So, What Should We Do About It?
Streaming is here, and we need to embrace it—not push it away. But we also need to use it wisely. Test as much as possible where you can, especially with those platforms that are ad-supported, such as Hulu and WarnerMedia/Discovery. Keep an eye on the platforms that are expanding rapidly, such as Disney+, which is on pace to surpass Hulu’s audience by the end of this year. It’s not ad-supported yet, but if and when that happens, there’s going to be a massive audience opportunity.
It’s also critical to continue to monitor developments in the streaming space and how outside factors will influence those developments. With the rollout and continued expansion of 5G, we can expect vastly improved connection speeds to foster the growth of streaming as consumers adapt to a much better downloading and viewing experience.
Finally, we are keeping an eye out for the next logical mergers and acquisitions in the industry. Pay attention to the media companies who haven’t made big moves recently (like NBCUniversal) and the ones that have merged/acquired on a path to continued growth (like Disney and WarnerMedia/Discovery). CNBC recently released predictions of the next media mergers that make the most sense, and we think there is logic to all of these. It’s worth staying in tune with these companies and their continued evolutions.