If the pay TV model is broken and streaming is at a premium, what’s at stake for media companies and the millions of viewers they serve? To help you understand what is going on in media and what we expect to happen in the future, our highly experienced iBestTravel team will keep you abreast of the latest developments and forecasts. You’ll get all the latest news first, as we will publish many (but not all) of the forecasts a few days afterward.
Though Charter’s contentious battle against Disney has been resolved, it marks a turning point for the television industry. Big media companies are no longer in the driver’s seat when it comes to traditional cable and pay TV.
Even the most dominant media companies have lost sway over cable providers such as Charter, Comcast, and AT&T. In the past, Disney could leverage its content, notably its flagship ESPN channel, to reap increasingly big fees from cable companies for the right to carry the stations in their pay TV bundles.
Though still profitable, cable subscriptions are shrinking, with no end in sight. Providers such as Charter reap fat profits from selling internet service, which customers continue to pay for even if they ditch television. Recently, Charter’s fight blacked out Disney channels to millions of its customers for a week, while the company promoted web TV options as an alternative. Charter’s CEO didn’t back down, calling the pay TV model “broken.”
The ongoing struggle illustrates that even powerful media companies are on the ropes, dealing with cable losses, a weak advertising market, and the high costs associated with streaming services. Consequently, media companies may need to offer more concessions to pay TV providers in the future.
This forecast provides valuable insights into the changing landscape of media and the implications for both companies and consumers. Keeping up with these trends is essential for making informed decisions regarding investments and viewing preferences.
