Why Streamers & TV Networks Are Finally Making Friends
The media landscape is undergoing a significant transformation, and the once-tense relationship between streamers and traditional TV networks is finally thawing. This shift is marked by a series of strategic partnerships and collaborations that are reshaping the industry. The story of how these two forces are coming together is a fascinating one, filled with legal battles, shifting dynamics, and a mutual recognition of the need for change.
The Early Discord
In the early 2000s, the relationship between linear broadcasters and online video platforms was fraught with tension. Paramount (then Viacom) sued YouTube for $1 billion in 2007, accusing them of copyright infringement. This lawsuit symbolized the era when these two industries couldn't stand to share the same space, let alone work together. The legal battle lasted seven years and cost millions in legal fees, leaving a bitter taste in the mouths of both parties.
The Shift in Dynamics
As time passed, the landscape evolved. Streaming services began to offer bundles through pay-TV operators, and their prominence on TV set interfaces grew. However, the relationship remained uneasy due to various factors. Network executives cursed the growing power and perceived lack of accountability of streamers, while streaming platforms like Netflix, YouTube, and Prime Video saw traditional networks as dinosaurs on the brink of extinction.
The Turning Point
This year, a significant shift occurred. With the TV ad market in decline and subscriber growth slowing, both sides realized the need for a change. Top executives from streaming services and traditional networks started shaking hands on partnerships that were once unimaginable. A tipping point had been reached, and industry experts like Guy Bisson from Ampere Analysis emphasized the importance of adapting to the changing market.
Landmark Deals
One of the most notable deals was between Netflix and French commercial network TF1. This agreement, hailed as a 'new kind of partnership' by Netflix's co-CEO, Greg Peters, was akin to NBC or ABC handing over its content to a streaming service. The deal, set to begin in mid-2026, marks a significant experiment in television content distribution.
Expanding Partnerships
The Netflix-TF1 deal was followed by a series of similar agreements. Prime Video partnered with France Télévisions, bringing five key channels and 20,000 hours of content to Amazon's streaming service. Disney+, on the other hand, signed branding and content-sharing agreements with ITV, ZDF Studios, and Atresmedia, integrating Hulu into its platform and bundling ESPN with Fox One in the U.S.
The Nature of Partnerships
These partnerships are part of a broader trend known as 'diagonal integration' by Ampere. Broadcasters leverage the reach of streaming rivals, while streamers gain programming expertise and local distribution. This strategy circumvents content quotas and other regulatory obligations, especially in Europe.
Benefits and Challenges
The deals offer benefits to both parties. Streamers gain access to quality local content, reducing the need for expensive original productions. Broadcasters, on the other hand, benefit from increased distribution and the potential to reach a wider audience. However, the agreements also raise questions about compensation for rights holders and the impact on linear network ratings.
The Future of the Industry
The industry is on the cusp of significant changes. The merger of Paramount with Skydance and the rumored acquisition of Warner Bros. Discovery by Paramount indicate a consolidation phase. In Europe, the Berlusconi family's MediaForEurope (MFE) is taking control of ProSiebenSat.1 Media, aiming to create a European giant capable of competing with Netflix. The real power, according to industry experts, lies in controlling how people watch, pay, and interact with content, including the role of AI search and 'super aggregator' apps.
Conclusion
The era of harmony between streamers and networks is a significant development in the media industry. While challenges and uncertainties remain, the industry is embracing a new era of collaboration, marking a departure from the legal battles of the past.
