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Introduction

Megamergers of traditional media companies and unprecedented competitive pressure from scaled, multinational digital platforms, namely Facebook, Amazon, Netflix, and Google (FANG), are rapidly reshaping the entertainment industry.

Highlights

  • Skinny bundles will solve pay TV's problems with subscriber growth, but ARPU and revenues will suffer.
  • Ongoing TMT megamergers will concentrate content spending across fewer platforms, owned by a handful of global giants.
  • Alliances to jointly launch and operate OTT platforms will help broadcasters compete more effectively for AVOD market share.

Features and Benefits

  • Analyzes the impact of media megamergers on the competitive landscape.
  • Assesses prospects of broadcaster-led initiatives to create OTT platforms aggregating content from multiple broadcasters.

Key questions answered

  • How much will the supersized media companies emerging from the current wave of M&A be able to spend on content?
  • Will skinny bundle growth compensate for declines in traditional pay-TV revenues and subscriptions?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for service providers and platforms
  • Recommendations for content providers
  • Recommendations for technology vendors

Skinny bundles will offset challenges to pay-TV subscriptions, but not to revenue

  • Survival amid pressure on pricing and from D2C launches
  • The implications for premium visual entertainment distribution

Supersizing content investment

  • Most of the world's Anglophone content will be created by a handful of gargantuan companies
  • The shift to owned-and-operated D2C video platforms

FANG competition drives broadcasters to cooperate to compete

  • Broadcasters acknowledge that going it alone with OTT video isn't working

Appendix

  • Methodology
  • Author

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