Remember Jason Kilar? After the insanity of 2022, the WarnerMedia CEO’s exit following the Warners-Discovery merger last April seems like a relic from another time. However, he’d like to make sure he’s not forgotten: In an op-ed for the Wall Street Journal, Kilar wrote his predictions for the streaming business. Among his prognostications: There’s room for three major streamers and that’s it.
“No more than three global entertainment companies are likely to attain the streaming-service scale required — 300 million global subscriptions at an average of 15 per month — to generate attractive cash flows,” Kilar wrote. “Expect two or three major mergers and/or acquisitions involving entertainment companies in the coming 24 months as a result.”
It’s not all bad news, however. “Given the unusually large addressable market and the relatively fixed cost of content at scale, I believe the streaming cash flows of the leading companies will...
“No more than three global entertainment companies are likely to attain the streaming-service scale required — 300 million global subscriptions at an average of 15 per month — to generate attractive cash flows,” Kilar wrote. “Expect two or three major mergers and/or acquisitions involving entertainment companies in the coming 24 months as a result.”
It’s not all bad news, however. “Given the unusually large addressable market and the relatively fixed cost of content at scale, I believe the streaming cash flows of the leading companies will...
- 12/5/2022
- by Wilson Chapman
- Indiewire Television
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