New figures from S&P Global Market Intelligence data show private equity and venture capital firms invested $370 million into streaming media companies worldwide in 2022, down 73 per cent from $1.38 billion in 2021.
The number of private equity-backed transactions involving companies that provide video streaming services, audio streaming and television shows fell from 35 to 29 during the period.
So far in 2023, just three deals have been completed, said the analysts.
Many streamers today face growth and profitability challenges amid inflation and rising competition, according to a report from Kagan, a media research group within Market Intelligence.
“In the post-pandemic world, some subscription video-on-demand players now face customer retention issues and often incur operating losses,” the report said, adding that the streaming industry is shifting out of growth mode to target profitability.
The report found that deal activity in the global streaming industry last peaked in 2019 with the completion of two deals each worth at least $3 billion. In one transaction, the largest in at least the last five years, Bain Capital Pvt. Equity LP acquired 60 per cent of the UK’s The Kantar Group Ltd. from WPP PLC for $3.33 billion.