With the industry’s decline in theatrical sales and the growth of over-the-top (OTT) video consumption, Magnolia Pictures, a foremost distributor of independent films in the U.S. market, understood that it needed to adapt to continue to forge ahead.
Magnolia identified three primary advantages of breaking into the OTT space:
- A uniquely international appeal amongst American film distributors, making a strong case for a reliable and cost-effective method of global distribution
- Ability to deliver a customized audience experience
- Priceless user and consumption data to help make informed content decisions and move quickly on new business opportunities
In 2016, Magnolia Pictures began its move into the OTT video market to earn new revenue and further monetize its vast, burgeoning content library. With a brand built on premium content and a loyal following among a diverse audience, the distributor saw an opportunity to stand apart in the fragmented, highly competitive OTT services landscape. Rather than rely solely on established subscription services, Magnolia planned to launch OTT services under its own well-recognized brand.
However, they soon encountered the inevitable challenges of operating OTT video supply chains. For one thing, their content library contained assets that were acquired from multiple post-production houses with different technical specifications. When it came time to deliver them, each piece of content needed to be transformed to fit the proper tech specs—thousands of titles requiring time and attention before they could reach their final destinations. This significantly increased the overall cost of transcoding and delivery, demanding a solution that could both alleviate their video supply chain as well as offer an OTT platform.
Magnolia needed a partner who could assist with the design and delivery of its services, while providing a video supply chain solution.
They found that partner in Ateliere.
Magnolia implemented Ateliere Connect, our proprietary cloud-based media logistics solution, to tackle their unique challenges and requirements. With Connect, Magnolia built its services around a multi-platform strategy, delivering device-optimized audio and video to web interfaces and app-based distribution.
Over the course of only three years, Ateliere successfully and efficiently delivered thousands of titles to dozens of different delivery points from OTT platforms to linear channels.
In addition to Connect, Magnolia also implemented our customized app-building solution, Ateliere Discover. They created subscription-based, à la carte OTT channels for each of their key genres (documentary, action, horror, and comedy), along with a select channel that spotlights their most acclaimed features.
With these custom-built platforms, Magnolia can now reach people from three continents and fifteen different countries.
Once each channel was up and running, Discover’s backend analytics gave Magnolia further insights about their audience. They were able to isolate the highest performing titles within each market, empowering them with the information to make lucrative decisions when selecting content in the future.
Contact us to find out how Ateliere Discover can help you create a premium audience experience.