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29 Apr

Telecom Forecast Predicts a Tough Time Ahead for Leaders

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Recent studies on the major studio groupings and pay-TV companies reveal that there will probably not be any significant growth in their businesses. The only group that is projected to show considerable growth at this point is Netflix®.

One of the best internet service providers currently in business, AT&T® recently splashed out $85 billion to bring Time Warner® under its umbrella. Disney, meanwhile, acquired 21st Century Fox® for $71 billion. The owners of NBC-Universal®, Comcast®, purchased Sky® for $39 billion on European soil. Each of these three groups will see some effect from their huge spending as they are set to face a dry period economically. It is said that these purchases are set to hamper their efforts to attain more ground in the existing market in the streaming business.

The reports suggest that AT&T® will have a difficult time spreading its image in advertising. However, Comcast® is set to perform impressively outside the US territory in pay-TV and advertising, but might fall short in its hunt for SVoD subscribers. Disney® holds a strong ground along with ESPN+, but it too is set to face an uphill struggle in SVoD.

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The reports say that by 2014, Netflix® would become the most dominant player in the streaming domain. It is projected to earn more revenue in streaming than the three-telecom giants combined. Its market share is predicted to drop from 63 % as of 2019 to 52 % in 2024. This, however, would not stop it from claiming and holding top position.

The huge success of Netflix® has raised several questions regarding the Hollywood studios’ strategies to stay in the game. There have been several doubts on Netflix® being able to hold its dominant status on several platforms. On the other hand, it has brought the content strategies of the three big companies under the scanner. Companies like Facebook® and Apple® would also have to stay on top of their game to hold strong against Netflix®’s domineering approach.

Most of these companies would survive, but being successful is certainly not a matter that changes overnight. Comcast® and AT&T® would continue to rely on their cheap internet and cellular revenues for growth.

The big three are known to have a huge reserve of content which will keep them afloat in their respective areas. However, they would definitely struggle to become the dominant name. Disney® is projected to reach 96.5 million subscribers at the climax of this forecast period, which would take its tally to 12.5% across the world.

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