The Dawn of a Streaming Revolution: Why So Many New TV Services Are Emerging

Over the past few years, there has been a remarkable surge in the launch of new or restructured TV streaming services. Companies like Apple, Disney , Peacock, ESPN , AMC , Paramount , Discovery, and HBO Max are at the forefront of this movement. This wave of services is not random, but rather part of a domino effect resulting from significant industry restructuring.

The Catalyst: Disney and BAMTech

The seeds were sown in 2017 when Disney acquired a controlling interest in BAMTech. This acquisition laid the groundwork for the launch of ESPN in 2018, which was then renamed to Disney Streaming Services. Following the acquisition of the 20th Century Fox catalog and the expiration of their Netflix licenses, Disney unveiled Disney in late 2019. This move was strategic, aimed at capturing a larger share of the streaming market.

ATT and the HBO Max Saga

In 2018, ATT acquired WarnerMedia, bringing with it a host of streaming services like DC Universe and investing heavily in Crunchy Roll Originals. However, the complexity of running a large studio and the unprecedented demand created by the pandemic forced ATT to reevaluate its strategies. They consolidated their content under a single streaming platform, HBO Max, in a bid to simplify operations. Despite these efforts, the lack of preparation and market pressures led to the sale of Crunchy Roll to Sony and the eventual separation of WarnerMedia from ATT in a merger with Discovery. The future of these newly merged entities remains to be seen.

Induced by Major Studios

The restructuring of major studios to focus on their own streaming services triggered a similar trend across the industry. Universal Studios, with its stake in Hulu, recognized the need to align with Disney and sold its share, shifting focus to Peacock. CBS and Viacom Inc. reformed into ViacomCBS, aiming to build upon CBS All Access by transforming it into Paramount . This move was driven by the realization that staying competitive meant offering their own streaming services.

The Apple Play

Apple, with its financial resources and experience in managing other streaming services through hardware, saw an opportunity to capitalize on the growing demand for streaming. Recognizing the trend and the necessity for network players like Disney and Warner to offer streaming services, Apple decided to jump on the bandwagon.

Industry Response

With more and more consumers cutting their traditional cable subscriptions and major players like Disney and Fox, Warner and Turner focusing on streaming, smaller companies and networks felt compelled to follow suit. AMC, with some inroads into existing channel apps and services like Shudder, consolidated these into AMC . Similarly, Discovery, with its various streaming apps requiring cable subscriptions, combined them into the Discovery platform. As ATT and WarnerMedia continue to merge with Discovery, the fate of these services remains uncertain.

Trends and Future Outlook

The trend of industry restructuring towards streaming actually began with Hulu. Hulu Plus, a service offering additional content beyond Hulu, was eventually phased out. However, the idea of providing everything under one platform, including exclusives, stuck. This model has now become the norm for new streaming services.

Other significant mergers are expected to occur in the coming years. Amazon's acquisition of MGM is just one such example. The ongoing speculation about potential acquisitions, such as Lionsgate, adds to the dynamic landscape of the streaming industry.

As the industry continues to evolve, the push for better, more exclusive content will likely lead to further mergers and acquisitions. The streaming landscape is set to remain dynamic and competitive, with new players constantly entering the fray and existing players reorganizing their strategies to stay ahead.

Conclusion:

The proliferation of new or restructured streaming services is not just a fad; it is a strategic response to changing market dynamics. As the industry continues to evolve, we can expect more mergers and acquisitions, driven by the goal of providing the best, most exclusive content to stay competitive in the ever-growing streaming market.