Fox Corp. is planning to launch a direct-to-consumer streaming service sometime later this year, Executive Chair and CEO Lachlan Murdoch told analysts on an earnings call Wednesday.

Details of the Fox DTC service, which would target cord-cutters and cord-nevers, remain sparse.

The news comes in the wake of the collapse of the Venu sports streaming service, which Fox had been planning to launch in partnership with The Walt Disney Co.’s ESPN and Warner Bros. Discovery.

“We'll announce more … in the … future, but we would see that package as a package that's holistic of all of our content of sports and news,” Murdoch said when asked if the DTC service would include the cable-distributed Fox News Channel or subscription streamer Fox Nation, as well as the company’s other brands. Those brands include pay TV-distributed sports channels such as FS1 and Big Ten Network.

In discussing the service, Murdoch noted that it is part of a larger strategy to ensure “maximum distribution of our content, whether that be traditional, digital streaming or our own D2C offering in the near future.”

“By really driving our engagement with consumer viewers across traditional linear platforms, across cable distribution, across the digital MVPDs and across our own D2C services targeting these cord- cutters and cord-nevers, that will put us in absolutely the best position with the broadest reach,” Murdoch said.

With regard to distribution, Murdoch noted that Fox has also been capitalizing on a trend towards skinny bundles. “Three distributors have announced new skinny packages in recent months, and we expect this trend to continue,” he said. “We see this as a positive initiative by both our distribution partners and other content owners. The inclusion of our suite of channels, sports and news in each of these offerings is a real economic benefit to us, even more so than the sports-specific Venu, and so gives us greater confidence for Fox over the long term.”

In terms of strategy, Murdoch stressed: “We see the traditional cable bundle as still the most value for our consumers, and frankly, the most value for the company. So we're huge supporters of the traditional cable bundle and we will always be. But having said that, we do want to reach consumers wherever they are. And there's a large population, obviously, that are now outside of the traditional cable bundle, either cord-cutters or cord-nevers.”

As a result, Fox is “designing an offering to really target those cord-cutters and cord-nevers that are not traditionally in the cable bundle,” Murdoch said. “We don't want and we have no intention of churning a traditional distribution customer into our D2C customer. And so our subscriber expectations will be modest, and we're going to price the service accordingly. And it's also important to note with those modest expectations, we do not expect any exclusive rights costs or additional incremental rights costs.”

“This service will be a package of our existing content on our existing brands targeted to consumers that are not currently in the bundle,” he added. “So the incremental cost will be relatively low, certainly relative to what our peers have spent in this space. And we’re excited to be able to talk about it more in the coming weeks months. In terms of timing and launch, we're certainly targeting a launch by the end of this calendar year.”

AI is playing an increasingly central role in broadcasters’ direct-to-consumer (D2C) strategies. This shift was evident at IBC 2024, where discussions underscored AI’s evolution from a buzzword to an essential driver of innovation in media and entertainment. According to a recent Google Cloud study, nearly two-thirds of senior media and entertainment executives now see AI as a critical driver of future revenue growth. Yet, the question remains: How exactly does AI support revenue generation for broadcasters?

The Role of AI in Tackling Churn to Protect Revenue
Churn remains one of the most significant threats to revenue growth in subscription-based models. Research conducted by Omdia uncovered that average industry churn rates range from 11% to 14% per month. This implies that many streaming platforms are churning nearly half of their subscriber base every six months. With three-quarters of industry leaders predicting churn will hold steady or even increase, the challenge at hand is evident.

AI steps in here by equipping broadcasters with the tools to proactively address churn. By identifying at-risk subscribers and enabling timely, targeted interventions, AI becomes a powerful ally in retaining customers and protecting revenue. Let’s explore how this works in practice.

