Media conglomerates are shifting their attention and revenue dollars towards over-the-top (OTT) video resources. Due to cord-cutters ditching traditional television platforms, a lot of media M&A has been fueled by companies’ desire to be the first, to rush new products to the market, or to improve existing platforms in order to stay ahead. Disney-owned ESPN, Google and AT&T are among the buyers.
OTT, arguably the number one buzz word across the entertainment industry besides Kardashian, is a term used in the broadcast business for the delivery of film and television content using the Internet without requiring viewers to subscribe to a traditional cable or pay-TV service. How did we get to this point in the media business, you ask? Simply because consumers want easier access to their favorite television shows, Netflix Inc.’s (NYSE: NFLX) disruptive introduction to the market by actually listening to consumers, and older media conglomerates scurrying to shift their business model in order to catch up.