The Shepherds: A new class of executives take over to guide media industry's transformation

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Disney, Netflix, and TikTok are among companies with new executives who will reorganize organizations and adjust consumer habits for the next generation of video consumption.

That's a lot of turnover for fewer than nine months. What's going on here?

Clearly, the media industry is in a state of transformation. The main shift is highlighted by traditional media companies reorganizing for a world of streaming video. The cable/pay-TV model — a mutually beneficial system for cable companies and cable networks for about four decades — is eroding. This new class of CEOs have one major goal: get consumers adjusted to consuming and paying for digital video while artfully winding down the cable bundle. This has started already, but the transition may take the entire decade.The pay-TV business has been a reliable cash cow for about 40 years.

"People would sooner unplug their refrigerators than their cable boxes," telecommunications analyst Craig MoffettProgrammers have consistently raised prices on distributors. Those costs have been passed on to consumers. That's part of why the industry is now changing — the cable bundle became too expensive and out of whack from a price-value standpoint to what Netflix and Amazon Prime Video were offering. Customers revolted.

 

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