Four Key AI Applications to Reduce Churn and Drive Revenue Growth
1. Proactively identifying and retaining at-risk subscribers: AI’s predictive analytics capabilities are revolutionizing how broadcasters identify subscribers at risk of churning. By using machine learning models to analyze patterns in viewing habits, customer interactions, and tenure, AI systems can highlight subscribers likely to cancel—and even pinpoint underlying reasons. This data can inspire proactive engagement strategies, offering an opportunity to retain subscribers before they leave.

Once an at-risk subscriber is identified, AI-driven tools can help broadcasters tailor interventions to different segments based on those subscribers’ unique profiles. This may include special offers, relevant content recommendations or engagement prompts. With this approach, broadcasters can get better positioned to retain high-value subscribers, thereby protecting at-risk revenue.

2. Delivering personalized, targeted responses to drive loyalty: Timely, relevant outreach is critical for effective retention. AI-driven campaigns empower broadcasters to connect with audiences through personalized messaging, offers, and reminders based on a subscriber’s history and engagement. This precise targeting is essential for building loyalty in today’s hypercompetitive market.

AI-powered content recommendations based on individual viewing histories, for example, can help deepen engagement and build excitement for future offerings. In fact, nearly 50% of streamers report appreciating AI-curated recommendations, according to a Media Play News survey, underscoring how valuable these personalized suggestions are for retention.

Beyond content, AI can support dynamic, flexible pricing strategies. By analyzing regional preferences, user activity, or behavioral data, AI can enable broadcasters to offer personalized pricing options, such as discounts, upgrades, or subscription adjustments. These models can allow broadcasters to meet subscribers’ needs more precisely, reducing the likelihood of cancellation.

Another application: AI-driven in-app notifications can further enhance engagement by nudging subscribers to explore new content or remind them of upcoming events they may enjoy. Predictive analytics can also anticipate payment behaviors, allowing for timely payment reminders or alternative options to reduce involuntary churn. These tailored interactions can help build a subscriber experience that meets users where they are and strengthens retention efforts.

3. Enhancing marketing performance with data-driven insights: AI’s capabilities aren’t just restricted to predicting churn and enabling action; It can also enhance the overall effectiveness of marketing efforts. By analyzing subscriber responses in real time, AI can allow broadcasters to continuously refine their retention strategies.

For instance, AI can identify which types of campaigns perform best, what drives engagement and which subscriber segments are at highest risk. This data can equip broadcasters to adjust tactics based on proven insights rather than on guesswork. Over time, these adaptations can make marketing efforts more effective and efficient, directly impacting subscriber loyalty and revenue.

Additionally, AI can even simplify the process of gathering insights. Using AI tools, broadcasters can quickly obtain answers to key questions about subscriber behavior, churn drivers, and revenue trends from vast datasets without extensive manual analysis. This can enable faster, data-driven decision-making and reduce the dependency on large analytics teams, streamlining operations and costs.

4. Delivering an outstanding subscriber experience to combat churn: Customer experience is a critical factor in retaining subscribers. A seamless streaming experience directly correlates with satisfaction and, ultimately, subscriber loyalty. AI has a pivotal role here as well by continuously monitoring and optimizing the quality of experience (QoE). AI tools can detect network issues or buffering risks early, preventing disruptions that can lead to subscriber dissatisfaction.

AI can also strengthen customer support by addressing common inefficiencies associated with traditional support mechanisms, such as long response times and impersonal interactions. AI-powered chatbots, for example, can handle a wide range of subscriber queries, improving first-contact resolution rates and freeing human agents to focus on more complex issues.

Over time, these chatbots learn from interactions, enhancing their effectiveness and personalization capabilities. In cases requiring human intervention, AI can support agents with data-driven insights, enabling them to provide faster, more personalized assistance. This combination of automation and intelligent support can enhance the subscriber experience, reduce frustration, and contribute to lower churn rates.

