2021 Media Trends: Streaming Looms Large As Entertainment Industry Adapts To Post-Pandemic World

TL;DR

The media industry is at a turning point due to the pandemic, with streaming services experiencing explosive growth, while other sectors like movie theaters and theme parks await the reopening. Content aggregation, subscriber scaling, and cost reduction are key strategies for success.

Transcript

the media industry was in the midst of a major shift before the pandemic and now with covid in our lives for the foreseeable future the streaming media landscape finds itself at a significant turning point as we enter 2021. joining me to talk about the media and entertainment outlook for the year ahead is john harrison he's ey's global media and en... Read More

Key Insights

• 🐕‍🦺 The pandemic has accelerated the growth of streaming services and gaming platforms, while sectors reliant on physical gathering are eagerly awaiting the reopening.
• 🎏 Content aggregation, subscriber scaling, and investment in technology and marketing are crucial for streaming platforms' success.
• 💐 Traditional media companies are navigating the transition from legacy linear models to on-demand streaming, protecting cash flows and making tough decisions on cost reduction.

Questions & Answers

Q: How have streaming services and gaming platforms performed during the pandemic?

Streaming services and gaming platforms have experienced explosive growth, as people have sought entertainment and social connectivity while staying at home. The availability of new and exclusive content has been a major driving factor for their success.

Q: What strategies are media companies using to succeed in the streaming industry?

Media companies are focusing on aggregating desirable and exclusive content onto streaming platforms, attracting individual interest and driving subscriptions. They are also investing in scaling up their subscriber base and continuously fueling the platform with new and fresh content. Additionally, they are restructuring and reorganizing to become more efficient and redirect resources towards growth areas.

Q: How are traditional media companies balancing cost reduction and investment in new content?

Traditional media companies are working to protect the cash flows generated by their legacy linear models while transitioning to the on-demand streaming world. They are making tough decisions regarding cost structures, capital allocation, and debt management. They may also engage in mergers and acquisitions to gain revenue, capabilities, and cost efficiency.

Q: What can investors expect in terms of consolidation in the media industry?

The next wave of consolidation is expected within the mid-tier of networks and studios, as they aim to achieve a similar scale to the major players. Horizontal consolidation is likely to drive much of the activity in the next 12 to 24 months.

Summary & Key Takeaways

• The recovery and reopening, driven by vaccine distribution, will be crucial for media companies that rely on physical gathering of people such as movie theaters and theme parks.

• Streaming services and gaming platforms have seen significant growth during the pandemic, offering new content and social connectivity.

• Successful streaming platforms focus on aggregating exclusive content, scaling subscribers both domestically and internationally, and continually investing in technology, marketing, and fresh content.