'Streaming Wars': The Fierce Competition in the Streaming World

Driven by the rise of streaming services, entertainment companies fiercely compete to adapt to new forms of consumption. While they used to invest in different platforms, there is now a trend towards consolidation to provide subscribers with a better experience. Amid this battle, the question arises: how long will this war last and how far will it go?

Streaming companies initially launched individual platforms to capture different market segments. However, with increased competition, the strategy evolved towards mergers and acquisitions to strengthen their position and diversify their content. Between 2019 and 2021, giants like Paramount Global and Sony Group Corporation acquired platforms such as Pluto TV (with a presence in 30 countries in the Americas and Europe) and Crunchyroll (available in 248 countries and territories), respectively, expanding their reach and diversifying their offerings. It is also worth noting The Walt Disney Company’s acquisition of 21st Century Fox, which led to the launch of Star+ (with a presence in 18 Latin American countries). 

The current trend leans towards unifying services under a single entity and simplifying the user experience. Recent examples include the merger of WarnerMedia and Discovery Inc., which launched Max in 2023, the combination of Paramount+ and Showtime in the United States, and the announcement that The Walt Disney Company will release an app in this same country that combines the content of Hulu and Disney+. 

These mergers reflect a positioning strategy. By absorbing companies, they ensure the elimination of competition, boost their growth, and expand their reach.

In the landscape of the TOP 5 companies with the most active streaming services, their global reach and service diversification strategy stand out. These companies strive to meet the multiple needs and preferences of users. Their approach demonstrates a commitment to providing personalized and engaging experiences for a diverse audience. 

Major players in the entertainment industry seek to conquer streaming through platform consolidation. This can lead to an oligopoly and pose challenges in terms of competition and content diversity. However, it also provides opportunities to create more comprehensive and high-quality streaming experiences. As the ‘Streaming wars’ continue, we can expect further evolution in how we consume audiovisual content. 

In addition to industry giants, other participants in the streaming world are adopting innovative strategies through mergers and acquisitions. These include Globoplay, which has integrated the prestigious Brazilian football club Flamengo’s OTT platform, and DTV in Japan, which has transferred its content to Lemino, resulting in the disappearance of the original platform. New players such as Telered, with its own TV Everywhere service, and TRT, the Turkish broadcaster, planning to launch a platform in markets spanning Europe, Latin America, and the Middle East, are joining the competition. These actions highlight the ongoing evolution of the streaming market, which has witnessed the launch of over 30 new platforms in just the first half of 2023. 

Mergers and acquisitions have been driven by competition and the pursuit of greater market share. While they simplify the user experience by providing access to a wide variety of content under a single platform, they also generate challenges such as constant app changes and content fragmentation. Companies must minimize disruptions in the user experience and find a balance between simplifying the experience and preserving access to desired content. 

The ‘Streaming wars’ do not seem to have a short-term end in sight. As the market evolves, we are likely to see more integrations, acquisitions, and new participants. However, companies must navigate this ever-changing landscape with caution, balancing the simplification of the user experience with the preservation of content diversity. The future of entertainment looks promising, with increasingly consolidated and high-quality platforms.

ABOUT BB MEDIA 

BB Media is a global Data Science company, specializing in Media and Entertainment for over 36 years. BB Media monitors +4,500 streaming services in +250 countries and territories, their prices, plans, packages and commercial offers. In addition, all film and series catalogues, including standard metadata. Streaming services, networks, programmers, cable operators, agencies, advertisers, studios, distributors, content APPs and technology companies rely on BB Media’s information and value-added analysis to make strategic decisions.    

BB Media has offices in USA, Argentina, Brazil, Mexico, Colombia, Ecuador, Italy and the Netherlands.

Source:  

BB Media – Multiscreens+ | Platform Essentials – June 2023  

BB Media – Content Tracker – June 2023