Megadeals will take a breather This specific year after 2018 marked massive consolidation. With Disney anticipated to finalize its Fox deal shortly, Comcast focused on Sky along with 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 usually likely to look at the remaining independent studios. yet 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 along with Viacom This specific year. along with second, inside advertising world, look to ad agency holding companies to engage in deal producing as their business gets squeezed by both consulting firms along with programmatic ad platforms.
yet when the item comes to the smaller players media players, This specific 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. along with the companies in which don’t hold the scale to create a Netflix rival, as AT&T along with Disney do, will increasingly focus on supplying Netflix along with Amazon.
Netflix along with Amazon need in which content because of the transformation of Disney along with Warner Bros. via suppliers into rivals This specific year. The corresponding pullback on licensing deals will bolster their own coffers along with ability to produce more original content. Netflix will face real competition along with consumers will be pushed to make tough choices.
This specific year, Netflix will face its first direct competition, via Disney+ along with AT&T’s brand new service. Add to in which the potential for a recession, along with many consumers will start picking along with 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. yet 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. along with in which threat of overloaded consumers sticking with the one or two services in which truly provide value is usually what’s going to drive competition for content.
along with when the item comes to picking along with choosing, the traditional TV bundle will lose more subscribers to skinny bundles. Expect traditional carriers such as Charter, Spectrum along with Dish to suffer subscriber losses via blackouts. along with 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 along with valuable data. HBO’s months-long blackout on Dish Networks is usually ongoing, along with Spectrum subscribers are still unable to access Tribune channels after a brand new Year’s eve blackout.