Megadeals will take a breather This kind of year after 2018 marked massive consolidation. With Disney supposed to finalize its Fox deal shortly, Comcast focused on Sky as well as AT&T integrating Warner Media, the brand-new group of giants has its hands full.
Amazon, as the item quickly scales its Hollywood presence, is actually likely to look at the remaining independent studios. nevertheless there’s no decisive need for the tech giants to buy a studio, in light of their ability to license content.
However, we could see exceptions in two key areas.
First, once Shari Redstone lands on a permanent CEO for CBS, she could push forward a merger of CBS as well as Viacom This kind of year. as well as second, inside advertising world, look to ad agency holding companies to engage in deal producing as their business gets squeezed by both consulting firms as well as programmatic ad platforms.
nevertheless when the item comes to the smaller players media players, This kind of year they’re likely to stick the item out alone as they feel the pinch of their bigger rivals getting bigger. Discovery will double down on its niche services to lock in super fans of sports such as golf. as well as the companies which don’t develop the scale to create a Netflix rival, as AT&T as well as Disney do, will increasingly focus on supplying Netflix as well as Amazon.
Netflix as well as Amazon need which content because of the transformation of Disney as well as Warner Bros. through suppliers into rivals This kind of year. The corresponding pullback on licensing deals will bolster their own coffers as well as ability to produce more original content. Netflix will face real competition as well as consumers will be pushed to make tough choices.
This kind of year, Netflix will face its first direct competition, through Disney+ as well as AT&T’s brand-new service. Add to which the potential for a recession, as well as many consumers will start picking as well as choosing between the various streaming services. Will Disney+ cannibalize Netflix’s subscriber base thanks to cheaper pricing? Probably not, as the services will be quite different at first. nevertheless if the U.S. heads into recession, something has to give. Even if consumers swap the full TV bundle for a skinny offering, how many additional subscriptions can they maintain? Probably just a few. as well as which threat of overloaded consumers sticking with the one or two services which actually provide value is actually what’s going to drive competition for content.
as well as when the item comes to picking as well as choosing, the traditional TV bundle will lose more subscribers to skinny bundles. Expect traditional carriers such as Charter, Spectrum as well as Dish to suffer subscriber losses through blackouts. as well as blackouts are only going to become more prevalent. Cable companies can’t justify paying more, especially for second-tier channels. Content companies want to either secure higher rates, or convert viewers over to their own streaming services, which provide both higher profits as well as valuable data. HBO’s months-long blackout on Dish Networks is actually ongoing, as well as Spectrum subscribers are still unable to access Tribune channels after a brand-new Year’s eve blackout.