network streamer. Diversity-focused stories are hitting the mark too. AdWeek reports Lifetime is ramping up diverse holiday content after hits like A New Orleans Noel. Last year at MIPCOM, Hallmark's first LGBTQ+ Christmas movie, The Holiday Sitter, sold well internationally. Earlier this year Hallmark announced a 30% boost in diverse lead casting and the launch a YA romance brand.

Speaking of young adult, it's a bright spot in streaming. Netflix's Along for the Ride sparked major investment across platforms. Holiday-themed series like A Christmas Prince on Netflix and 12 Days of Christmas Eve on Hulu are drawing crowds. Streamers are adapting YA novels and creating franchise film series that appeal beyond teens, tapping into nostalgia and universal themes.

Data analytics is huge now - no surprise there. Smart platforms commissioning the productions and their producing partners are using viewer data to shape everything from casting and storylines to marketing.  It's a difference-maker that is becoming more of a necessity. 

Looking ahead, the winners will likely be those who can lock down and cover more of their production spend upfront, create content that really stands out, use data intelligently to identify untapped audiences, and build solid international partnerships. These days, many producers won't even start production without securing over half their budget in pre-sales.

From the days of the lucrative output and volume deals to title-by-title a la carte licensing, I’ve witnessed the ebb and flow of our business for the better part of three decades. And yes, the current marketplace challenges are all too real, as many of you will surely attest. But I've seen this industry bounce back time and time again. Those who can tough it out through this adjustment period might just find themselves in prime position when the next wave of growth hits. Given their scheduling utility, versatility and broad appeal made-for TV movies aren't going anywhere - they're still and will continue to be a vital part of the entertainment landscape and of the programming portfolios of channels and platforms around the globe.

 

FF