Bottom Line: Now Is the Time To Invest in AI for Sustained Growth
As we look ahead, AI has transitioned from a “nice-to-have” to a business imperative in the direct-to-consumer streaming landscape. The competitive environment demands solutions that not only attract new subscribers but also retain existing ones. By leveraging AI, broadcasters can take meaningful steps to mitigate churn, optimize marketing efforts, and elevate the subscriber experience. AI offers a clear path to safeguarding and growing revenue through strategic, data-driven approaches to customer engagement, retention, and satisfaction. Truly, the time to act is now.

Two revolutions are reshaping the media landscape: the rise of artificial intelligence (AI) and the rapid expansion of direct-to-consumer (D2C) streaming. Both are transforming industries across the board, but their impact is especially profound in media distribution. The convergence of these two revolutions is creating a unique opportunity for content creators and sports organizations alike to rethink how they engage with fans, monetize content and control their own destinies.

The D2C Disruption
Traditionally, sports teams and leagues relied on TV networks like ESPN or TNT to buy media rights, bundle that content into TV channels and sell it to consumers through multichannel video programming distributors (MVPDs). While this model has been successful for decades, the arrival of the internet promised a new era of content distribution—one where anyone could share their content directly with audiences, unencumbered by middlemen.

However, that promise has yet to fully materialize. Instead of creating a level playing field, the rise of tech giants—often referred to as the FAANGs (Facebook, Amazon, Apple, Netflix and Google)—has resulted in a few dominant players controlling content distribution. Many content owners found themselves simply trading one intermediary (TV networks) for another (the FAANGs), neither of which necessarily had their best interests at heart.

Today, D2C streaming is reversing that trend. By cutting out middlemen, content creators, and sports teams can distribute their content directly to fans, monetizing more effectively and creating personalized, engaging experiences.

A prime example of this shift is happening in the NBA, where teams like the Utah Jazz, Phoenix Suns and Washington Wizards have launched their own D2C platforms, bypassing regional sports networks (RSNs) like Bally Sports. With platforms like the Jazz’s “Jazz+,” these teams can live stream games, offer exclusive behind-the-scenes content, and provide alternative broadcasts—directly engaging fans and controlling the entire user experience.

How AI Is Supercharging D2C Streaming
While the D2C model is a powerful way for content owners to connect with fans, the introduction of AI is taking things to a whole new level. AI is poised to make D2C streaming dramatically easier and more effective, providing a range of tools and solutions that can optimize every aspect of the content experience.

Customer Service
AI is already proving to be an exceptional customer-service agent, offering fast, personalized and accurate responses to customer inquiries. In D2C streaming, this capability is critical. Fans of sports teams or creators expect a highly individualized experience when engaging with their favorite brands. AI-driven customer service can create continuity in those interactions, maintaining a long-term history of engagement rather than starting from scratch with every new query.

Data Analysis and Audience Insights
One of the key advantages of D2C streaming is the ability to collect first-party data directly from users. This data can be a goldmine for content owners, providing invaluable insights into fan behavior, preferences and engagement.

AI-powered analytics can sift through vast amounts of data to identify patterns, predict user behavior and even recommend actions to enhance monetization and reduce churn. For example, by analyzing fan behavior, AI can help a sports team decide when and how to introduce new content, ads, or merchandise, ultimately driving revenue growth.

Marketing and User Acquisition
For D2C platforms, acquiring new users is just as important as keeping existing fans engaged. AI can help brands tap into new audiences more effectively by analyzing data to find the right users and craft targeted marketing campaigns.

This is especially important in attracting younger viewers who may not have been as engaged with traditional media but are drawn to personalized, AI-enhanced experiences.

Super-Serving Different Fan Segments
Not all fans are the same and they don’t all want the same content at the same frequency. AI’s ability to segment audiences allows D2C platforms to serve casual fans, regular viewers, and superfans in tailored ways.

Superfans may crave constant updates, behind-the-scenes access and real-time game data, while casual fans might only need occasional updates or summaries. AI ensures that each fan gets content delivered in a way that resonates with them.

