We can't find the internet
Attempting to reconnect
Something went wrong!
Hang in there while we get back on track
MoffettNathanson’s Michael Nathanson | Full interview | Code Media 2019
Michael Nathanson from MoffettNathanson shares insights on the future of TV and streaming, including the impact of cord cutting, sports and news viewership, and the rise of virtual MVPDs.
- Sports and non-news viewers are driving cord cutting, with 53% of households considering themselves regular sports viewers and only half of non-sports and non-news viewers paying for TV.
- Netflix and Disney+ are expected to drive streaming growth, with Disney+ predicted to surpass Netflix in popularity within 5 years.
- The traditional bundle model is dying, with virtual MVPDs and cable operators raising prices, leading to cord cutting.
- Live sports and news are essential for maintaining a traditional TV bundle, as 91% of sports and news viewers still pay for TV.
- Content fragmentation is a major concern, with the need to spend more money to acquire high-quality content and maintain a competitive edge.
- Cord cutting is expected to continue, with negative 6% growth rate in all industries, including satellite, cable, and telecommunications.
- Disney’s original content budget is expected to increase to $24 billion in the next 4-5 years.
- Sports fans tend to have higher income levels and are more likely to pay for a TV bundle, while non-sports fans are more likely to cut the cord.
- Virtual MVPDs are raising prices, with 28 shows on Amazon Prime that consumers like but are not actually on the service.
- HBO Max is expected to be successful due to its pre-existing brands and ability to use the power of sports to maintain viewership.
- The cost of sports and broadcasting is driving distributors to raise pricing, leading to further cord cutting.