![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/12\/814x-1-640x372.jpeg\")
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The media ecosystem is undergoing a massive change as streaming video looks to extend its recent dominance over traditional distribution, according to research firm MoffettNathanson, which wrote that a large minority of cable consumers could cut their subscriptions in coming years.<\/p>\n
\u201cThe video market is in full disruption and this year could be the cord cutting tipping point,\u201d analyst Michael Nathanson wrote to clients. \u201cMedia companies will need to master a whole new suite of skill sets to win going forward,\u201d with content creation, user interfaces and \u201cchurn mitigation strategies\u201d among the factors that could determine the next generation of winners in the market.<\/p>\n
Consumers have been abandoning traditional media bundles for years, instead looking to services like Netflix Inc. or Walt Disney Co.\u2019s recently launched Disney+ service, which has signed up more than 10 million subscribers since launching in November.<\/p>\n
Streaming services have made in-roads into a number of major categories of video entertainment, including TV shows and movies.<\/p>\n
In a measure of how big streaming has become, Wells Fargo Securities wrote that between November 17-23, \u201cThe Mandalorian,\u201d a series from Disney+ set in the \u201cStar Wars\u201d universe, was the \u201cmost in-demand show in OTT and overall on a linear+OTT basis.\u201d<\/p>\n
OTT stands for \u201cover the top\u201d content, which bypasses cable boxes. Linear TV airs at set times, as opposed to being on-demand, as with streaming. The firm cited data from Parrot Analytics in its report, which was dated Nov. 29.<\/p>\n
Geetha Ranganathan, an analyst at Bloomberg Intelligence, on Monday said that streaming was \u201cabsolutely\u201d contributing to a weak overall U.S. box office in 2019. \u201cThis becomes a bigger problem next year especially with a weaker slate (absence of big franchises from Disney) and the streaming wars going into high gear,\u201d she said in an interview.<\/p>\n
Live entertainment, especially sports, has proved to be something of an exception to this trend.<\/p>\n
MoffettNathanson called sports viewers \u201cthe most entrenched\u201d among those who continue to pay for traditional TV subscriptions. Citing work with analytics firm Altman Vilandrie & Co., he estimated that regular sports viewers made up 60% of current TV subscribers.<\/p>\n
They make up \u201cthe potential floor for the pay TV ecosystem, as long as the major sports leagues\u2019 rights remain exclusive to the pay TV bundle.\u201d He added, \u201cthat leaves 40% of today\u2019s Pay TV universe at risk\u201d over the next five years.<\/p>\n
As part of its call, MoffettNathanson reiterated its sell ratings on both AT&T Inc. and Dish Network, while recommending investors buy Disney shares.<\/p>\n
Among the biggest beneficiaries of the trend in 2019 has been Roku Inc., which acts as a service-agnostic platform for streaming content. The stock has more than quadrupled thus far this year, rising amid the \u201cexuberance over all things streaming,\u201d according to Morgan Stanley.<\/p>\n
The firm\u00a0downgraded Roku on Monday<\/a>,<\/strong> writing that while it was bullish on the company\u2019s growth prospects, the risk profile looked \u201cskewed to the downside\u201d after the 2019 surge.<\/p>\n The media ecosystem is undergoing a massive change as streaming video looks to extend its recent dominance over traditional distribution, according to research firm MoffettNathanson, which wrote that a large minority of cable consumers could cut their subscriptions in coming years.<\/p>\n","protected":false},"author":341034,"featured_media":236520,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[24],"tags":[12857,2054,15407,3476],"class_list":["post-331105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-disney","tag-netflix","tag-television","tag-video-streaming"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/331105"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=331105"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/331105\/revisions"}],"predecessor-version":[{"id":331109,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/331105\/revisions\/331109"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/236520"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=331105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=331105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=331105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\nNow read: Beware DStv Premium upgrade scam in South Africa<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"