Tech and media companies figuring out how to dominate the new streaming landscape are turning to scale, according to Deals Goldman Sachs Group Inc.is Kim Posnett.
If people can walk around with their “entire library of content in their pockets,” says Posnett, then companies “need to try to figure out how to become the direct-to-consumer platform that consumers can’t live without.”
Two recent deals show how technology and media giants are tackling the challenge, Posnett, global head of investment banking services at Goldman Sachs and co-chief of One Goldman Sachs, said at the Bloomberg Deals Summit on Tuesday.
Amazon.com Inc.The takeover of the Metro-Goldwyn-Mayer film studio shows that high quality media content is a scarce commodity among the giants from Silicon Valley in the competition for viewers. AT&T Inc.The decision to merge its WarnerMedia business with Discovery Inc. is a bet that size and content will be critical to success in the entertainment industry, said Posnett.
“Anyone can be a retailer now,” Posnett said, adding that consumers have many more media options than they used to. “Anyone can be a content creator. Anyone can be a content distributor. “