In the past few years, the television industry has dramatically changed. People opt for streaming platforms more and more, so the number of traditional cable subscriptions is decreasing.
This development gives small production companies a never-before-seen chance to become established players in the very mobile world of entertainment.
They can succeed by recognizing and using the cord cutting circumstance to get to a new audience, saving the overhead costs, and creating entertaining content that would appeal to modern audiences.
The Rise of Cord Cutting
Cord cutting is the action of consumers choosing to cancel their subscription to conventional satellite or cable TV and to make use exclusively of streaming services such as Netflix, Hulu, and Amazon Prime Video.
In recent reports, a few million houses have been moving to such platforms due to its unique characteristics such as cost efficiency, freedom from inflexibility and immense lists of shows and movies.
The move from traditional big productions to streaming sites is more than just a change in customer behavior for smaller film companies but a major disruption in the way content is being given and consumed.
The times have changed and the production houses currently do not depend fully on the major networks to highlight their work. These days, a new generation of creators has direct access to viewers via separately sold cable channels (known as “over-the-top platforms“).
Why Cord Cutting Benefits Small Production Companies
1). Lower Barriers to Entry
Streaming platforms and internet-based distribution channels have drastically lowered the barriers to entry for small production companies.
Unlike traditional broadcasting, which requires significant investments and partnerships with cable networks, OTT platforms enable creators to upload and distribute content with minimal costs.
This democratization of content creation allows smaller players to compete with industry giants.
2). Direct-to-Consumer Reach
With cord cutting, small production companies can bypass middlemen and connect directly with their target audiences.
Platforms like YouTube, Roku, and Apple TV allow creators to build niche channels catering to specific demographics.
By understanding the preferences of their audience, production companies can craft content that aligns with viewer interests, resulting in higher engagement and loyalty.
3). Cost Efficiency
Traditional TV production often comes with high overhead costs, including studio rentals, network fees, and extensive marketing campaigns.
Streaming platforms eliminate many of these expenses. Small production companies can focus their budgets on creating high-quality content instead of dealing with the logistical challenges of traditional broadcasting.
4). Diverse Revenue Streams
Cord cutting has opened up diverse revenue streams for small production companies. These include:
- Subscription Fees: Platforms like Patreon allow creators to monetize content through monthly subscriptions.
- Advertising Revenue: YouTube and similar platforms enable companies to earn income through ad placements.
- Pay-Per-View: Platforms such as Vimeo offer pay-per-view models, letting creators charge for individual pieces of content.
- Sponsorship Deals: Partnering with brands to integrate products or services into content can be a lucrative option.
How Small Production Companies Can Maximize Cord Cutting
1). Embrace Niche Audiences
Unlike traditional networks that aim for mass appeal, streaming platforms thrive on niche content.
Small production companies should identify underserved audiences and create content tailored to their preferences.
Whether it’s a series about sustainable living or documentaries about local culture, niche programming builds loyal followings.
2). Leverage Data and Analytics
Streaming platforms provide detailed insights into viewer behavior, preferences, and engagement.
Small production companies can use this data to refine their content strategy, optimize release schedules, and even predict trends.
Analytics empower creators to make informed decisions and maximize the impact of their work.
4). Focus on Quality
In the competitive streaming market, quality trumps quantity. Small production companies should prioritize storytelling, cinematography, and production values to stand out from the crowd.
A single high-quality series or documentary can put a small company on the map.
The Future Is Bright for Small Production Companies
Small production companies are positioned to take advantage of this change as the entertainment industry is being redefined by cord-cutting.
By adopting different distribution methods, identifying specific target groups, and using the applications made available on streaming platforms, these companies can gain a good position in the market.
Cord cutting has ceased to be a concern only for the conventional TV business; it is often a breakthrough for the small production companies that first think to shine.
It is time to change, switch to the new, and give exciting series that are cool to the streaming
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