Alejandro Rojas, director of applied analytics at Parrot Analytics, and Alex Nempeque, data & insight director at WarnerMedia Latin America, presented at VS Next “How to Successfully expand revenue streams for content assets”, where they highlighted how production companies are acquiring some of the most important IPs to relaunch them as new products.
Rojas underlined that one of the metrics that they have developed and that some companies are using is based on the “Target Market Adoption”, which indicates the rate for the title out of its total addressable market, and it is based on the global population share expressing demand for the title, indexed to the genre average adoption.
Another metric from the consultancy company follows the longevity of a product, or the ratio of a title’s peak demand to its average demand, multiplied by the time since its release to indicate how well demand is maintained over time. At this point, the metric tries to determine whether a product can be ephemeral or timeless. Examples of this have been The Big Bang Theory, a series that had high adoption and longevity metrics, guaranteeing the release of a second series derived from it, such as Young Sheldon.
Here also converges what Rojas and Parrots consider as «franchisability», which indicates how much potential for franchises and spin-offs the title has based on its longevity (how well demand has held up over time) and its adoption (how many people have expressed demand for the show out of its target market), indexed to the franchisability of the average title.
Alex Nempeque, data & insight director at WarnerMedia Latin America, talked about the formula behind an iconic franchise: ‘Although there is no specific strategy for the success of a product derived from a franchise, it should have elements that can promote that guarantee. Franchises have elements that can be taken advantage of, for example, stories are sometimes already done so there is a lower than usual risk of failing in that aspect, however, one of the great risks is adapting those stories and that it does not represent the cultural trend or the fandom that supports them’.
The executive assured that it is a mixture of market study, a precise distribution and a complementary story are elements that could guarantee the relaunch of a franchise today.
The full session can be seen here: https://virtualscreenings.com/VS-LA/vs-next/panel-7/