- Tyler Perry may be looking to end his $150M-per-year BET+ contract that runs through 2024
- Revenue in the Video Streaming segment is projected to reach $80.8B in 2022
Discourse regarding the state of streaming platforms has been abundant as the race for content and content creators remains heated. Corporate brands have strived to build or bolster their platforms to attract as many viewers as possible with the streaming video on demand (SVoD) user penetration at 15.2% in 2022 and is expected to hit 20.6% by 2027. Culturally diverse creators who are in high demand right now like Tyler Perry who could be looking for a bigger stake in the SVoD market by potentially walking away from his BET+ $150 million per year contract that runs through 2024.
Why This Matters: As usual, diverse content is in high demand. More specifically, the rush for Black content creators represents a significant amount of activity by streaming channels. One of the first notable deals was the one Netflix (NFLX -1.36%) made with Shonda Rhimes. Since then, they’ve added a deal with the Obamas while Amazon (AMZN -1.24%) Prime is doing business with Jordan Peele and Issa Rae. It is clear that part of these channels’ strategy includes using these creators’ culture cachet to draw users in, and that can cost a pretty penny.
This competition may be difficult for businesses; however, for creators, opportunities could be plentiful with revenue in the Video Streaming segment projected to reach $80.8B in 2022. Tyler Perry’s deal with BET+, while a seemingly natural combination, pays Perry $150 million per year plus a 25% equity stake in the Viacom-owned streaming platform. Yet and still, Perry’s present deal is coming to an end and he is considering moving to greener pastures, namely ones with a larger audience base than BET+’s 1.5 million subscribers.
Situational Awareness: Streaming platforms’ dependency on content that will draw eyes in will not go away. That leaves plenty of room for content creators to decide what they want to do. With the amount of cultural cachet held by Black content creators leading the way, circumstances like the one with Tyler Perry are only the tip of the iceberg. For instance, we are in the dawn of the ownership economy and a pioneer has appeared in the streaming space.
Kevin Fredericks, also known as KevOnStage has his own streaming platform, KevOnStage Studios. Although this channel is not at the same scale of any of the majors, the allure of control and ability to build a brand that can stand the test of time provides a new option for creators without access to the bigger companies.
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