10 Outlook on the media industry in the new year
Peter Csathy is the president
of CREATV Media, a media and media consultant and author of "Media 2.0
(18): An Inside Guide to Digital Media Today and Where Things Go".
More jobs for this contributor
Ten predictions for digital
media in 2018
Netflix must be afraid of the
Disney OTT game
It was 2018 years of massive
mergers and acquisitions, with AT & T / Time Warner, Disney / Fox and
Comcast / Sky. #MeToo led the headlines, and the passion for board discussions
about Hollywood and beyond was fear ... a lot of fear in our world of
technology from the media and entertainment (and the world itself).
So what do you expect in 2019?
Here are some stories that
will make the entertainment world next year and pave the way for twenty years
of the media industry.
Prediction # 1 - The blood
flow continues in an unrelenting battle between the leading OTT video giants,
where Apple and Disney join the video sharing and add to the epic attack on
Netflix. In the middle of it all, smaller "specialist" players find
their individual voices that attract Vandum and wider Tzila, or risk being
marginalized and swallowed up by their strategic investors (for a fraction of
what they would have ordered two years back).
The originals are still the
primary weapon used in the live streaming interface of subscription videos, the
expansion of the new "golden age" for media creators and increased
development and production costs associated with content (including price tags
for the A-list talent). VTC's competitors are increasingly using the Internet
on a massive and defensive level, such as Disney's retention of the Netflix
crown awards (Star Wars, Pixar, Marvel, Princesses, X-Men and Avatar). Netflix,
like its investors, feels heat, as the team of Netflix-Killers puts increasing
pressure on its pure business model.
At the same time, the new
expanded list of virtual distributors (distributors of multi-channel video
programs) identifies their initial disadvantages, provides consumers with a
real competitive option, and accelerates further cutting of the consumer cord.
While we started 2016 through 2-3 real and viable options in the United States
for direct television, as of 2019, consumers can now reach nearly 10 (Cable,
Satellite, Hulu Live, YouTube TV, DirecTV Now, Sling TV, PlayStation Vue,
fuboTV, etc.). Even in these national times, let's not forget the world's great
players like Tencent, Alibaba or Baidu's iQIYI, which were published in US
markets last year.
In the midst of this battle of
video giants, many "specialized" or provincial-focused video players
either quickly find their uniquely exciting voice, build a multi-currency brand
that defends morale, or simply gets lost in noise.
FILE - On June 27, 2015, the
image of the Hulu logo file appears on a window in New York's Milk Studios
area. Hulu said on Monday August 8, 2016, that the company was dropping free TV
episodes, which were initially known for launching a copper package of
television broadcasts. (AP Photo / Dan Goodman, File)
Prediction 2. Mergers and
acquisitions that rely on the media continue to dominate today in all sectors.
On the video side, both traditional and poorly performing media companies and
new media companies suffer from the underdeveloped OTT video sector and become
logical targets for mergers and acquisitions.
M & A is a feature of
digital multi-platform digital media and entertainment. Just as AT & T
closed its acquisition of Time Warner ($ 85 billion), Disney responded to
Comcast to acquire Fox Entertainment assets in 2018 ($ 71.3 billion). Comcast
signed again and got Sky ( ($ 39 billion). SiriusXM acquired the remaining 81%
of Pandora, which it did not already own ($ 3.5 billion), expected larger deals
in 2019, as well as a number of smaller but still significant deals. Viacom /
CBS is a potential candidate.
And not just within the
borders of the United States. There is no virtual wall in the new media world
without borders, which means that the pace of mergers and acquisitions will
accelerate at the international level as well. Remember that the Comcast / Sky
deal represents a great US ambition to expand dramatically in several European
regions. Many giants around the world are hoping to expand their views to
places that have never been seen before.
To be clear, not all mergers
and acquisitions will flow from weakness. Sometimes, the numbers displayed are
simply too high to be rejected. But do not make mistakes. Weakness and
abundance
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