The entertainment industry is transforming fast driven by studio mergers, global content strategies, short-form demand, and powerful new tech. In this interview, Sohonet CRO Dennis Rose breaks down the trends reshaping streaming, production workflows, and the future of content creation.

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The Power of Consolidation: Reshaping Streaming and Storytelling at Scale

How is Industry consolidation changing the future of streaming and content creation? 

The recent industry consolidation, of course, is nothing new. This industry has reinvented itself several times over the last century. Each time it does, it comes out better. The coming together of Warner Brothers and Discovery, and the more recent acquisition of Paramount by Skydance, has led to larger studio organizations that have more capability and more resources. And I think what will happen, though, at the same time—as with every consolidation in any industry—is that some people will leave. In a way, that's a good thing. It's almost a rainmaker effect, if you will, because they go off and create new studios, new tools, and new projects that benefit viewers in theaters, on TV, and in streaming.

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How has consolidation impacted ad-supported streaming?

Consolidation has paved the way for a significant rise in ad-supported streaming—today, 43% of streaming subscriptions are ad-based. This is because today's viewers are becoming a little more tolerant of commercials. On the other hand, you could also argue that many people are simply looking for more affordable ways to consume content. Ad-supported streaming services and fast channels on TV, which are also ad-supported, help with that. They extend streaming services to younger audiences with limited budgets, as well as to people around the world who are happy to access great content from streamers through an ad-based model. Another notable outcome of consolidation is the convergence of gaming and film.

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And what is the significance of the convergence between gaming and film?

This convergence is not a new concept, as we’ve seen with films like Lara Croft: Tomb Raider, based on the Tomb Raider game, followed by Warcraft, Super Mario, The Last of Us, and Arcane from Riot Games. This trend is happening because people want to experience the powerful storytelling in games in a more extended format. Not everyone is a gamer, so this convergence helps bring the incredible narratives from interactive games to new audiences, opening up new markets. It also enriches the gaming industry by providing the film industry with fresh IP to develop. This blending of gaming and film is a win for both industries.

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After Peak TV: How Production is Evolving in a Leaner, Smarter Industry

What's changed in the industry since the record production volumes of the peak TV era?

Since the peak of TV production, the entertainment industry has experienced several significant shifts, ranging from studio consolidations and evolving post-production workflows to changes in consumer behavior and investment patterns. 

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How Has Studio Consolidation Impacted the Industry?

One of the most notable changes at the studio level is the consolidation of major players in the industry. For instance, we’ve seen the merger of Warner Brothers and Discovery, as well as Skydance acquiring Paramount Pictures. These mergers have enabled studios to amass greater resources, providing more scale and storytelling capability. However, this consolidation also brings new challenges. Studios are now under increased pressure to find efficiencies, adopt affordable tools, and operate in cost-effective locations. The phrase 'location, location, location' has never been more relevant. Many productions are now being shot in overseas markets—whether it’s for the tax credits these regions offer or the lower production costs. This shift not only helps studios stay competitive, but it also benefits local markets by creating jobs and enriching the global storytelling landscape.

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What Role Does AI Play in This Shift Toward Global Content?

AI plays a significant role in the shift toward global content by enhancing the capabilities needed for large-scale distribution. It’s challenging to produce a film and distribute it to 120 countries without effective localization. AI, though often seen as a cliché term, has become a real game-changer in this process. It helps make subtitling and dubbing faster, more accurate, and more efficient. This technology enables studios to reach new markets, tell stories in previously untapped cultures and languages, and expand their audience in ways that weren’t possible before.

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How Has Post-Production Evolved in the Wake of Peak TV?

Post-production has also undergone major changes in recent years. We’ve seen many VFX, color, and editorial houses merging to survive and grow in a shifting market. In addition to merging, many of these companies have expanded into new areas like gaming, advertising, and music. This diversification helps them remain agile in an ever-changing industry. One of the most significant changes in post-production workflows is the shift to remote work. Thanks to technological advancements, post-production teams can now work from anywhere—whether it’s their homes, rental studios, or remote offices—without sacrificing the quality of their output. This flexibility allows companies to tap into global talent pools and focus on creative endeavors instead of logistical constraints.

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What Impact Has Consumer Behavior Had on Content Creation?

Another crucial factor influencing industry changes is consumer behavior. The demand for short-form content is skyrocketing, with platforms like TikTok, Instagram Reels, and YouTube Shorts leading the charge. Consumers now expect both long-form and short-form content, which has created a thriving content creator economy worth $95 billion. As a result, studios and producers are adjusting their strategies to meet the growing demand for short, engaging content.

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How Have Investment Patterns Shifted in Response to Global Uncertainty?