Content Discovery
D2C platforms often offer vast live, on-demand and clipped content libraries. AI can dramatically improve the user experience by analyzing these libraries and creating personalized feeds for each user.

With AI-powered recommendations, fans can easily discover new content, whether it’s a favorite player's highlights, a live game, or exclusive behind-the-scenes footage. This helps fans stay engaged and ensures that they’re constantly discovering fresh, relevant content.

Generative AI: Proceed with Caution
While generative AI offers exciting possibilities, it also comes with potential risks. Authenticity is crucial for a successful D2C platform, and AI-generated content must align with the brand’s values and tone. While generative AI can help create supplementary content, teams, and content creators must be careful not to sacrifice authenticity in favor of efficiency.

AI + D2C: A Winning Combination
As D2C streaming continues to disrupt the sports and entertainment industries, integrating AI will unlock even more opportunities for content creators, teams, and leagues. By leveraging AI for customer service, data analysis, marketing, content segmentation, and more, D2C platforms can deliver richer, more-personalized experiences that keep fans engaged and loyal.

In the end, AI and D2C streaming are transforming not only how content is distributed but also how fans interact with the sports and entertainment they love. For content owners, the combination of these two revolutions offers an unprecedented level of control, personalization and revenue potential—reshaping the future of sports broadcasting and media distribution for years to come.

In the runup to the first season of the NHL’s Utah Hockey Club, SEG Media launched UtahHC+, a dedicated, Utah Hockey Club-branded direct-to-consumer (DTC) streaming service similar to Jazz+, the Utah Jazz’s streaming service that SEG launched in September 2023. 

In addition, SEG Media has also introduced SEG+, a bundle that provides access to all UtahHC+ and Jazz+ content in one convenient place. 

SEG reported that the three services are equipped with enhanced capabilities including DVR and Search functionality and feature extensive programming – live games, video-on-demand (VOD) content, game-specific alternative broadcasts, and more insider programming – all produced by SEG Media. 

Subscriptions for SEG+, UtahHC+, and Jazz+ are available for purchase now at www.segplus.com.

“There has never been a more exciting time to be a sports fan in Utah, and we are committed to making sure our fanbase can easily engage in every minute of the action coming this season with Utah Hockey Club and the Utah Jazz - however they want to watch,” said Caroline Klein, chief communications officer for Smith Entertainment Group. “We gained valuable insight into our fans’ streaming preferences last season and look forward to creating even more memories with them through the front-row access and intuitive experiences that SEG+, UtahHC+, and Jazz+ provide.”

The SEG+ subscription sports streaming bundle is only available as an annual subscription priced at $174.99. 

UtahHC+ gives subscribers access to 75+ live Utah Hockey Club preseason and regular season games, excluding all exclusive nationally televised games. Live game coverage begins with the club’s first preseason game at 5 P.M. MT on Sept. 22 against the St. Louis Blues at Wells Fargo Arena in Des Moines, Iowa.

Annual subscriptions to UtahHC+ are available for $69.99 (less than $1 per game). Other UtahHC+ subscription options include monthly ($14.99) and pay-per-view (starting at $5 per live game). 

Jazz+ offers live streams of 75+ Jazz games and pre- and post-game coverage, excluding exclusive nationally televised games and other content.  An annual subscription to Jazz+ remains priced at $125.50, equivalent to less than $1.50 per game. Other Jazz+ subscription options include monthly ($19.99) and pay-per-view (starting at $5 per live game).

Only annual and monthly subscriptions include access to on-demand games and other content such as alt-casts, in addition to live games, SEG reported. 

New for this season, SEG Media has introduced enhanced capabilities across its three DTC services, including a DVR function during live games and a new search capability makes it easy to find desired content – from game replays to popular VOD content.

Also new this season, annual and monthly subscribers to SEG+, UtahHC+, and Jazz+ will be the first to access cross-over content that highlights players from the Jazz and Utah Hockey Club coming together as they showcase the best of Utah. This programming will be available via the streaming services 48 hours before it is released on other team-owned channels.

