The old balance of power in the media industry has crumbled and burned. Ever since AT&T stated its intentions to buy Time Warner, media companies and investors have been scrambling to make deals and solidify their position in the industry’s rapidly changing power structure.
The chaos is underpinned by broader changes affecting the media industry. Streaming, evolving consumer and advertiser preferences, and changing distribution rights have sent the entire industry into a flurry of deal-making.
Here are the latest developments in the Game of Thrones-like battle for media supremacy: Comcast and Verizon are both attempting to buy portions of Fox. And the Net Neutrality order looks set to be reversed by the FCC.
“The one take away is that the media industry is facing real pressure,” said a tech analyst for BTIG, Rich Greenfield, “You’ve got cord-cutting, ads moving to mobile, etc. None of these companies has been prepared for that.”
According to Mr. Greenfield, changing developments in the way people consume media and accept its distribution is finally forcing media giants to the table. It’s clear that Greenfield is not alone in having this idea.
“No matter how big you are, tech and user behavior throws it all off,” said the managing director for Digital Capital Advisors Elgin Thompson. “Unless you are the full ecosystem, you’re not an emperor. These companies want to be so big they can create their own weather.”
Source: Business Insider