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Originally Posted by OLD BOY
The link between the growing popularity of the streaming services and the decline of pay tv channels, it seems, is starting to play out.
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Also, if the media companies are all going down the DTC (direct to consumer) route aka streaming, something has to give.
Disney has done very well in recent weeks and its share price is up 20% on the announcement of its streaming service, but for their streamer to become as popular as Netflix, means that their linear channels must decline.
Why? Because people won't pay for the same stuff on the Disney Channel, ESPN channel etc and pay for their streamers too. Disney makes tons of money off its linear channels and selling rights onto others, this will all come to a stop over the next few years.
It's a whole new world and it'll be interesting to watch who the winners are and who the losers will be. It's brave of Disney to go full hog into streaming, but they were left with little choice with Netflix gobbling up the streaming market pretty much to itself.