All 3.3 million plus Utahns can access and subscribe to all SEG Media subscription streaming services. UtahHC+ is available via an expansive territory including the state of Utah, as well as Arizona, Idaho, Montana, New Mexico, Wyoming, and parts of Nevada. 

Jazz+ is available to all fans who live within the Jazz broadcast footprint, which includes the state of Utah plus areas of Idaho and Wyoming. SEG+ is available where Utah Jazz and Utah Hockey Club broadcast regions overlap.

SEG is also offering free tickets to early purchasers of the streaming services. 

BALTIMORE—As the Bally Sport+ direct-to-consumer app celebrated its official national rollout on Sept. 26, Sinclair’s Diamond Sports Group also announced that it had expanded the distribution of Bally Sports+ to include Roku. 

The deal means that Roku users will have the ability to download the Bally Sports app, subscribe to the Bally Sports+ service and stream live games and programming from their favorite local teams, all within the Roku platform. Roku users who subscribe to a pay TV service will continue to be able to authenticate through the Bally Sports app to access their regional sports content.

“Our regional sports audiences include some of the most loyal viewers, and we are excited to expand our reach as we officially launch Bally Sports+, offering fans even more ways to watch their hometown teams,” said Michael Schneider, COO and general manager, Bally Sports+. “Roku shares our same passion for delivering live, local sports to fans across the country on a nightly basis. They have been fantastic partners in servicing our pay TV viewers and we look forward to growing our partnership with the addition of our direct-to-consumer offering.”

In addition to the Roku platform, Bally Sports+ subscribers can access the service on Amazon Fire, Android TV, Apple TV, mobile and tablet devices: iOS/Android, and BallySports.com.

The Bally Sports regional sports networks (RSNs) serve as the TV home to more than half of all MLB, NHL and NBA teams based in the United States with 19 owned-and-operated RSNs.

BALTIMORE, M.D.—Sinclair launched its long-awaited direct-to-consumer Bally Sports+ streaming service on June 23 with a soft launch in five markets at $19.99 a month or $189.99 a year. 

The soft launches have occurred in five markets where subscribers can stream MLB games from the Kansas City Royals, Milwaukee Brewers, Miami Marlins, Detroit Tigers and Tampa Bay Rays.

The app is initially available on Android and Apple mobile devices and is expected to be available on Roku around the time of the All-Star Game. 

When the app makes a full launch later this year, Sinclair is expected to offer streams of at least 28 additional teams, 16 from the NBA and 12 from NHL. 

ATLANTA—The Weather Channel television network has announced that it has launched a subscription-based live stream of The Weather Channel Television Network on its updated connected TV app. 

This marks the first time that the network has offered its own direct-to-consumer subscription, significantly expanding access to its weather information at a time when cord cutting has reduced the reach of distribution on traditional cable video services. 

The service is priced at $2.99/month for The Weather Channel's live stream and on-demand library of original programming, as well as interactive features such as local forecasts, 24/7 weather alerts, real-time maps and radars. 

Viewers who have access to The Weather Channel via their cable and satellite provider can receive the same upgrades for free by authenticating their accounts using their provider credentials.

"This is a huge step for The Weather Channel television network, as we expand access to our best-in-class weather news and entertainment content," said Byron Allen, founder/chairman/CEO of The Weather Channel parent company, Allen Media Group. "Our upgraded app allows subscribers to tailor their TV viewing experience to their location and needs. As many regions in the country prepare for the start of the Atlantic Hurricane Season, it was very important to launch this new app experience to ensure that our life-saving weather information is available to everyone, 24/7."

The Weather Channel CTV app is currently available on Amazon Fire TV and Android TV and will be coming soon to Roku, Samsung Smart TV, Vizio, and Xfinity Flex. 

