Media Insiders Expect Some Streaming Platforms to Combine, Close in Coming Years as Traditional TV Fizzles
There is no question that the entertainment industry is in the middle of a monumental shift in how viewers consume content. While it might be difficult to predict the future, or even understand the past, when the entire landscape is in the middle of constant upheaval, it is always a good idea to pay attention to what certain experts have to say about what the future holds.
Recently, CNBC talked to several top media insiders about what consumers’ viewing experience will be like over the course of the next three years. While opinions were varied, most agree that legacy broadcast and cable TV will continue to diminish from its already weakened state, but few think that it will fizzle out altogether.
The entertainment insiders who gave their predictions included former CNN president Jeff Zucker, former Warner Bros. chairwoman and CEO Ann Sarnoff, the founder of The Ringer Bill Simmons, Candle Media’s co-CEO Kevin Mayer, and Entertainment Studios founder, and Allen Media Group founder and CEO Byron Allen.
“It will continue to exist,” said Zucker in regard to traditional linear TV. “Obviously it will have fewer subs than it does today. News and sports will keep it alive.”
There is certainly a case for news and sports remaining as the anchor to keep consumers tethered to traditional TV, but with more sports leagues signing deals with streaming services, that too might be dwindling.
While the opinions were varied when it came to what exactly streaming will look like in three years, several people told CNBC that they believe that companies like Amazon and Apple have a strong shot at becoming the dominant hubs for streaming. This is a logical prediction since both Amazon and Apple are not primarily media companies, which means that they don’t operate on the same metrics as Disney, Paramount, and others, who are driven by the success of their media content.
Amazon’s investment in streaming is ultimately to supplement its traditional retail business, while Apple is investing in streaming as a complement to its devices business. That is why not only do all Apple products come with a free subscription — for varying lengths of time — to their TV, music, fitness, and games services, but these products make it easy for viewers to navigate between them when watching a show or movie.
“They make it so goddamn easy; their main page allows you to order movies, see all the new releases, see where you left off on any show or movie you were watching on every other platform,” said Simmons.
When the insiders were asked which streaming services would definitely exist three years from now, the resounding agreement was that the already established and successful services with extensive content libraries like Netflix, Disney+, Prime Video, and HBO Max will still be going strong, with Apple TV+ and Paramount+ (or some version of it) also likely in the mix.
These responses mirror those of multiple industry execs, including Jason Kilar who was responsible for launching Hulu, HBO Max, and other major streaming services. He has repeatedly said that there will be significant attrition in the streaming industry, leading to only a handful of major platforms. Kilar believes that Netflix, Disney (likely in a merged Disney+ and Hulu format), and Warner Bros. Discovery (again, in some form of HBO Max and discovery+ configuration) will be the services left standing; although, he puts Apple TV+ and Prime Video aside, because of their dual-business focuses.
Several respondents predict that some of the newer, less established streaming services might merge with each other, or be incorporated into larger services within their respective corporate structures in order to compete with what the established services offer.
“Paramount+ will be folded in, Peacock will folded in,” Mayer said. “Maybe they’ll be combined with a smaller service like Starz.”
When asked what will become a television trend over the next few years, the answers included everything from increased incorporation of AI to gambling directly through your smart TV. But all answers involved ideas that included innovation and expansion in how the viewers absorb media.
“I think AI is going to help understand the touch points in content and how to make it better and more compelling and engaging,” Allen said.
Former Warner Bros. boss Sansoff sees a world where streaming shifts into an all-encompassing consumption platform of sorts.
“A ‘metaverse’ which offers commerce, gaming, social interaction, sports, news and entertainment is inevitable,” she said, “but I think we’re quite a ways from that being the primary way people consume media.”
While Sansoff says we are likely quite a ways off from an all-encompassing metaverse, there are some signs that her theory is on the right track. Interactive ads are becoming more commonplace and in some ways we are already experiencing this shift in how we approach not just entertainment programming, but much of our day-to-day lives.
Whatever the future holds for entertainment, there is no doubt that innovation will be at the core of whichever streaming services survive. While the era of consolidation and bundling is upon the streaming world, it would behoove many across the industry to heed the advice of these experts when it comes to securing the future of their services.