Big media companies may fundamentally reshuffle their portfolios, estimates Erika Luzsicza based on current developments.
Believe It or Not was one of the iconic series of the 1990s. When browsing foreign news from the TV and streaming industry, readers can easily feel like they are in that show. For once we read how streaming platforms are at an all-time high, especially in the US, as the media wrote a few weeks ago. But this is countered by research that claims, for example, that both Netflix and Disney are surpassing Youtube in US viewership. The news from Netflix also brings confusion to the industry, where it is not easy to decipher how their advertising pillar is doing. Second quarter earnings figures vaguely say they are supposedly having success. However, there's nowhere to read exactly what that means. That is, what is the ratio in the subscriber base with and without advertising.
On the contrary, we know from the published figures and the individual statements of the companies concerned that Netflix's competitors are not doing well. And both Warner Bros. Discovery, for example, as well as the surprising words of Anjali Sud, CEO of Tubi (owned by Fox Corporation), who openly said that Tubi is still not making money because it is an internal decision to invest back into the platform.
So what's going on with the media giants? For example, the CEO of Sony, among others, predicts that the entire industry is in for turbulence and earthquakes in the form of mergers and acquisitions in the next two years. And he is certainly not alone. It is clear from the regular mix of news that market consolidation is more than logical for the future.
A solution will probably have to be found with the debt-laden Warner Bros, where, among other things, the recent loss of the NBA broadcast rights can be seen as a major obstacle in the fight for customers. One hypothesis that has been offered is the splitting up of the various parts of the entire media group. It would not be surprising if, for example, Apple bought the movie studios, HBO and CNN. This would mean that an investment company could then be interested in the remaining parts.
Similar considerations could be found for other film studios and platforms. And, of course, it cannot be ruled out that Netflix itself would look for one of these players. Indeed, the giant has already surprised this year by buying sports broadcasting rights, despite having refused to do so for years before.
Those who loved the series Succession also suspect that big changes can be prospectively expected at Fox Corporation as well. Indeed, the ongoing trial of the Murdoch clan will significantly affect the direction of the entire group.
Equally interesting to watch will be the gaming sector, in which some streaming platforms have already invested. The events surrounding Nintendo will certainly attract attention. It is therefore a logical consideration that the Japanese game console maker could buy Roblox. Indeed, the Nintendo Switch device would need to consolidate with this particular gaming platform. And the reverse is also true, meaning that Roblox would benefit from a merger with someone like Nintendo. This is especially considering that the competing Minecraft, under the wing of Microsoft, is very popular with kids under 12. And Nintendo would be well suited to tap into that age bracket as well.
Source: mediaguru.cz