BALTIMORE, M.D.—Sinclair Broadcast Group has announced that its wholly-owned subsidiary, Diamond Sports Group, (“DSG”) has entered into a multi-year renewal of its digital and outer market distribution rights agreement with the National Hockey League (NHL).

The agreement is an important step forward for Sinclair’s plans to offer its regional sports networks as direct to consumer services. Under the agreement, DSG’s Bally Sports Regional Networks are permitted to offer streaming content, including live games, on an authenticated and direct-to-consumer (DTC) basis, to the local territories of 12 NHL teams. 

The agreement was expanded to allow post-game highlights on Sinclair’s digital news platforms, alternative feeds, and use of the NHL’s proprietary Puck and Player Tracking data in the broadcasts of the games.

“We are incredibly proud to continue to partner with the NHL, with which we have had a long and successful relationship, to bring the fast pace and excitement of hockey to local fans across the country,” said Chris Ripley, Sinclair Broadcast Group’s president and CEO. “Our announcement today signifies the importance that both parties place on the ability for sports viewers to consume content whenever and however they choose. The advent of a DTC model will further enhance flexibility for viewers, as well as offer them a highly-personalized and engaging experience, with functionality and interactivity well beyond what is offered today.”

Teams included in the agreement are the Anaheim Ducks, Arizona Coyotes, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, and Tampa Bay Lightning.

HUNT VALLEY, Md.—Sinclair Broadcast Group has announced its plans for a direct-to-consumer streaming version for its Bally Sports regional sports networks, which it intends to launch in the first half of 2022.

In an earnings call on May 5, Sinclair CEO Chris Ripley said that they had already cleared the path with distributors for the DTC service and that Sinclair has DTC rights for most of the teams covered by the RSNs, with discussions underway to enhance those rights.

No details were shared as far as price for the service or an official launch date.

Sinclair acquired 19 Fox Sports RSNs from Disney in 2019, which they rebranded as Bally Sports earlier this year.

Sinclair currently does not have distribution of its RSN channels on Dish Network, Hulu + Live TV or YouTube TV, which is likely spurring their decision to go DTC.

For more information, read TV Tech’s sister publication Next TV’s full coverage. 

BURBANK, Calif.—The combination of the success of Disney+ with the financial struggles caused by the pandemic is transforming The Walt Disney Company’s direct-to-consumer strategy, as the company announced a reorganization of its media and entertainment business to put a greater focus on developing and producing original content for its streaming platforms.

There will be three distinct groups for creating content—Studios, General Entertainment and Sports. Studios, led by Alan Horn and Alan Bergman, will handle the theatrical and episodic content like Marvel, Star Wars and Disney live action and animation for theatrical, Disney+ and other streaming platforms. General Entertainment, led by Peter Rice, oversees 20th Television, ABC Signature, ABC News, Disney Channels, Freeform, FX and National Geographic and will create episodic and original long-form content. Sports, led by James Pitaro, will be responsible for ESPN live sports programming, sports news and original and non-scripted sports-related content for cable channels, ESPN+ and ABC.

Meanwhile, a new single, global Media and Entertainment Distribution organization will be responsible for overseeing legacy platforms as well as monetization of content—both distribution and ad sales. Kareem Daniel, former president of Consumer Products, Games and Publishing, will head the Media and Entertainment Distribution group. The Media and Entertainment Distribution group will also manage the operations of Disney’s streaming services and domestic TV networks.

“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our company to more effectively support our growth strategy and increase shareholder value,” said Bob Chapek, CEO of The Walt Disney Company. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it. Our creative teams will concentrate on what they do best—making world-class, franchise-based content—while our newly centralized global distribution team will focus on delivering and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service.”

The new structure is effective immediately at Disney, with financial reporting expected to transition to the new structure in the first quarter of fiscal year 2021.

On Dec. 10, Disney will conduct a virtual Investor Day where it will present further details of its new DTC strategies.

