Code Media@Home with Michael Nathanson - Recode

Media behemoths are shifting towards digital platforms, with streaming services booming, traditional TV subscriptions dwindling, and studios adapting to new realities in the face of the pandemic and changing consumer habits.

Key takeaways
  • Streaming services have accelerated growth in the past year, with Disney+ adding 34 million subscribers.
  • Avod (advertising-based) and S-FOD (subscription-based) services are gaining popularity, with Avod expected to continue growing.
  • The COVID-19 pandemic has accelerated the shift to digital media consumption, with people spending more time online and streaming content.
  • Cord cutting is becoming more prevalent, with 61% of subscribers cutting the cord in 2019.
  • The movie industry is struggling, with a weaker box office forecast due to the pandemic and changes in consumer behavior.
  • Studios are expected to reduce their theatrical windows, releasing movies straight to streaming or AVOD platforms.
  • Traditional cable and satellite providers are facing challenges, with high costs and declining customer base.
  • The digital media companies are expected to have more momentum going forward, with accelerated growth in e-commerce and digital advertising.
  • The sports rights are expected to increase, driven by the growth of digital media and e-commerce.
  • The studios are expected to pivot their business model, focusing on digital media and AVOD platforms.
  • The market is separating companies into two camps, with those focused on digital media and e-commerce expected to thrive, and those stuck in traditional models expected to struggle.