Toomas Luhats: Partnering with majors like Netflix is key for streaming services
Strong partnerships are essential in today's streaming industry, as attaining top-tier results alone is increasingly difficult, Toomas Luhats, ERR board member and Jupiter streaming platform co-founder, said.
Speaking to Raadio 2 Wednesday, Luhats said ERR's Jupiter streaming platform has so far exceeded all expectations, since its advent, in spring 2020.
"I remember when we started this project, people told me it was pointless, unnecessary, and asked why we were even bothering," he recalled.
Before, the biggest film and series producers and streamers, such as Netflix, Disney, Amazon, Paramount+ etc., assumed viewers would always want to pay directly to use their platforms.
However, times have changed in the past decade, and these media giants are now cutting deals with local channels, even in countries as small as Estonia.
Just over the past two weeks, Netflix has partnered with Estonian channel Go3; Duo Media's series are being added to the Elisa Huub streaming service, which will also feature content from Disney.
"The mergers between Go3 and Netflix, and Elisa Huub and Duo Media, clearly show are a clear demonstration of the fact that content consumption has been made more convenient for the public," Luhats said.
He rejected the claim that major streaming platforms are only now making this move, with a tone of desperation, or are targeting markets they had previously dismissed due to their own hubris.
"Nowadays, everyone worldwide is seeking strong partnerships, so this is a very reasonable step to make," he went on.
At the same time, the consumer has not changed that much in terms of their viewing preferences; simply the formats through which content is delivered have changed.
"People still want to watch great movies, series, and documentaries, and want to do so comfortably, in a place amenable to them," he said.
"Our job is to ensure that happens in the most pleasing and accessible way possible."
Jupiter itself has also sought, and found, partnerships.
"The third season of Estonian thriller series "Reetur" will soon be on ETV's screens and will be carried by Jupiter. This was all done in collaboration with Elisa," Luhats noted.
Another series, "Armukelm," premieres first on Elisa, with Estonian Telefilm co-producing, and will later air on ERR channels, presumably showcasing how collaboration creates better content and simplifies viewing for audiences.
"Detektiiv von Fock," an Estonian, Italian, and Latvian co-production, highlights the necessity of partnerships for achieving exceptional results, both in film production and streaming, Luhats added.
All of this means the days when engaging with major players was challenging, to say the least, are largely over, he said, reminiscing over an incident during his time at Telia, when their attempt to pitch a group-wide streaming platform to Netflix at a major industry fair ended with a door literally shut in their faces; Netflix, then powerful and selective, dismissed smaller market opportunities without hesitation.
"This might also be one of the foundations of Netflix's success," Luhats acknowledged.
"But, 10 years have passed, and now the situation is somewhat different," he went on, noting that in today's world, strong partnerships and quality content are key to winning in the industry.
"Content is still king in this business," he added.
Realizing user growth limits led Netflix to cut less successful series, shedding light on the crucial balance between content quality and financial viability.
This is a long-standing concern in the industry, according to Luhats.
"I do not remember a time when no one was worried," he said.
And yet despite it all, even the big screen, in the form of the cinema, now well over 100 years in existence, should not be forecast.
"In fact, I believe there is no point in waiting for the death of cinema," Luhats said.
"It just won't happen."
Instead, streaming services provide a conduit to new releases soon after they have been shown at the movie houses, just as at one time, video and DVD rental stores filled the same function.
"This model will continue to function," Luhats concluded.
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Editor: Andrew Whyte, Neit-Eerik Nestor
Source: "R2 Hommik!", interviewers Bert Järvet and Jüri Muttika