The traditional media and communications value chain is shifting with the rise of streaming media and cord-cutting/shaving, among other trends. As a result, the relationships between media companies and their distributors, cable and telco, are also shifting. This dynamic is no longer simply supplier and buyer; rather, they are now competitors and, in some cases, one and the same as a result of vertical integration.Changing dynamics:Traditionally, cable and telco companies (in the case of telco, those selling video packages) were merchandisers of broadcast media. They would bundle different networks and channels into subscriptions that were then sold to end consumers. In this setup, their relationship was simple: buyer and supplier.However, with the rise of streaming media, this traditional value chain began losing market share. As a result, media companies started developing their own OTT products, bypassing their traditional cable/telco buyers to go directly to the consumer. Today, most, if not all, major media conglomerates operate their own direct-to-consumer product.Cable and telco companies have responded differently to these shifting dynamics. On one end of the spectrum is the outright purchase of media suppliers. In the United States and Canada, there are several cable and telco companies that have a significant portion of their capital tied up in media holdings. For these companies, maximizing the value of their media assets is critical. Below, are a few ways in which these businesses might leverage their media assets to better compete.How telco/cable owners could maximize their media advantages:There are two major opportunities for cable and telco companies to unlock the value of their media assets:Diversification:Participate in growing OTT category opportunities and hedge against declines in traditional video bundlesDefend against rising content costs by owning means of content production directlySynergies (Value-Added Service):Bundle entertainment OTT products with traditional cable, broadband, and wireless contracts to differentiate against competitorsThe key question for this strategy is whether the inclusion of these OTT products will yield synergies beyond the dollar value of the OTT product or will consumers treat it as a form of a ‘digital gift card’.For cable and telco companies with media assets, being able to put their unique advantages to work requires clarity of vision on what role media assets will play in their overall strategy. This is by no means a simple task given that media companies and cable/telco have different histories and cultures. However, being able to do so, and bringing these assets together into a cohesive whole will yield significant benefits.To learn more about Kearney's Communications, Media, and Technology practice, please visit our sitehere.