Wholesale Distribution Will Fuel Subscriber Growth For Streaming Services

Even with the growth of streaming, a future model to replace the highly profitable Pay TV structure has yet to take shape in a way that satisfies both industry players and consumers. But while the future model remains uncertain, wholesale distribution deals are bringing operators and streaming services together—a strategy that diverges from the "emulate Netflix" trend of the late 2010s.

In July, we wrote about how the decline of the Pay TV bundle operates like a game of Jenga. Each new disruption is like pulling another block out of the tower. Unless Pay TV operators pivot, it's only a matter of time before the whole tower topples over. In August, the tower started to shake with the Charter-Disney carriage dispute. Stock prices in the ecosystem plunged as TV industry players and investors waited to see if the tower would topple. The negotiated agreement served as a block pulled out without collapsing the tower.