The rise of streaming video platforms like Netflix and Amazon Prime has upended conventional energy balances in Hollywood and is reorganizing the best way we devour movies and TV collection as customers.
Following her discuss on the current Banff World Media Competition in Canada, I interviewed Laura Martin, the senior analyst overlaying leisure and web shares at main funding financial institution Needham & Firm, to kind out how the items are shifting on this chess recreation between content material creators, streaming providers, customers, and authorities regulators.
We focus on why Netflix continues to be liable to a downfall, the impact of EU content material quotas, why Martin thinks regulators ought to break up Google, and why video streaming and recreation streaming are more likely to merge into the identical subscription merchandise.
Right here is the transcript of our dialogue, edited for size and readability:
Eric Peckham: There’s an optimistic case that the rise of on-line video streaming is a win for each customers and content material creators as a result of it creates an enormous panorama of content material platforms. Onstage in Banff, you argued that the variety of content material platforms (and thus the variety of content material patrons) will the truth is shrink. Why do you see it going that course?
Laura Martin: There are 4,000 video apps on the Roku platform as we speak (and equally on Samsung and on Amazon Hearth). What you’ll see is a consolidation within the trade as we get huge gamers just like the Walt Disney Firm, AT&T, and Apple coming into the DTC enterprise with huge, deep pockets. Though we have now extra patrons of content material as we speak, it’s driving costs up.
It’s doubtless that the massive gamers are simply battling out between themselves, placing smaller gamers out of enterprise. Over a 10-year time-frame, I count on simply three or 4 winners, and that can carry extra self-discipline again into the monetary points of the enterprise.
Peckham: What’s going to separate the winners from the losers right here?