Familiar stories reign supreme in Hollywood, with recent data revealing that existing IP-based content accounts for at least 38% of customer acquisition and 34% of customer retention across major streaming platforms.
The entertainment industry’s reliance on intellectual property (IP) is a phenomenon that continues to fascinate audiences worldwide. By leveraging familiar stories, franchises can tap into the nostalgia and interest of their target audience, ensuring a sure bet for studios looking to mitigate risk.
Familiarity represents the closest thing to a sure bet in today’s challenging market. Audiences recognize iconic characters like Super Mario or Dracula, making it easier for studios to greenlight projects based on established IP. This approach has proven successful across various mediums, including film, television, and video games.
Created by the renowned Japanese video game designer, Shigeru Miyamoto, Super Mario was first released in 1985 for the Nintendo Entertainment System (NES).
The iconic character was inspired by a combination of Mario Segale, an American businessman, and Jumpman, a carpenter who could jump.
The game's success led to the creation of numerous sequels, spin-offs, and merchandise, cementing Super Mario's place as one of gaming's most beloved characters.
Count Dracula is a fictional character and the main protagonist in Bram Stoker's 1897 novel 'Dracula'.
The character is based on historical figures such as Vlad III, also known as Vlad the Impaler.
According to folklore, Vlad III was a brutal leader who impaled his enemies alive.
Stoker's novel tells the story of Dracula's move from Transylvania to England and his attempts to spread terror and death among humans.
The character has since become an iconic figure in popular culture, symbolizing darkness, evil, and the supernatural.
Recent data from Parrot Analytics reveals that existing IP-based content accounts for at least 38% of customer acquisition and 34% of customer retention across the eight major U.S. streaming platforms in Q4 2024. This trend continues to grow as articles, podcasts, and short-films are identified as new atypical funnels of IP.
The medium of underlying IP has broadened over the last decade, allowing studios to successfully condense long-form pieces into shorter formats. The success of Hulu’s ‘The Dropout‘ and Netflix’s ‘Inventing Anna,’ which are rooted in investigative journalism, provides a roadmap for shorter-form written content to translate to the screen.
Literary sources maintain the highest share of IP-based premieres yearly and have held remarkably steady over time. Go books! For example, Harry Potter appeals ‘to all ages and is more easily passed from generation to generation than DC Comics.’ Prequels, sequels, remakes, reboots, or spinoffs still represent the second largest IP source, while manga has risen in recent years as headlined by Netflix’s ‘One Piece.’
DC Comics, originally National Allied Publications, was founded in 1934 by Malcolm Wheeler-Nicholson.
Over the years, it has evolved into one of the largest and most successful comic book publishers in the world.
The company is known for iconic characters such as Superman, Batman, Wonder Woman, and the Justice League.
DC Comics has also been a pioneer in graphic novels, with titles like Watchmen and The Dark Knight Returns receiving critical acclaim.
Today, DC Comics is a subsidiary of Warner Bros. Entertainment.
Video game adaptations now enjoy commercial success after three decades of futility. Hollywood has effectively anointed the medium as comic books‘ heir apparent for blockbuster entertainment. Interestingly, a clear divergence between family-friendly video game films and adult-skewing video game TV series has emerged.
Social media plays a crucial role in reaching younger generations, who are more likely to engage with content on their phones. As Jason Cherubini, co-founder and CFO of film and media production company Dawn’s Light Media, notes, ‘If younger generations aren’t seeing it on their phones, then they’re not seeing it at all.‘
Different platforms leverage different IP to different effect. Disney+ leads the pack with 45% of its library comprising IP-based content, generating more than 60% of its estimated U.S. and Canada revenue in Q4 2024. Apple TV+ boasts impressive efficiency as its 32% IP-based library delivered 54% of its U.S. revenue.
Ultimately, the platforms that succeed are the ones that recognize that not all IPs are created equal. Understanding audience behavior—when they want a one-time event versus a long-term viewing commitment—is key to driving both acquisition and retention.
