Why Are Major Networks Creating Their Own Streaming Services?

The trend of major networks launching their own streaming services has sparked much debate. Many argue that it would be more efficient to partner up with other networks, while others praise the democratization of content access. Let's delve into why major networks are opting for standalone streaming services and the advantages they bring.

Is Everyone Creating Their Own Streaming Service?

It is an exaggeration to claim that every network is creating its own streaming service. In reality, it is the parent companies of the largest networks that are setting up these services and consolidating their content. Here are some examples:

Disney

Disney is a prime example. It not only includes content from ABC, National Geographic, Freeform, and the various Disney channels but also brings together content from Marvel, Pixar, and other Disney properties. Disney's streaming service has become a powerhouse in the industry.

HBO Max

HBO Max is another significant player. Att has consolidated content from various subsidiaries, including Warner Bros., HBO, Cartoon Network, Adult Swim, TCM, TNT, and others. This integration has allowed for a comprehensive and vast catalog for subscribers.

Paramount

ViacomCBS is revamping its approach by relaunching CBS All-Access as Paramount . This new service will integrate content from CBS, Paramount, Showtime, Comedy Central, Nickelodeon, and MTV. This consolidation aims to provide a seamless viewing experience for subscribers.

Peacock

Comcast's Peacock has merged content from NBC Universal, E!, SYFY, Bravo, and others. This move allows for a diverse and comprehensive offering that caters to a wide range of audiences.

It is important to note that not all players have succeeded. Some have closed their services or pivoted their strategies. For instance, PlayStation Vue and Quibi have closed operations, while YouTube and Facebook have significantly altered their strategies in the streaming space.

Why Partnering Has Not Been Successful

While major networks have attempted to partner, they have met with limited success. One notable example is Hulu, which was initially a joint venture between Fox, NBCUniversal, Disney, and TimeWarner. However, the partnership faced challenges, leading TimeWarner, Fox, and NBCUniversal to sell their shares to Disney.

Despite these partnerships, each parent company has launched its separate streaming service to capitalize on the shift in audience viewing habits. Cable TV was once a dominant force, but as more viewers migrate to video streaming, networks recognize the need to adapt and own their streaming ecosystems.

The Shift in Viewing Habits

As more viewers turn to video streaming platforms, traditional networks are pivoting to secure their future. By creating their own streaming services, networks can consolidate and protect their content. Licensing content to established platforms like Netflix or Amazon Prime would mean leaving revenue on the table and giving up control over their intellectual property.

Moreover, each player launching their own service allows for the production of higher-quality, premium original content. This diversity in content options means that subscribers can access a wider range of shows and movies. While finding specific content might become more complex, switching between services can easily resolve this issue.

Benefits of Choosing Streaming Services

The shift to streaming services offers a more flexible and personalized viewing experience. Unlike cable TV, where bundles of channels often include many that are not of interest, streaming services allow subscribers to pick and choose content. This ownership and control over what you watch is a significant advantage over traditional media.

Conclusion: The rise of streaming services by major networks is a natural evolution of the media landscape. While challenges exist, the benefits of content consolidation, personalized viewing, and higher production quality make this trend a positive step forward for the entertainment industry.