Media industry embraces streaming transformation

Direct-to-consumer (DTC) streaming services create tremendous opportunity for legacy media companies, but present operational challenges

Michelle Wroan

Michelle Wroan

Office Managing Partner, Los Angeles, KPMG US

+1 213-955-8657

Media companies with rich content libraries are well-positioned for streaming success, but launching a direct-to-consumer (DTC) streaming service is not just a simple change in their distribution model—it’s a fundamental shift in the way their business works.

To compete successfully, these historically business-to-business (B2B) companies need to build and scale a business-to-consumer (B2C) operating model in which the economics are vastly different. The rapid move to streaming resonates throughout the content ecosystem, but under a different business paradigm.

The audience potential for streaming services extends far beyond the U.S., and the international market is a key battlefield. There is tremendous opportunity for subscriber growth, but international is also more challenging to navigate with varying regulations, language and local-content considerations, and tax regimes.

For streaming video providers, the value chain extends from creation through delivery and customer experience. This requires new skills and introduces a variety of operating and business considerations that media companies have historically entrusted to their business and distribution partners.