Television is transitioning to streaming, QEF told

Cable television is facing a rapid decline, having already diminished by nearly 50% from its peak, and is unlikely to recover, TCG co-founder and partner Peter Chernin told Qatar Economic Forum 2023 on Tuesday.
“The world of cable is unfortunately done, it is on its way out, and I don’t see any scenario in which it doesn’t keep going down,” he said at a discussion titled ‘The New Business of Pop Culture’.
Chernin, a renowned American businessman and investor, tackled an array of topics shaping the tech industry. His talk with Bloomberg Television anchor Caroline Hyde covered “the future of cinema, the exponential growth of streaming audio and video, the immersive world of sports and gaming, the emergence of web3 and the metaverse”, among others.
He said television is transitioning to streaming, noting that news – a vital aspect of television –is also expected to migrate to streaming platforms. As an example, he cited CNN and Fox, which now offer streaming apps.
Chernin saidthat currently, linear television relies on programming, news, and sports. However, he predicted that over time, the cable subscriber base will continue to decrease, with the number of cable homes in the US already dropping below 50mn from a previous 90mn.
“Make no mistake, this is television. If you look at the US, television is streaming, cable is going away, broadcasting is going away, it is television, and so I think everything that you are used to in television over the past years will ultimately migrate to steaming,” he said.
With ongoing challenges in the cable industry, Chernin said the increasing capital investment in streaming, along with potential regulatory changes and the importance of international content, positions it for further transformations in the coming years.
About streamers ending up being deeply global companies and all US based, he attributed their success to two primary factors: First, he stressed the importance of capital investment where these companies possess the necessary funds and determination to grow on a global scale; second, the regulatory landscape as a contributing factor where streaming platforms experienced limited regulatory constraints over the past several years, allowing them to expand internationally.
Seeing the value of international content, Chernin said TCG recently acquired a Turkish production company and is currently engaged in negotiations to buy a Mexican-Spanish company.
“We are investing in international content because it is an area we believe in. I think Turkish is in some ways the most prominent Middle Eastern content. The thing that really attracts us to Turkey was, it is a big country, 130mn people, good economy and their content exports extremely well both to the Middle East and to Latin America, so we look at it as an opportunity to get into the Middle East,” he added.