Will All Production Companies Have Streaming Services in the Future?

The world of media is rapidly evolving, with streaming services (OTT platforms) becoming the dominant force in content distribution. This transformation raises an interesting question: will all production companies eventually have their own streaming services?

Current Landscape

Currently, most production companies, such as Blumhouse Productions, MGM Worldwide Television Group, and Amblin Entertainment, primarily distribute their content through broadcast and cable networks. Smaller production companies often rely on licensing their content to larger streaming platforms. This trend is especially pronounced for companies outside of Hollywood, which are increasingly sought after for their unique content, such as Japanese anime, Bollywood movies, and Korean drama.

However, only a handful of the largest production companies, including CBS, Disney, Comcast, NBC Universal, ATT, and Warner Media, have either established or are planning to set up their own streaming services. For instance, CBS All Access, Disney , Hulu, and Peacock have all emerged as direct-to-consumer platforms.

Towards a More Diverse Streaming Ecosystem

There is a growing consensus that all production houses will eventually embrace streaming services. However, the exact model for these services may differ from the current single-platform approach. The idea of a monolithic streaming service is being challenged by the concept of a multi-service bundle, where multiple platforms are integrated into a single ecosystem.

Disney's recent announcement of Disney as an extension of its existing Hulu and ESPN services is a prime example of this trend. Under this model, Disney is positioned as a standalone service, while Hulu remains a 60-40 joint venture between Disney and Comcast. ESPN , on the other hand, focuses on sports content. This multi-service approach allows consumers to access a broader range of content within a single subscription.

Other production companies are likely to follow suit, offering various streams that cater to different niche markets. This could lead to a fragmented but comprehensive service that caters to a wide audience. For example, a major production company might launch a dedicated service for drama, one for comedy, and another for documentaries, all under a unified brand.

Acceleration of the Streaming Revolution

The recent launch of Disney has been a significant catalyst in this shift towards more diverse streaming ecosystems. The success of this multi-service model suggests that traditional distribution methods are being replaced by more flexible and consumer-friendly options. As more viewers gravitate towards on-demand content, production companies are keen to stay ahead of the curve by creating their own platforms.

Furthermore, the cost-effectiveness of streaming services is attracting both new and established players. Smaller production houses can now reach a much wider audience at a lower cost, making it easier for niche content to find its audience. This democratization of content distribution is likely to drive more companies into the streaming space.

Conclusion

In conclusion, while it is becoming increasingly clear that all production companies will eventually have their own streaming services, the exact form these services will take is still evolving. From the traditional single-service approach to the diverse multi-service bundles, the future of media consumption is likely to be a complex ecosystem of interconnected platforms. This transition will not only reshape the way we consume content but also transform the business models of production companies.

As the streaming revolution accelerates, production companies must adapt to this new landscape to remain relevant and competitive in the 21st-century media ecosystem.