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Here are the five trends leaders should watch for in 2026:
1. Frictionless entertainment goes mainstream.
After years of fragmentation, simplicity is emerging as one of the industry’s most valuable currencies. A growing feature of modern carriage agreements is the full integration of direct-to-consumer (DTC) services directly into the multichannel video programming distributor (MVPD) interface. This evolution signals a shift toward unified aggregation that includes legacy linear channels, streaming apps and premium services delivered through a single, coherent entry point.
Consumers are reinforcing this push. According to the EY Decoding the Digital Home 2025 Study, households don’t necessarily want more content, they seek a better mix of live TV, channels and dedicated apps; greater customization; more guidance on underused services and overall simplification.¹ Fragmentation remains a primary pain point, especially for sports fans navigating rising costs and splintered rights.
In 2026, the next-generation bundle will continue to take shape. Distributors will pursue deeper integrations of DTC apps to provide subscribers with additional convenience and value, while media companies will rationalize sprawling network portfolios to improve economics and reduce consumer friction. Aggregation is returning, but the questions yet to be answered are: Who will own the customer experience and will these models create sustainable value instead of merely extending legacy economics?
Look for industry players to redesign access around utility, transparency and ease. Frictionless experiences across streaming, live events, cruises, theme parks, travel, gaming and sports will increasingly separate leaders from the rest of the field.
2. Tech giants crash the Hollywood party in media consolidation 2.0.
The next wave of consolidation will differ from the last. Legacy operators are disaggregating declining linear networks from faster-growing streaming, studio and digital-first businesses via SpinCos and RemainCos. These structural shifts allow companies to pursue distinct capital strategies, investment profiles and M&A opportunities tailored to vastly different growth outlooks.
Meanwhile, following years of speculation about their strategic intentions in media, the largest digital platforms are now fully engaged in the Hollywood consolidation conversations. They’re competing to secure scarce intellectual property (IP), rationalize a fragmented streaming environment and achieve scale advantages that traditional media players can’t match. Their participation may serve as a catalyst for broader realignment across content libraries, sports rights and distribution systems.
However, not every company will find a partner. As always, M&A cycles create winners, while leaving others searching for strategic alternatives. Alliances, commercial partnerships and distribution tie-ups, which have been discussed in the past but are rarely executed, may finally materialize in 2026 as frustrated bidders explore new paths to relevance.
For all M&E players, the hurdles remain high. Regulatory uncertainty, timing risks, integration complexity and the real possibility of strategic isolation could sour well-laid plans. But many M&E companies will forge ahead undeterred, laser-focused on cost rationalization, content consolidation and subscriber scale in DTC services. Leaders should prepare for a year defined by structural moves rather than incremental adjustments.