Streaming services had a very rough 2022. Get ready for multiple business casualties, and a few winners, writes Jason Kilar, the former CEO of WarnerMedia.
Expect two or three major mergers and/or acquisitions involving entertainment companies in the coming 24 months as a result. Given the unusually large addressable market and the relatively fixed cost of content at scale, I believe the streaming cash flows of the leading companies will eventually be north of $10 billion a year, far greater than what most entertainment companies have each historically generated. For a precious few, the considerable investment will be well worth it.
Sports leagues have the opportunity to increase their audiences by avoiding channel exclusivity and insisting on dual distribution of each game across the cable bundle and streaming. Expect a more aggressive focus across the globe toward free ad-supported models delivered over the internet. There will also be continued evolution at the cineplex, as theaters seek to strongly differentiate a great night out at the movies from an evening on the couch.
A gift shop at Disney World in Florida. Disney developed the strategy of cultivating relationships with fans in a variety of ways, something that can become more personalized in a digital world.One of the most exciting prospects of the leading entertainment companies in the next century will be the ability to superserve fans in ever more differentiated and personalized ways digitally.
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