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Barclays predicts the winners and losers of streaming TV’s next phase, as services like Disney Plus launch and new bundles emerge


FILE PHOTO: Reed Hastings, co-founder and CEO of Netflix, gestures during an event of the Fundacion Telmex Mexico Siglo XXI (Telmex Foundation Mexico XXI Century) in Mexico City, Mexico, September 6, 2019. REUTERS/Edgard Garrido

The next stage in the cord-cutting revolution could see streaming services like Netflix and Disney Plus bundled alongside one another, not too differently from the way TV channels are today, analysts at Wall street firm Barclays predict.
The shift could radically change things for the streaming, media, and telecom companies that support the streaming ecosystem today.
Comcast and Netflix are likely to be winners in this scenario, the analysts say.
The legacy media brands like Disney and Discovery that are going over the top will be on the losing end.
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Get ready for the re-bundling of TV.

The next stage in the cord-cutting revolution could see streaming services like Netflix and Disney Plus bundled alongside one another, not too differently from the way TV channels are today, analysts at Wall street firm Barclays predict.

The proliferation of streaming-video services, including upcoming offerings like Disney Plus, Apple TV Plus, and Quibi, will likely lead to a rebundling of platforms, alongside the broadband or data services that allow people to access them, the analysts wrote in an October 2 note.

Envision an internet provider like Comcast selling a broadband service along with access to a selection of streaming apps — like Netflix, Amazon Prime Video, and the upcoming NBCUniversal platform, Peacock — for a flat rate each month. It’s the next logical step, the analysts say, as people consume more video over the internet and more streaming platforms hit the market.

Already, platforms like Apple and Amazon are selling streaming subscriptions through their apps to create a central point of billing and interface to access the services through. Media companies like Disney are also starting to bundle their various offerings streaming offerings.

The shift to incorporate broadband services in the bundle could boost adoption of those packages, and radically change things for the streaming, media, and telecom companies that support the streaming ecosystem today.

Here are the winners and losers, as Barclays sees them:

The winners:

While tech companies like Apple, Amazon, and Roku are reselling streaming services á la carte, the analysts at Barclays think the companies best positioned to bundle streaming services are internet- and data-service providers like Comcast and Verizon.

Among those providers, only one has really invested in building products to enhance the broadband-streaming bundle, the Barclays analysts argue.

Comcast is in the best position to win with bundles.

To win in aggregation, the analysts at Barclays think resellers of streaming services will need to offer more than discounts on price.

Comcast, one of the biggest internet providers in the US, also offers broadband customers a free streaming-TV box, Flex, with a collection of movies and TV shows licensed by Comcast, as well as access to streaming subscriptions, like Netflix and Amazon Prime, and apps like YouTube.

It brings streaming content from a variety of sources into one user interface, so audiences don’t have to change apps to switch between streaming Netflix’s “Stranger Things” or Amazon Prime’s “Jack Ryan.”

“A device such as Flex has larger ecosystem implications,” the Barclays note said. “We believe it allows Comcast to …read more

Source:: Business Insider

      

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