As much as video streaming has changed business models, there are some things it has not yet changed. At a high level, video entertainment and audio entertainment has been moving toward on-demand consumption for decades; virtual rather than physical media; unicast rather than multicast delivery.
But some things have not changed as much as observers say. Despite the virtually-universal description of AT&T’s ownership moves related to content, AT&T continues to own 71 percent of Discovery Warner Media. The results of that business are not fully consolidated, but AT&T reaps the reward of cash flow and profits related to that organization's success.
In other countries different connectivity providers will have their distinct asset ownership profitles as well. But is is incorrect to say AT&T “has gotten out” of the content business. It has monetized some of its ownership and changed the way it continues to own such assets. But it still owns 71 percent of Discovery Warner Media.
A few of us still believe that will be important, going forward, even if it is correct to say AT&T now can concentrate on its connectivity business with less distraction.
But some things in the video content business have not changed. Subscriptions still dominate over full on-demand access. Content bundles still prevail over full a la carte access. Content catalogs still matter.
What might be distinctively new is that the video content business has become globalized. No longer does it make as much sense for any content provider to operate in a single country, as streaming economics are vastly better on a global scale, as is true for most consumer-facing internet apps and services. The most-successful content services will operate globally.
But bundles of content remain key, even if the delivery mechanism has changed.
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