BREAKING: Potential Merger Among Streaming Giants
Axios reports that Paramount Global and Warner Bros. Discovery CEOs have met to discuss a possible merger that would create a news and entertainment giant. This potential merger could trigger further industry consolidation between entertainment companies. The companies have the potential to combine streaming services, Max and Paramount+, which could shake up the streaming landscape, and intensify the rivalry with other streaming platforms like Netflix and the Disney (including Hulu and Disney+). As more users cut the cord and turn to streaming, this opens opportunity for growing both companies’ presence and, in turn, increasing ad dollars and subscription revenue.
We’ve seen cord cutting on the rise and the number of streaming services that users subscribe to also increase in the past years. However, free ad supported streaming services have also grown in users and watch time, indicating potential budget constraints amongst those that stream. The question remains, how many services are users willing to pay for? This is where consolidation comes in. With this potential merger, and others on the horizon, the users will have access to more content with less subscriptions, and advertisers will have access to more users across less streaming platforms. Advertisers are likely excited about this opportunity (but, not holding our breath), always looking for new ways to reach our target audience and the ever-elusive cord cutters.
The days are gone of learning of new streaming services pop up what feels like every other day. As advertisers, we’ll be on the edge of our seats (with popcorn) to see where the Wild West of streaming goes next.