Let The Battle Commence: Streaming War Behind Your Favorite TV Shows

Online streaming services like Netflix and Hulu have dramatically altered the media consumption habits of Americans, particularly young adults. In fact, a recent study conducted by the Pew Research Center indicates that 61% of people between the ages of 18–29 say the primary way they watch television shows is via streaming services on the internet. Although the overall percentage of U.S. adults primarily watching TV via streaming services is lower, at 28%, these numbers clearly illustrate the monumental shift away from traditional television, which is only expected to increase in the coming period.

Not surprisingly, streaming is on the minds of all broadcasters, who are battling to secure viewers, advertisers and content creators in an effort to achieve success in the rapidly evolving world of media delivery and consumption.

The streaming war has been creating big news lately. Disney announced that it’s severing its distribution deal with Netflix in favor of launching its own streaming service in 2019. This decision is certainly a setback for Netflix, which has benefited significantly from the streaming deal. But it appears to be a good move for Disney, as the company already makes it difficult to view many of its most popular movies without a purchase. By developing its own streaming service, Disney will create the potential to increase its revenue derived from people viewing the company’s celebrated catalog, including Marvel and Star Wars movies.

And the battle for streaming supremacy doesn’t stop there. Recent reports indicate that Disney is considering buying some of 21st Century Fox’s entertainment assets, including the Fox movie and television studio, the FX cable network, and a share of Hulu. Considering Disney’s plan to launch its own streaming service in 2019, purchasing some of Fox’s assets could be a powerful move, allowing the entertainment giant to increase its television production in order to provide exclusive content on its forthcoming Disney-branded streaming offering.

However, sources have revealed that Comcast is interested in acquiring the same set of Fox assets as Disney, further illustrating the high level of competition for success in the changing media industry. Although U.S. regulations prevent both Disney and Comcast from owning two broadcasting networks, the companies can legally purchase many of Fox’s major assets, while excluding its news and sports programming to avoid infringing upon antitrust laws.

As a growing number of people embrace streaming as their primary method for watching TV, the competition for dominance in the broadcasting industry is heating up, whether it involves acquiring existing companies or launching entirely new streaming services.

So, where are you going to watch your favorite TV show tonight?

By Sergey Bludov
Senior Vice President, Media and Entertainment at DataArt