The Streaming Wars’ Post

After a turbulent period, the entertainment industry is shifting toward stability through AI-powered efficiencies, cost-cutting, and global ad-supported models. As profitability replaces aggressive expansion, companies are recalibrating how they approach production and distribution. In this article from The Streaming Wars, industry experts share their thoughts on the upcoming media reset. Mrugesh Desai, our VP of North America, highlights the strategic groundwork laid in 2024 - “With the U.S. elections behind us, media companies will refocus on growth, creating new opportunities for B2B partners.” Read the full article here: https://lnkd.in/d3BpYSAx

The business of television has been upended in the last several years, but all the promised innovations of the streaming era have not panned out and the industry would do well to re-embrace long-established ways of doing business. Why it matters: After the escalation of streaming and ensuing mergers and layoffs (and then a global pandemic and two drawn-out strikes), the business has changed for the worse and sent the economics of the industry into a state of panicked chaos. Now more than ever, it’s important to be able to step back from it all and look fresh at the economics of television that provided stability and normalcy for decades before the recent disruption. Back to the future: Ken Basin, a veteran business affairs executive, wrote the definitive bible of how the industry works in 2018’s The Business of Television. In his forthcoming revised edition, due out in September, he argues that old business methods can — and are — being brought back to save television, starting with advertising. Windowing, or the sequential availability of titles by exhibitors, meanwhile, has declined dramatically in recent years but is being revived to connect with untapped pockets of viewers. Finally, bundling is also making a comeback, relieving consumers of decision fatigue. For more... read the full story on The Ankler. This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.

Witnessing ongoing layoffs in the television industry is truly disheartening. It appears that more layoffs are expected at several networks in the coming months. The industry needs to stabilize by assessing their actual staffing needs and valuing the experienced workers who have dedicated the best years of their lives to these companies. It’s vital to avoid further layoffs of seasoned professionals, as their expertise is invaluable. Many talented individuals are now facing uncertainty as their retirement plans are jeopardized. Fortunately, larger non-network station groups are stepping up, offering opportunities in medium to smaller markets to some of the best professionals from major markets. For those navigating job losses, remember to approach this challenge with the same determination and confidence you had when you started your career. Network, update your resume, and leverage your experience to find new opportunities. Stay fearless and confident, remember you are an expert in your field! #YouGotThis #NetworkLayoffs #NothingCanStopYou The Wann Agency Suggestions for Job Seekers in TV: 1. Network Actively: Connect with former colleagues, industry groups, and attend virtual events to expand your professional network. 2. Update Your Resume and Portfolio: Ensure your resume highlights your experience and achievements. Create an online portfolio showcasing your best work. 3. Leverage Social Media: Use platforms like LinkedIn to share your expertise, connect with industry leaders, and search for job openings. 4. Consider Different Markets: Be open to opportunities in smaller markets or different segments of the industry that can benefit from your skills. 5. Continuous Learning: Stay updated with industry trends and consider online courses or certifications to enhance your skills. 6. Seek Professional Help: Consider career counseling or coaching to refine your job search strategy and interview skills.

From THR: But with that glimmer of deals in the eyes of the CEOs comes a cold hard reality: Thanks to cord-cutting, the assets in their portfolios, the cards in their hand, are losing value every day. But a few – perhaps very few – could emerge from the current tumult even more valuable than they were before. Which is why these companies are hoarding them, even as they contemplate larger deals. A quick glance shows some themes emerging: Studios — both film and TV — are crown jewel assets, comprising the core of the content engines for these companies and a fount of intellectual property. Film studios in particular are viewed as brand-builders in an era where IP is still in hot demand. Broadcast networks, likewise, are crown jewel assets, given their established three-letter brands, reach and scale in sports and news. And even a few stray cable channels are finding themselves anointed as crown jewels, with the parent companies expressing confidence that they will survive even in the event of a cable TV catastrophe. Just look at @Warner Bros. Discovery, which is dividing its business lines in two: “Global Linear Networks” and “streaming and Studios.” On one side is the cash cows of the company, linear TV channels like CNN , TNT and TBS. On the other is the Warners film and TV studios and the streaming service Max, which see growth on the horizon. But Warners is also strategically taking HBO , one of the best-known brands from the cable TV era, and putting it in the streaming and studios bucket. At Comcast, its cable split will see the company keep its TV and #film studios, as well as Peacock , while spinning off its linear channels. That is, with a couple of exceptions: NBCUniversal and the cable channel Bravo will remain with Comcast And while companies like The Walt Disney Company and Paramount have not restructured like Comcast or WBD, they have also quietly signaled that their priorities lie with some sub-brands, and not with others. 2025 is shaping up to be a big year for deals, given the Comcast spinoff, the (presumed) closing of the Skydance -Paramount deal, and other potential combinations. “In addition to WBD, we anticipate other media companies will consider parting with some of their cable #TV network assets now which could drive an effective industry roll up vehicle,” a Bank of America research team led by Jessica Reif Ehrlich wrote . “These assets should be better positioned as a consolidated, linear-focused vehicle with scale benefits that can drive affiliate and advertising negotiation as well as synergies.” But the largest entertainment companies, it seems, have already picked their winners and losers, keeping their favored business units close, and leaving other to hang out to dry. In the #streaming era, brands still matter, and studios still matter, but the companies at the heart of the #entertainment business are already making tough choices about where to place their bets.

