The increased focus of media companies to license film and television content to sites such as...

|By:, SA News Editor

The increased focus of media companies to license film and television content to sites such as Amazon and Netflix is irresistible due to the lush margins for streaming video on demand, but the trend also poses a long-term threat to the traditional TV advertising model as new generations of audiences become accustomed to SVOD viewing habits. What to watch: Content companies need to maximize profits without cannibalizing TV ratings for hit shows. Look for more quick SVOD profit hits from CBS (CBS), Discovery Communications (DISCA), Time Warner (TWX), and Viacom (VIA, VIAB) while News Corp. (NWS, NWSA) and Disney (DIS) may have broader streaming plans in mind.