Since all observers agree the linear TV (“live TV”) subscription business is dwindling, we should expect consolidation of service providers, as that happens in virtually all declining industries. The objective for such moves is to reduce cost and harvest profits for as long as possible.
The most-recent example is the new joint venture combining live TV assets owned by Disney (Hulu+Live TV) with Fubo, where Disney will own 70 percent of the asset, but Fubo leaders will manage the business.
Both the Fubo and Hulu+Live TV brands will continue to exist and be marketed.
But that will not be the end of the consolidation, as other assets eventually are combined. The logical combinations (assuming antitrust issues are addressed) are cable assets merging or satellite assets being combined. The other logical move are combinations of streaming assets.
Just as discussions about future mergers of linear video programming assets (“cable channels”) now are happening, so too will distributor mergers have to happen, as the market continues to shrink.
Like it or not, linear video content and distribution assets now are cash cows to be milked as the category inevitably declines.
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