This is one of the best posts that I've read for a while. Please check the additional link in Marion Ranchet 's post comments to have a better understanding and examples.

“Notes on Hollywood’s Demise” by Claude 3.5 Sonnet 9:41 am PDT, Tuesday, August 20, 2024 Based on the information provided in the newsletter, it seems Hollywood is going through a difficult period of layoffs, restructuring, and shifting industry dynamics. A few key points: 1. Major media companies like Paramount Global, Warner Bros. Discovery, and Disney have all undergone significant layoffs, with Paramount expected to cut around 15% of its staff by the end of the year. 2. The closure of Paramount Television Studios is seen as an example of the "full-on reset" the film and TV business is enduring in the aftermath of the streaming wars. Companies are trying to cut costs and adapt to the new streaming-dominated landscape. 3. The newsletter notes that "the cable TV business continued to disintegrate, like a slowly melting glacier that suddenly broke into pieces." This suggests traditional TV models are becoming increasingly obsolete. 4. While new show commissions are up 39% in the first half of 2024 compared to the second half of 2023, they are still down 9.9% compared to the same period in 2023, and way down from the "peak TV" levels of 2022. This indicates the industry has not yet fully recovered. 5. There's a sense of uncertainty and caution, with some speculation that studios held back on productions in the first half of 2024 out of fear of potential crew member strikes. Based on these trends, it seems Hollywood is still in a difficult transitional period, with more pain and disruption potentially on the horizon. The newsletter conveys a sense that the industry may not be able to simply return to the "glory days" of peak TV anytime soon. Continued cost-cutting, restructuring, and adapting to the new streaming-driven landscape appears to be the reality for Hollywood in the foreseeable future. However, it's difficult to predict exactly how far the industry could sink, as much will depend on factors like consumer habits, technological shifts, and the ability of companies to find successful new business models.

When I speak to people in and out of the media business, they all ask one question: “How did we get here?” https://lnkd.in/ei3p2TNi As we see layoffs at WBD, incoming at Paramount and then so many others, people want to know why did this happen? These are crown jewel companies with valuable IP! What I saw inside one of them was two countervailing forces: 1. The need to for stockholder satisfaction at the expense of customer satisfaction 2. The innovator’s dilemma writ large What does that mean? 1. Once streaming entered the arena, Wall Street valued Netflix at tech company multiples and encouraged legacy media to throw everything at getting into streaming and growing fast. Mergers, consolidation and more prevailed in the race to get bigger. Everyone had the data - only a few of these streamers would survive, because customers didn’t want dozens of services. They wanted 3-4. But in a rush to satisfy Wall Street, everyone got in. And when Wall Street changed their minds in 2022, the companies were left holding the bag. 2. When I started in media in 2007, we all knew streaming and digital was the future. We spent 75-80% of our time working on it. But the money that the cable bundle provided was hard to walk away from. Especially when trying to sell/merge a company. Legacy media could have and many wanted to get into streaming sooner. But it took money and time and a sharing of information company wide that could have been scary. So the end result? Everyone gets into streaming too late, trying to satisfy Wall Street, invests in content over building technology, loses focus on the consumer, loses focus on the brand and hopes for profitability. Whats the solution? Refocus. These are strong brands. Gen Z is the future. And they’ve got some attachment to the IP. But you’ve got to build a brand that works in streaming, linear, YouTube, TikTok, consumer products, theme parks and beyond. Multiple revenue streams, deeper engagement and focus on steady growth and nurturing fandom. Sound familiar? It should. It’s what Disney is doing. Universal has done it. It’s what we were trying to do before I left Warner Bros Discovery. Look at Gen Z. See how they interact with brands, how can you deepen their fandom and how can you monetize multiple touch points. Ignore Wall Street. Focus on growing vs cutting. If you look closely, you’ll see many brands doing this successfully in and outside of legacy media. Want me and talented colleagues to help? DM me. Needmore Stories is open for business and I’m #opentowork for the longer term.

💲 Media giants made more headway on the path to streaming profitability this earnings season. 🤑 Over the past two years, price hikes and password-sharing crackdowns, ad-supported tiers, and mass layoffs have all shaken up the industry and brought companies closer to streaming profits. ❌ But the majority of companies still don't make money in those divisions, and investors remain skeptical that profit can be sustained. Here's what we learned after this latest earnings season... Yahoo Finance #streamingwars #money #profits #business #news #finance

Warner Bros. Discovery Restructures Amid Industry Shifts Warner Bros. Discovery has announced a significant restructuring, separating its television business from its streaming and film studios. This move aims to address the evolving media landscape, particularly the rise of cord-cutting and streaming services. The company's shares rose by 13% following the announcement, reflecting investor confidence in this strategic direction. Investopedia The restructuring will create two distinct divisions: one focusing on global linear TV, encompassing news, sports, and traditional programming, and the other dedicated to global streaming platforms, including Max, and film studios. CEO David Zaslav has indicated that this new structure, expected to be in place by mid-2025, will enhance profitability and free cash flow, with an openness to various strategic options to maximize shareholder value. This development underscores the rapid transformation within the media industry, as companies adapt to changing consumer behaviors and technological advancements. Warner Bros. Discovery's proactive approach highlights the importance of agility and strategic realignment in maintaining competitiveness in today's dynamic market. #WarnerBrosDiscovery #MediaIndustry #Restructuring #StreamingServices #BusinessStrategy