March 9, 2023FilmTakeComments Off on Streamers Swiftly Shift Strategies from Content Exclusivity Back to Partnerships
Less than a year ago, the largest content rights holders, including Warner Bros, were hoarding vast libraries of content from third-party licensees for use on their respective direct-to-consumer streaming services, reversing standard practices since time immemorial.
Streaming services are scrambling for new strategies to keep their existing subscribers in a highly crowded domestic market. The level of churn among premium streaming services like Netflix, HBO Max, and Disney+ has accelerated.
After losing over $50 billion on a series of failed forays into content production and distribution, AT&T was forced to start selling stakes in its recently acquired media assets or risk weakening its monopolistic grip on telecom and internet delivery.
As a result of diminishing content availability precipitated by production delays and cancellations, there will be large programming gaps for traditional television networks and OTT platforms to fill over the next two years.
AT&T is desperate to sell some or all of DirecTV to pay down its $180 billion mountain of debt. According to inside sources, the satellite service is being offered at a $20 billion valuation, marking a $29 billion loss since 2015.
AT&T’s WarnerMedia released details about its forthcoming streaming service HBO Max, which will officially launch in May 2020. The service will cost $14.99 a month, the same cost as HBO’s flagship service.