Streaming services are currently cannibalizing television networks in the same manner that social media companies weakening the tv news business. There are only so many places put can give your attention in a given day, and the more options media corporations provide, the more cutthroat competition will be to get your attention.
Cable television networks are now expecting you to pay for an additional streaming service, on top of the money you already pay to the cable provider. We all have a decision to make, which way to go, and that's what cannibalization is.
From a business perspective, it's all about supply and demand. You have more options than ever with OBS Streaming, and capabilities for access are only on the increase right now. The Hosted Virtual Desktop means you can logon from anywhere, and it opens up a world of opportunities, but at a price.
No one can be certain where this is all going, at a time when television ratings for sports is down all across the board, but most of the media attention is on declining viewship for the NFL and NBA.
While people are watching less sports on tv, they're tuning into more news programming, as cable networks are seeing their Nielsen numbers surge. It all makes sense given that a.) the covid-19 pandemic rules all apects of our daily lives, so we must all try and stay on top of the latest developments with that b.) it's an election year, and as early voting demand has shown, this might be the most interested in a Presidential contest that America has ever been and c.) sports are just not the same this year, they simply matter less with aforementioned point A and point B looming over all the games.
These are confusing times, so much so that even the market leaders don't have the answers. Disney, the most imperial of all media brands, is reorganizing their Disney+ streaming services in accordance with trying to navigate these rocky waters and uncertain conditions. Opportunity cost and price point are of primary concern to consumers. What do you really need to see above all else?
What can you do without?
Utlities are the answer to that question! But will these streaming services be regulated like a utility? We all need heat, water, electricity etc. as basic survival needs, and you can throw internet service into this category as well. What about cable television?
What about the social media companies, obvious MEDIA companies that SHOULD be regulated in the same manner that news corporations are by the Federal government, but instead they get total laissez-faire treatment.
It's a struggle now- the Feds want to regulate the FAANGs of the world, but the companies themselves are fighting it hard. But with more people getting their news and information from Facebook, Amazon, Apple Netflix and Google, it is inevitable that these tech behemoths, the monopolists of our era, will be broken up and regulated, eventually.
While your FAANG stocks (and others like them) are known for high volatility, egregious Price-to-earnings ratios and little to no dividends, utilities are on the opposite end of the spectrum. They are stable stocks with consistent dividends, providing a good outlet for those seeking for "defensive" positions.
However, these two polar opposite categories of sectors have this in common- regulatory agencies are always top of mind for them. Utility companies need governmental permission to raise rates on their customers, and although they typically get at least some of what they want, they don't always get all that they want.
It seems that only Jeff Bezos, Mark Zuckberg, Jack Dorsey and company have those kind of privileges.
Paul M. Banks runs The Sports Bank, partnered with News Now. Banks, the author of “No, I Can’t Get You Free Tickets: Lessons Learned From a Life in the Sports Media Industry,” has regularly appeared in WGN, Sports Illustrated, Chicago Tribune and SB Nation. Follow him on Twitter and Instagram.
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Filed under: Current Events