PwC signals end of standalone streaming era, projects robust 2026 deal activity

PwC’s outlook for media and telecommunications deals in 2026 suggests the streaming sector’s long-anticipated consolidation phase has arrived, with executives now treating platform scale as a prerequisite for survival rather than a competitive advantage.

Deloitte forecasts streaming and broadcast shifts as video formats fragment

The firm’s “Media and Telecommunications: US Deals 2026 Outlook” forecast points to Netflix’s proposed $82.7 billion acquisition of Warner Bros. Discovery as evidence that standalone streaming platforms face an increasingly difficult path forward. The transaction, which represents the largest streaming deal to date, follows years of industry speculation about which services could maintain independent operations.

“We’ve been expecting streaming consolidation for several years at this point—and now our prediction is finally coming to fruition,” said Bart Spiegel, a partner in PwC’s media and entertainment practice.

The report indicates that deal value in media and telecommunications rose 61% between the second half of 2024 and the same period in 2025, driven by what PwC describes as improved financing conditions and renewed investor interest in content libraries and intellectual property. That figure excludes the Netflix-Warner Bros. Discovery transaction, which was announced on December 5.

Beyond streaming, the gaming sector drew substantial capital deployment.

The Saudi Public Investment Fund, along with Silver Lake and Affinity Partners, completed a $55 billion take-private of Electronic Arts. PwC’s analysis suggests investors view gaming studios’ recurring digital revenue models and owned IP as particularly attractive assets.

The sports category also saw significant transaction activity.

The Los Angeles Lakers sold for $10 billion, establishing what PwC characterizes as a new valuation benchmark for professional sports franchises. The firm’s report frames sports properties as sitting “at the intersection of media, entertainment, and private capital,” with live broadcast rights and venue infrastructure contributing to valuations.

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In telecommunications, operators appear focused on capital recycling strategies. AT&T’s pending $5.75 billion acquisition of Lumen Technologies’ consumer fiber business—covering approximately 1 million existing locations and 7 million planned sites—is scheduled to close in early 2026. PwC interprets the transaction as indicative of industry efforts to fund 5G infrastructure and prepare networks for AI-related compute demands.

The firm’s outlook suggests media companies should consider portfolio rationalization, potentially divesting linear broadcast assets or regional services to fund investments in premium content or platform extensions. PwC also recommends exploring alternative deal structures, including minority stakes, joint ventures and content-sharing arrangements, as methods to access necessary assets without overextending balance sheets.

The report’s framing suggests that content ownership – whether through film and television libraries, video game franchises, or sports broadcast rights – continues to drive investment decisions across the sector. PwC anticipates M&A activity in 2026 will exceed levels seen in recent years, though the firm does not provide specific volume or value projections.