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