Should Viacom18's Voot prioritize exclusive original content creation or licensing popular third-party shows to drive subscriber growth?

Introduction

The trade-off question at hand is whether Viacom18's Voot should prioritize exclusive original content creation or licensing popular third-party shows to drive subscriber growth. This scenario involves balancing the potential benefits of unique, proprietary content against the proven appeal of established third-party programming. My response will analyze this trade-off through a structured framework, considering key business factors, user impact, and strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Based on Voot's current market position, I'm thinking subscriber growth might be a critical priority. Could you share more about Voot's current market share and growth targets compared to competitors?

Why it matters: Helps contextualize the urgency of subscriber growth and informs content strategy. Expected answer: Voot has a smaller market share, aiming for aggressive growth. Impact on approach: Would lean towards faster-impact strategies if growth is urgent.

• Considering the content landscape, I'm assuming Voot has a mix of original and licensed content. What's the current ratio of original to licensed content, and how has this impacted user engagement so far?

Why it matters: Provides baseline for evaluating the effectiveness of each content type. Expected answer: Higher engagement with originals, but licensed content drives initial subscriptions. Impact on approach: Would influence the balance and timing of content strategy shifts.

• Looking at user demographics, I'm thinking Voot might have distinct audience segments. Can you elaborate on the key user segments and their content preferences?

Why it matters: Helps tailor content strategy to meet diverse user needs. Expected answer: Multiple segments with varying preferences for originals vs. licensed content. Impact on approach: Might suggest a hybrid strategy or targeted content approaches.

• Regarding technical capabilities, I'm curious about Voot's content production and distribution infrastructure. How scalable is our current system for ramping up original content production?

Why it matters: Assesses feasibility and timeline for expanding original content. Expected answer: Some capacity, but significant investment needed for major expansion. Impact on approach: Would influence the pace and scale of shifting towards originals.

• Considering resource allocation, I'm wondering about our current content budget. How is it currently split between original production and licensing, and what's the potential for increasing overall content spend?

Why it matters: Determines financial constraints and flexibility in content strategy. Expected answer: Limited budget increase possible, reallocation more likely. Impact on approach: Would impact the feasibility of pursuing both strategies simultaneously.