Investment in the entertainment industry has also shifted significantly. Due to the uncertainty brought on by COVID-19 and industry strikes, there has been a decrease in overall capital investment. This reduction has led to a 'do more with less' approach. Companies are focusing on making smarter decisions, optimizing workflows, and investing in cost-effective tools to stay competitive. In this new landscape, efficiency is more important than ever.

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The Rise of Short-Form: Why Production is Adapting Fast

How is the rising demand for short form content, like social media campaigns, influencing the production landscape?

The movement of viewers toward short-form content is revolutionizing production. There's no way you can take the baseline costs of a film or TV project and apply them to a 60-second Instagram Reel. The content economy today—driven by platforms like TikTok, Instagram Reels, and YouTube Shorts—requires tools that are affordable, scalable, and reliable.

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Why is short-form content becoming so popular?

This shift is happening because consumers increasingly prefer bite-sized content. A study from the University of California, Irvine, measured people's ability to focus on a screen. In 2002, the average attention span was 2.5 minutes. By 2012, it had dropped to 47 seconds. By 2017, it was just 8.5 seconds—about the same as a goldfish’s 9-second attention span. Today, that trend continues, with viewers consuming content while multitasking. The second screen, once a novelty, is now the norm.

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How is this demand impacting production workflows?

With the growing demand for short-form content, production workflows must evolve. The traditional high-cost production models for film and television don’t apply to fast-paced, short-form content. Instead, creators need faster, more cost-effective ways to produce high-quality content at scale.

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What does the future look like for short-form content?

This emerging and rapidly expanding part of the industry is pushing content creators and production teams to find new ways to work efficiently. It’s reshaping the entire production landscape and will continue to drive innovation in the years to come.

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The Shift to Regional and Non-English Streaming

How are streaming platforms adjusting their strategy to focus more on regional and non-English content?

Streamers have been increasing their production in overseas markets in recent years. The reason is simple: it costs less. The production costs for crew, talent, travel, hotels, catering, and security are all significantly lower in certain regions, making international production a financially attractive option.

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How much can studios save by producing outside the U.S.?

A head of scripted for a studio recently shared an example: Producing one episode of a mid-range reality show in the U.S. costs $350,000. Producing that same episode in Canada? $150,000. That’s a major cost reduction, making it a no-brainer for streamers to shift productions overseas.

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Are there financial incentives beyond lower costs?

Yes—tax credits are another major factor. Many governments offer substantial tax incentives to encourage studios and streamers to film or handle post-production in their regions. These incentives can significantly offset overall production expenses.

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How does this impact localization and audience reach?

Producing in local markets also helps streamers cater to regional audiences. With improved AI tools for subtitling and dubbing, it’s now easier than ever to localize content into multiple languages. This benefits both the studios—by expanding their global reach—and local markets, which gain access to more diverse content tailored to their cultural context.

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The Cloud Takeover: How Hyperscalers Are Reshaping Production

What’s the bigger picture for the streaming industry?

By combining cost savings, tax benefits, and improved localization tools, streamers are making a strategic shift towards regional and non-English content. This not only helps optimize budgets but also meets the growing demand for culturally rich storytelling across global audiences.

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How are hyperscalers like AWS, Google and Azure transforming production workflows?

Public cloud providers, or hyperscalers like AWS, Google Cloud, and Azure, are revolutionizing production workflows by enabling real estate agility. Traditionally, post-production artists had to work on-site because their equipment—PCs, monitors, and color boards—were physically located in a studio. But now, thanks to advancements in networking (including solutions from Sohonet) and remote desktop software like PCIP protocol (formerly Teradici, now HP Anyware) and Jump Desktop, artists can work from anywhere.

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What does this mean for hiring and talent flexibility?

Post-production houses are no longer limited to hiring local talent. Instead, they can recruit the best artists globally, without requiring them to be physically present at a studio five days a week. One post house we work with in London, for instance, has a highly skilled colorist who works seamlessly from Belgium.

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How do hyperscalers help with cost savings?

Another major advantage of using public cloud services is the ability to scale technical resources up or down based on project needs. Instead of investing in expensive hardware that requires ongoing maintenance and depreciation, studios can rent computing power and software only when needed, significantly reducing costs.

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What financial shift is happening in production workflows?

Studios are moving from a CapEx (capital expenditure) model to an OpEx (operating expenditure) model. This shift allows for greater financial flexibility, as companies no longer need to make large upfront investments in equipment. Instead, they can pay for services as they go, optimizing budgets and improving overall efficiency.

By leveraging hyperscalers, studios can reduce costs, increase talent flexibility, and scale resources efficiently, making cloud-based production the new industry standard.

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Click here to watch the full interview on YouTube and hear his in-depth perspective on the trends transforming the entertainment industry.