Inside the Content Consolidation Craze

Many Possible U.S. Buyers for Channel 4 if UK Loosens Remit

The U.K. government's plans to potentially sell Channel Four Television Corp. could represent a good opportunity for a large U.S. buyer, but its value will depend largely on whether the strict rules regulating the public service broadcaster are loosened, experts said.

Content Consolidation Drives Media Deal Adviser Fees in May

The content consolidation wave turned into a tsunami in May as U.S. media companies sought to better position themselves in the global streaming wars.

LionTree, Goldman Sachs Cash in as U.S. Telcos Shed Media Units

May continued to a near-frenetic drumbeat of M&A activity in the information technology sector.

Amazon-MGM Deal a Show of Force in the Content Arms Race

The content arms race is in full effect, and Amazon.com Inc. is showing some unprecedented firepower.

With AT&T's WarnerMedia Deal, Another U.S. Wireless Leader Retreats from Content

A grand experiment by U.S. wireless carriers to make and distribute video content appears to be coming to an end, as AT&T Inc. joins Verizon Communications Inc. in preparing to shed its media business.

WarnerMedia, Discovery Combination Would Create New Cable Network Giant

AT&T Inc. on May 17 announced that it plans to spin off its WarnerMedia Investments division and join forces with Discovery Inc. to form a new company.

One result of that spinoff would be to place 32 U.S. basic cable networks under the same umbrella, the largest of any other cable network group, with The Walt Disney Co. in second with 29 networks.

Note that this includes partially owned networks and does not include regional sports or premium networks.

Univision Aims to Offer More Spanish-Language Content Than Any Other Streamer

Univision Communications Inc. is gearing up for the 2022 launch of its two-tiered, aggregate streaming service, and the Spanish-language programmer has big ambitions.

"Our vision for the offering is to grow significantly over the next three years and offer more Spanish-language content than any other streaming service globally," Pierluigi Gazzolo, president and chief transformation officer at Univision, said in an emailed interview with S&P Global Market Intelligence.

Lions Gate Not 'Distracted' by Media M&A as Starz Streaming Subscriptions Grow

As Lions Gate Entertainment Corp. continues to build its streaming business, the company said it does not want to get swept off course by the current wave of media consolidation.

Lions Gate CEO John Feltheimer on a May 27 earnings call with analysts looked to deflect the notion that the company could be a target amid the current spate of media acquisitions.

Redbox CEO Talks Future of Video Entertainment as Company's Business Evolves

Redbox Automated Retail LLC, which is in the process of going public via a reverse merger with special purpose acquisition company Seaport Global Acquisition Corp., is aiming to evolve its business beyond its legacy DVD rental kiosks to include more revenue from streaming partnerships, ad-supported content and other business. The company, which specializes in distributing low-budget films, is attempting to coax the company's 39 million value-conscious loyalty program customers, many of whom are technology late adopters, to give digital media a try.

Redbox expects cord-cutting will accelerate among its 40 million value-conscious consumers as the cost of pay TV subscriptions rises.

Redbox Entertainment, the company's production studio, is aiming to ramp up to making 36 low-budget films per year.

The company is experimenting with distributing content through various windows, including premium video-on-demand, lower-priced transaction video-on-demand or pay-per-view, and ad-supported platforms.

This is one of a two-part series on the evolution of Redbox. The second part, a look at Redbox's prospects, can be found here. Redbox's SPAC-funded evolution from DVD rentals to digital media.

Amid Content Creator Craze, Social Platforms Rush to Pay Up

The meteoric rise of short-form video platform TikTok Inc. is shaking up the social media business, with companies such as Facebook Inc. and Google LLC-owned YouTube LLC looking at expanding monetization opportunities for content creators.

While the idea of promoting content creators and their work has long been a focus for Facebook, Twitter Inc., Snap Inc. and YouTube, TikTok's efforts to broaden monetization opportunities for creators beyond advertising is catching on. TikTok content creators earn the bulk of their money from sponsored posts, product placements and selling merchandise on the site.

TikTok, like most internet platforms, generates the majority of its total revenues from advertising, but it also derives revenue from in-app purchases, where users buy virtual coins with real money to send virtual gifts to popular figures on the platform. The company, owned by Beijing Byte Dance Telecommunications Co. Ltd., has not disclosed detailed financial metrics.

Amazon-MGM Deal Could Pressure Regulatory Review of Content Consolidation

Consolidation continues to stir through the media industry, leaving behind a soup of content companies that look much different than the individual studios, media and tech companies that were once on the shelf.

Most recently, Amazon.com Inc. said it will acquire MGM Holdings Inc., operator of the Metro-Goldwyn-Mayer Inc. film and TV studio, in a hefty $8.45 billion deal. While the pricey acquisition does pull more content studios under the umbrella of horizontally integrated tech and media companies, industry experts are divided on whether the deal does enough to impede competition so as to hit a regulatory roadblock.

Discovery, WarnerMedia Merger Likely to Pass Regulatory Scrutiny

Less than three years after AT&T Inc. won a hard-fought battle to acquire media company Time Warner, AT&T wants to cut its media division loose — and analysts expect regulators to be OK with that.

While AT&T's plan to combine its Warner Media LLC entertainment, sports and news operations with lifestyle network owner Discovery Inc. to form a new stand-alone company is likely to face scrutiny from U.S. regulators, media analysts say they ultimately expect the deal to win approval in time to close next year as planned. By contrast, it took AT&T about two years to close the original deal to acquire the Warner Media assets.

Industry Top Trends Update: Media and Entertainment North America

Rating activity is skewing positive. The U.S. economy’s recovery has accelerated, supported by government stimulus, and widespread vaccination, allowing markets to reopen. Positive rating actions have exceeded negative actions by 3:1.