Binge-watching series and downloading music files — the biggest growth among the 100 most valuable global brands!

 

Netflix is slowing down after a 73% increase in brand value (reaching a value of USD 20.8 billion), moving up 31 places in the ranking.
In the face of pressure from OTT services, brands are forced to merge beyond traditional categories, fighting for viewers' attention.

Binge-watching series and downloading music in digital form are responsible for the growth of entertainment brands such as Netflix, Google, Apple and Amazon, which are capturing the market and catching up with traditional telecommunications providers, i.e. BT and AT&T, trying to satisfy consumers' appetite for original entertainment content.

OTT services revolutionize the market

The fact that consumers use OTT services shows changes in habits related to watching television content. Brands are trying to connect with others, entering into partnerships and creating new purely entertainment sub-brands, such as Apple Music, Amazon Music, AT&T DirecTV Now or Google Play.

The power of Netflix

Among brands dealing exclusively with entertainment, Netflix (No. 61 among the 100 most valuable brands) enjoys a unique position, achieving a 73% increase in brand value (and a value of USD 20.8 billion), moving up 31 places in the BrandZ ranking of the 100 most valuable global brands. With access to invaluable consumer data, Netflix is able to personalize the services it offers to a growing number of 125 million subscribers and provide them with great content, convenience and a unique brand experience. Benefiting from the growing market for entertainment delivered over the internet, Netflix plans to spend USD 8 billion on original programming, including preparing 30 productions in local languages in various countries around the world, and becoming an attractive brand on the international stage.

"OTT services are changing the rules of the game in media, at a time when television networks and internet platforms delivering video content are fighting for market share. Brands trapped within low-growth categories, such as telecommunications brands, had only one way out of the situation — to go beyond traditional category frameworks and, in various roles, take on content delivery and the fight for viewers and listeners." — says Peter Walshe, responsible at Kantar Millward Brown for the global BrandZ ranking

Telecommunications provider AT&T (No. 10 among the 100 most valuable brands) is awaiting a final court decision on its proposed merger with Time Warner worth USD 85.4 billion, which would enable the company to compete directly with other players such as Disney (No. 19) and Netflix, and to actively participate in the rapidly changing entertainment and telecommunications sector.

Strategic partnerships

Strategic brand partnerships

At a time when brands are competing for viewers' attention, opportunities are opening up for other companies forming strategic partnerships. Alibaba (No. 9 among the 100 most valuable brands and the second fastest-growing brand — achieving a 92% increase in brand value), in cooperation with Disney, strengthened its position in the field of media and entertainment, and established itself as the largest distributor of Disney animations in China.

YouTube (No. 51) recorded a 37% increase in brand value, reaching USD 23 billion, and reaching over 1.5 billion users watching their favorite content on popular internet channels. Recently, in cooperation with Ticketmaster, it offers people interested in music events information about tickets and concert tours directly from the video pages of their favorite artists. The new OTT service — YouTube TV — will have exclusive coverage of Los Angeles Football Club (LAFC) matches. YouTube is introducing further innovations to its brand — among others, it created the YouTube Go app, a mobile version of the platform that can be used in emerging markets where there may be problems with a stable internet connection.

Both Google (No. 1) and Apple (No. 2) are operating in line with the direction of changes in the entertainment sector and offer streaming services, competing with Spotify and Amazon Music. Apple Music offers music streaming, live radio and a place where music fans can connect with their favorite artists. Google recently introduced YouTube Music, which replaced Google Play Music, and confirms its capabilities in the field of video content transmission and as an on-demand music platform.

Trends from this year's global BrandZ Top 100 ranking

  • Intelligence-based marketing, including artificial intelligence (AI) and augmented reality (AR), allows brands to 'flourish' and constantly meet consumer needs.
  • JD.com and HP reappear on this year's list. They were previously present in the BrandZ Top 100 ranking in 2016. American telecommunications giant Spectrum (No. 27) brought new players into the ranking, including Uber (No. 81) and Instagram (No. 91). The fastest-growing company in last year's ranking — Adidas — jumped to 100th place. This year's BrandZ Top 100 ranking also features an Indonesian brand for the first time — regional bank BC, which reached position No. 99.
  • Partnership and cooperation used by brands to maximize performance turned out to be a key issue. Leading brands continued to raise the bar when it came to expected consumer experiences at all points of contact — both online and in the 'real world' — starting from the first experience with the product through to its collection or delivery to the consumer — thereby striving to create strategic and long-term forms of cooperation.
  • We are observing significant growth in retail brands — it is the fastest-growing category, achieving a jump in value of +35% over the last 12 months.
  • Technology brands still dominate the market. In the 'brand battle' they account for more than half (+56%) of the total value of all players in the BrandZ Top 100 list.

Summary

Netflix, reaching a value of USD 20.8 billion, records 73% growth and moves up 31 places in the BrandZ Top 100 ranking, planning to spend USD 8 billion on original productions, including 30 local titles. OTT services such as YouTube (USD 23 billion) and new Google and Apple platforms are changing the rules of the game in media. Telecommunications brands such as AT&T must go beyond traditional categories, and symbiotic partnerships (Alibaba with Disney) are becoming the key to success in the fight for viewers.