Tech giants flock to Sun Valley with streaming partnerships at the forefront.

• This week, at the Sun Valley Lodge in Idaho, the titans of media and tech will gather for Allen & Co.'s annual conference.
• Business leaders are likely to focus on streaming and potential alliances to increase profitability during their discussions.
• Live sports rights will attract the largest audiences, and sports will be a significant topic in conversations.

This week in Sun Valley, streaming's future will be discussed by media and technology giants, with the possibility of alliances being formed.

The annual conference of Allen & Co., famously known as "summer camp for billionaires," commences at an Idaho ski lodge on Tuesday. Since its inception in 1983, the conference has been the birthplace of significant media deals and has provided a platform for industry leaders to discuss the future of their businesses and the broader economy.

The Sun Valley invite list reportedly includes prominent media leaders such as David Zaslav, Bob Iger, and his potential successors, as well as co-CEOs Ted Sarandos and Greg Peters. Additionally, tech titans like Andy Jassy and Jeff Bezos, and CEO Tim Cook are also reported to be on the list. However, it is uncertain if these heavy hitters will attend the conference this year.

After months of negotiations, National Amusements, the controlling shareholder of , agreed to merge the media company with Skydance. As a habitual attendee, Shari Redstone is also on the guest list, and her participation at the conference will follow the merger agreement.

The Skydance agreement includes a 45-day "go-shop" clause, which means potential bidders still have time to make their offers. As a result, discussions about the dramatic deal process may circulate throughout conversations. Additionally, Sun Valley may also be a key setting for more deal discussions.

The Paramount deal will serve as the backdrop to a broader discussion on the profitability of streaming businesses, as media companies shift their focus from competing for subscribers to collaborating for success.

"According to Neil Begley, an analyst at Moody's Investors Services, the crucial topic is how these companies can make global streaming of TV accessible to all, which can be achieved through more aggressive bundling of services, joint ventures, or mergers."

Streaming alliances

Netflix, with 269.6 million members worldwide, is the leader in the streaming wars, and many other streaming services believe they can compete by offering unique combinations.

Barry Diller, a media mogul who attempted to acquire Paramount, stated that the industry should abandon the pursuit of Netflix and concentrate on the profitable broadcast and pay-TV businesses.

Paramount's future owners plan to explore partnerships or bundles with other streaming players, according to executives who spoke on a Monday investor call. Jeff Shell, who will become the next president of Paramount, views bundles and joint ventures as the future of the streaming business.

Paramount's current leadership is actively discussing a merger with another streaming platform, CNBC previously reported.

According to Shell, who spoke on Monday's call, the streaming industry will eventually resemble the pay-TV industry of the past, and the investor consortium that owns Paramount has received inquiries about potential streaming partnerships.

If you're included in the "one-stop shop" with all streaming apps, you'll succeed. Otherwise, you'll face difficulties.

Another way to achieve this is by merging or establishing joint ventures, which some media companies have already started doing.

Disney is collaborating with other companies in addition to offering its own streaming services, Disney+, Hulu, and ESPN+.

Disney+ and Hulu, along with Warner Bros. Discovery, are planning to launch a bundle this summer that combines Max with their streaming services. Additionally, the two companies are collaborating on a sports streaming service that is expected to launch in the fall.

""Alliances are necessary due to the desperation of the media industry, which can no longer function effectively on its own, as stated by Jonathan Miller, CEO of Integrated Media," said Jonathan Miller, CEO of Integrated Media."

To increase revenue, Sun Valley should consider raising streaming prices on premium tiers and promoting ad-supported options, according to Begley.

Mark Boidman, head of media and entertainment investment banking at Solomon Partners, stated that he believes Sun Valley will prioritize addressing the question "What do we do?" as it pertains to the various media companies that once held significant influence and financial power in Hollywood but are now facing increased competition.

Sports center

The ongoing media rights negotiations with the National Basketball Association will keep sports as a topic of discussion at this year's conference.

The Sun Valley conference has traditionally been attended by league commissioners, including the National Football League's Roger Goodell. However, in recent years, streaming and tech companies have increasingly claimed a larger share of the space, with legacy companies taking a backseat.

The NFL has signed 11-year media rights deals worth over $100 billion, and the league has shown it believes streaming to be crucial to its future. Amazon is the exclusive home of "Thursday Night Football," while Google's YouTube TV recently acquired the rights to "Sunday Ticket." Recently, Netflix announced it would begin airing NFL games on Christmas day.

Warner Bros. Discovery, the current NBA rights holder, is considering whether to match a competing offer as the league finalizes smaller package deals with Disney, NBCUniversal, and Amazon.

"The NBA is the last-of-its-kind deal for traditional players, and in 8 to 10 years, they won't be able to compete," said Miller. "A major topic at Sun Valley is how deep we are going in sports."

Sports continue to be a crucial element in maintaining the traditional pay TV package and have also proven beneficial for streaming platforms. Live TV, particularly sports and news, attract the highest viewership.

"The decline of the linear TV business and the lack of sports rights for some time suggest that Amazon and Netflix will have a larger role in the future of sports rights," said Begley. "Legacy media's dominance in sports rights may come to an end as streaming becomes more profitable."

Politics talk

Politicians, economists, and leadership from U.S. universities are also typical attendees at Sun Valley.

The upcoming elections are expected to be a major topic of discussion at Sun Valley this week, according to Miller.

Many business leaders have been holding off on pursuing megadeals due to the uncertain regulatory environment and high interest rates, which have made deal-making difficult.

The political conversation is likely to focus on whether President Joe Biden should remain the Democratic party's candidate after his poor debate performance.

Lately, prominent donors to the Democratic party have been urging Biden to forgo running for president in 2024.

A growing number of dissenting voices and donors, including media heavyweights such as Diller, Ari Emanuel, Reed Hastings, Damon Lindelof, and former Disney Studios chairman Jeffrey Katzenberg, believe that Biden should step aside to make way for a new candidate.

Abigail Disney, the heiress of Disney, has stated that she will withhold funding for the Democratic party until Biden withdraws from the race.

In a recent interview, the President stated that he has no intention of withdrawing from the election and emphasized the importance of his mental well-being.

Disclosure: Comcast's NBCUniversal is the parent company of CNBC.