WarnerMedia has ceased the operations of its three niche video streaming websites within the month of October.
On October 16, the multinational entertainment and mass media conglomerate has shut down DramaFever which specifically offered Korean drama.
What followed was Super Deluxe on October 19 which centered on comedy. Finally, operations of the classic film streaming service, FilmStruck, have permanently halted on October 26.
The shutting down of the three streaming services happens after the announcement of AT&T, WarnerMedia’s umbrella organization, that it intends to offer one large, broad-based streaming service.
This agenda would comprise WarnerMedia properties, including HBO. In addition, the maneuver would enable the world’s largest telecommunications operator to be efficient in operating expenditures.
However, AT&T is predicted to facilitate its market contenders like Netflix, Disney, and other smaller firms to gain market share.
Approximately 10 to 15 million cinephiles patronized FilmStruck. Meanwhile, more than 20 million drama fans enjoyed the content offered by DramaFever.
The management for DramaFever said in a statement that it was stopping the service because of business grounds.
Moreover, it was taking the dynamic Korean drama content marketplace into consideration. Launched in 2009, DramaFever helped escalate the popularity of Korean drama, otherwise known as K-drama.
The New York City-headquartered streaming service facilitated the surge in licensing outlay as more market contenders like Netflix bid on the streaming rights.
Based on reliable news sources, an estimated increment of 25 percent has characterized the price to license similar content.
This trend may have applied to Super Deluxe’s production expenditures and FilmStruck’s classic movie library.
As AT&T appears to be concentrating on the efficiency factor, it may have reckoned that a single streaming service is a better idea.
Consisting of content from Turner, Warner Brothers, and HBO, apparently, WarnerMedia plans to apply its learnings from its three defunct niche services to its parent organization’s looming streaming service in 2019.
However, considering the cutthroat competition that typifies the streaming service terrain, WarnerMedia might certainly find it challenging to gain audiences because of its myriads of formidable rivals.