Consolidation is usually the future of the media industry, the chief executive of the entire world’s largest advertising agency told CNBC Thursday.
WPP CEO Martin Sorrell discussed disruptions taking place from the market as major technology companies are putting what he sees as pressure on traditional content producers.
“We’re seeing certain pressures, technological modifications from the long-term, along with shorter-term pressure, along with This particular is usually driving consolidation,” Sorrell said.
Amid quite a few consolidations taking place or being deliberated, like the recent Comcast bid for U.K. broadcaster Sky or the potential merger of AT&T along with Time Warner, Sorrell said in which more than anything these developments are evidence of massive modifications taking place in media as well as in his own industry of advertising. along with many of those disruptions are being led by what he called the “fearsome seven.”
“The pressures in which Amazon, Google, Facebook, Microsoft, Netflix, Alibaba, Tencent — the ‘fearsome seven’ if you take the top a few companies plus the two Chinese companies — those pressures are causing consolidation,” the CEO described.
“On the content side, companies like Netflix along with Amazon can pay significantly higher sums for an hour of content than traditional content producers. along with in which has created modifications from the market, some would certainly say distortions from the market, in which are driving This particular consolidation.”