Media Industry Deals: A New Wave in 2025

The media industry is on the cusp of a new wave of deals, driven by evolving consumer habits, the rise of streaming services, and the transformative potential of generative AI (GenAI). As we look ahead to 2025, the deal landscape is set to tick up, with carriage agreements, content demands, and data analytics playing significant roles.

1. Carriage Agreements: The New Catalyst

Carriage agreements between network owners and distributors are becoming change agents, reshaping the pay TV landscape. In 2025, we can expect a continuation of the trend seen in 2023, where industry heavyweights reset the framework. Network owners will retain linear distribution for popular channels, while distributors rationalize their portfolios, eliminating poorly viewed channels and packaging related DTC services with linear offerings. This dynamic benefits consumers, distributors, and media companies alike, potentially slowing cord-cutting and stretching the remaining runway of linear cash generation. As a result, media companies will gain access to new streaming customers, driving deal activity in 2025.



2. GenAI: Driving Consolidation and Mergers

GenAI is poised to play a significant role in driving media industry consolidation and mergers in 2025. By leveraging GenAI for content creation, personalization, and targeted advertising, media companies can enhance their offerings and increase market share. This transformation will make media companies more attractive for mergers and acquisitions, leading to increased consolidation and deal activity in the coming year. According to PwC's Global Entertainment & Media Outlook 2024-28, the industry is projected to hit $3.4 trillion in 2028, with advertising revenues topping $1 trillion in 2026, further fueling this trend.

3. Live Sports and Exclusive Content: A Driver for Consolidation

The increasing demand for live sports and exclusive content is a significant driver for consolidation and deal activity in the media industry. As consumers increasingly consume content online, companies need to diversify their product offerings and connect with consumers on the platforms where they spend more of their time. This shift will likely lead to strategic acquisitions and partnerships to secure exclusive content and live sports rights, further fueling deal activity in the media industry. According to PwC's outlook, live sports, including mega-events like the Summer Olympics, are key to driving growth for streaming services, intensifying competition and encouraging industry consolidation.



4. Data and Analytics: The New Currency

The growing importance of data and analytics in media companies is set to significantly impact the valuation and appeal of potential acquisition targets in 2025. As consumers demand personalized content and experiences, media companies with robust data analytics capabilities and large, engaged user bases will become increasingly valuable acquisition targets. This trend is already evident in the growing number of deals involving data-rich platforms and services. As the media industry continues to consolidate and evolve, the ability to leverage data and analytics for competitive advantage will be a critical factor in determining the success of potential acquisition targets.

In conclusion, the media industry deal landscape in 2025 is set to be dynamic and promising, driven by evolving carriage agreements, the transformative potential of GenAI, the increasing demand for live sports and exclusive content, and the growing importance of data and analytics. As the industry continues to evolve, informed investors should keep a close eye on these trends to identify attractive investment opportunities.