But how will this impact you, the services you use, and the content you consume? Here are the details of the acquisitions, as well as what it means for the future of streaming services.
MGM is responsible for classic catalogs like the James Bond franchise, but it also developed new shows that have caught the public eye like The Handmaid’s Tale and Fargo.
The deal comes at a time when studios and streaming platforms are battling over licensing deals to get the biggest share in the market.
Are Other Streaming Services Acquiring Movie Studios?
Streaming platform giants like Netflix and Prime are the largest at the moment in terms of subscribers, but competitors are anxious to get a piece of the action.
In another huge deal, Discovery has merged with WarnerMedia for $43 billion to form a new company that will compete in the streaming wars. In order for this deal to go through, AT&T had to unwind its acquisition with Time Warner and create a separate entity, which shows just how committed it is to streaming.
Major acquisitions are the only way for companies to compete with a limited amount of content available.
The more consolidations that take place, the fewer options you will ultimately have. This type of consolidation within the streaming industry could lead to changes that don’t favor you, like raised prices or content being held behind tiered paywalls.
What Does This Mean for You and Streaming?
For now, Netflix still holds the crown as the undisputed king of streaming. That title is almost certain to change in the near future, especially if it can’t hold on to licensing deals like the one it had with The Office.
The Office was the most streamed show on any streaming service in all of 2020 and now that it’s found a new home with Peacock, Netflix will need to figure out how many subscribers are leaving with it.
Other newcomers to the streaming wars like Paramount+, Disney+, and Peacock are all looking to grab a bigger share of the market as well.
Disney+ already has the fastest growing subscriber rate of any streaming service and continues to produce original content on top of fan-favorite franchises like Star Wars. Peacock did get the aforementioned The Office, which should help bring in an immediate subscriber boost on top of its other programming. HBO Max made huge waves when it was launched and now that it has merged with Discovery+, it too looks to gain as many subscribers as it can.
The future face of streaming won’t look much like what you are seeing today. Instead of having multiple streaming services that offer different content and unique programming, you could have a limited number of options to choose from.
As bigger companies take shape to hold the keys to the streaming kingdom, viewers run the risk of getting left behind. As the options for streaming services become more and more limited because of acquisitions and mergers from the competition, you have less power from a lack of options.
If streaming services become limited in options, they have more ability to control subscription prices, as well as creating more expensive tiers. This can all have a negative effect on streaming and on how we consume our entertainment if the current trends continue.
The positive is that you will have almost everything you want to watch under one service instead of needing to sign up for several.
Big Mergers Take Over Streaming
It’s clear that the future of streaming will be mergers and acquisitions to the highest bidder. While there are still multiple streaming options available, you should use various tools to help make it easy to find what you want to watch.