OYSTER BAY, N.Y.—The impact of Disney+ goes beyond all the memes of Baby Yoda from “The Mandalorian.” The direct-to-consumer (DTC) OTT service, which will be joined by others like HBOMax and NBCUniversal’s Peacock in 2020, is forecasting a shift in the video market, according to a new report from ABI Research.

ABI dove into this and other topics in its “54 Technology Trends to watch in 2020” report. Some of the other trends dealt with virtual reality and augmented reality, 8K and 5G.

The last few years, virtual MVPDs like YouTube TV, DirecTV Now (now AT&T TV Now) and PlayStation Vue (soon to be defunct) were seemingly pointing to how content was distributed as being the key factor in a changing market. However, the popularity of Disney+ and its library of content is shifting that paradigm, and the launch of DTC services HBOMax and Peacock—with deep libraries of content of their own—will result in consumers debating how they will spend their content budget, per ABI.

This will make it difficult for new services that do not have preexisting content to make an impact in the market, predicts ABI. It says Apple TV+ is an example of that already with its lower price ($5 per month) and its bundling with new Apple hardware purchases to help spur subscriber growth.

ABI does see a potential avenue for traditional pay-TV operators. “[T]he shift to DTC does create an opportunity for these MVPDs to serve as an aggregation point for fragmented OTT services,” ABI writes.

2020 may be a good year for DTC, but ABI does not see a big growth in 8K TVs. While the 2020 Summer Olympics in Japan will be broadcasting in 8K, that hi-res broadcast is expected to be limited to the host country. In reality, 8K content for TVs around the world is still extremely limited, so, “without the content to take advantage of the higher resolution, adoption, of course, will be limited,” ABI reasons. 

Price is expected to come down for 8K TVs, though it is still expected to be higher than the average consumer can afford, so ABI forecasts less than 1 million shipments of 8K TVs worldwide in 2020. However, 4K TVs are expected to see some growth.

Other findings from ABI’s report touched on VR and AR technology. While there is growing buzz for consumer VR experiences, it is not expected to see a big growth as there still needs to be some maturation in both the hardware and software for the technology. AR, on the other hand, is expected to have some significant growth, particularly on mobile platforms. 2020 will be more of a chance for VR to establish a clearer path moving forward, says ABI.

ABI also touched on the deployment of 5G. It said that it expects 5G Fixed Wireless Access services to see “accelerated growth,” while other 5G services will continue to be built out, though there will still be ample room for growth in the coming years.

One thing that ABI did not touch on that is set for a major deployment next year is Next Gen TV. The new television standard garnered no mention in the report, even though it is expected be available in the top 40 U.S. markets by the end of 2020.

More information can be found on ABI Research’s website, www.abiresearch.com.

PLANO, TEXAS—Seeing select premium networks alongside a few other channels going direct-to-consumer (DTC) with streaming services is more than a passing fad.

Citing the ongoing unbundling of cable TV packages in the coming years, The Diffusion Group predicts that all “major” TV networks will introduce OTT-powered, direct-to-consumer services by 2022.

That, of course, would build on several of the services that have already been launched, such as HBO Now, Starz, Showtime, CBS All Access, as well as those that are in the plans from The Walt Disney Co., including ESPN Plus, among others.

Mike Berkley, TDG’s senior advisor and author of the report—"The Future of Direct-to-Consumer Video Services - Analysis & Forecasts, 2018-2028"—said those mark the “early signs of an emerging media tribalism.”

[The Future of OTT Streaming]

TDG predicts that the move by major networks to go OTT and reserve their best content for direct-to-consumer offerings will help drive total DTC subscriptions close to 50 million by 2022.

"Big media companies are reacting more boldly to changes in TV viewing behavior," Berkley added. "Consolidating, bulking up on originals, and marketing directly to consumers are driving their strategic direction."

He also stressed that DTC strategies by networks are also risky and could damage their relationships with traditional distributors.

“If networks extract too much high-value content too quickly, channel conflicts are inevitable,” he said.

This story first appeared on TVT's sister publication Multichannel News.