Tuesday, May 30, 2023
  • About
  • Privacy Policy
  • Editorial Principles
  • Why to trust us
  • Contact
Scoop Nova
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
Scoop Nova
  • Home
  • Business
  • Technology
  • Scandals
  • Politics
No Result
View All Result
Scoop Nova
Home Business

Streaming wars are over: What’s next for media

admin by admin
May 11, 2023
in Business
0
Streaming wars are over: What’s next for media
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

Robin Beck | Afp | Getty Images

I’m calling it The streaming wars are over. 2019-2023. RIP.

The race among the largest media and entertainment companies to add streaming subscribers has ended because consumers know they will only pay for a limited number of subscribers. Indeed, the participants are still running. They are no longer trying to win.

disney The company’s flagship streaming service, Disney+, lost 4 million subscribers in the first three months of the year, announcing the company’s streaming subscriber count fell from 161.8 million to 157.8 million. Did. Disney has lost 4.6 million customers to his Indian streaming service, Disney+ Hotstar. In the US and Canada, Disney+ subscribers fell by 600,000.

It has become clear that the largest media and entertainment companies are operating in a world that no longer sees massive growth in streaming subscribers. Netflix Added 1.75 million subscribers It reached 232.5 million worldwide in the first quarter. warner bros discovery add 1.6 million 97.6 million people landed.

The current big media narrative is about monetizing streaming. Warner Bros. Discovery announced last week that its U.S. direct-to-consumer business posted a profit of $50 million in its fourth quarter and will remain profitable this year. Netflix’s streaming business turned profitable during the pandemic. Disney announced Wednesday that its streaming losses narrowed from $887 million to $659 million.

read more: Iger praises rival Universal’s ‘Super Mario Bros. Movie’

Netflix has curbed content spending growth, with Warner Bros. Discovery and Disney both announcing thousands of job cuts and billions of dollars in content spending cuts in recent months. Chief Financial Officer Christine McCarthy said on Wednesday’s earnings call that Disney will “produce less content” going forward, but Chief Executive Bob Iger said that it will He said he did not believe it would have an impact on subscriber growth.

There is still some growth among smaller players. of NBCUniversal Peacock Acquisition We had 2 million subscribers in the last quarter and now we have 22 million subscribers. Paramount Global Added 4.1 million subscribers this quarterputting it at 60 million subscribers.

But the key question isn’t looking at growth rates, it’s investors’ reaction to growth rates.Paramount Global 28% drop in one day last week After the company announced it would cut its dividend from 25 cents per share to 5 cents per share to save cash.

Disney+ Hotstar subscribers earned just 59 cents, up from 74 cents last quarter. Disney seems fine with losing these low paying customers. Disney gave up streaming rights to Indian Premier League cricket last year. These rights were acquired by Viacom18 for $2.6 billion. A minority shareholder of Viacom18 is Paramount Global.

Disney also announced price increase The ad-free Disney+ service will launch later this year. Disney’s average revenue per user for US and Canadian subscribers increased 20% in the most recent quarter after yet another price increase announced last year. If growing subscribers is a priority, large price increases are typically not a strategy used by executives.

what’s next?

Raising prices and cutting costs is not a good growth strategy. Streaming was a growth strategy. Perhaps with a cheaper ad tier and Netflix’s impending crackdown on password sharing, it’ll come back a bit.

However, growth is highly unlikely to return to the levels seen in the early days of the pandemic and mass streaming.

You might also like

Commercial real estate firms join to recruit Black student-athletes

Ford Tesla EV charging deal puts pressure on GM

American Eagle Outfitters AEO shares plunge after earnings report

This probably means that the media and entertainment industry will need a new growth story soon.

The most obvious candidate is gaming. Netflix has launched a fledgling video game service.comcast Considering buying EA last yearfirst reported by Pack. microsofts activision contract It is now at risk after UK regulators blocked the deal. If the acquisition fails, Activision It could be a target for legacy media companies looking for more exciting stories to tell their investors.

in the meantime Disney shuts down Metaverse division Blending intellectual property and gaming as part of recent cost cuts seems like an obvious match. You can easily imagine the growth potential of doing.

More consolidation will eventually occur among legacy media companies. But the acquisition of one major gaming company could have ripple effects in the industry.

Perhaps Game Wars is the next chapter.

Disclosure: NBCUniversal is the parent company of Peacock and CNBC.

Tags: Activision Blizzard IncBulletin: BusinessBusiness newsMediaMicrosoftNetflix IncParamount Globalstreamingtechnologywalt disney companyWarner Bros. Discoverywarswhats
Previous Post

Vision Fund posts $32 billion loss

Next Post

Debt ceiling explained: What to know

admin

admin

Related Posts

Commercial real estate firms join to recruit Black student-athletes
Business

Commercial real estate firms join to recruit Black student-athletes

by admin
May 29, 2023
Ford Tesla EV charging deal puts pressure on GM
Business

Ford Tesla EV charging deal puts pressure on GM

by admin
May 27, 2023
American Eagle Outfitters AEO shares plunge after earnings report
Business

American Eagle Outfitters AEO shares plunge after earnings report

by admin
May 25, 2023
SpaceX set to join FAA to fight environmental lawsuit over Starship
Business

SpaceX set to join FAA to fight environmental lawsuit over Starship

by admin
May 23, 2023
DOJ wins suit to undo JetBlue, American Airlines Northeast partnership
Business

DOJ wins suit to undo JetBlue, American Airlines Northeast partnership

by admin
May 21, 2023
Next Post
Debt ceiling explained: What to know

Debt ceiling explained: What to know

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The U.S. and China have a culture clash around their telephone hotline

The U.S. and China have a culture clash around their telephone hotline

February 28, 2023
Lavrov criticized for Russia’s war in Ukraine at UN

Lavrov criticized for Russia’s war in Ukraine at UN

April 25, 2023

Categories

  • Business
  • Politics
  • Technology

Don't miss it

Commercial real estate firms join to recruit Black student-athletes
Business

Commercial real estate firms join to recruit Black student-athletes

May 29, 2023
Wharton’s Jeremy Siegel predicts Big Tech boom fueled by A.I.
Technology

Wharton’s Jeremy Siegel predicts Big Tech boom fueled by A.I.

May 29, 2023
What’s in the debt ceiling deal struck by Biden and McCarthy?
Politics

What’s in the debt ceiling deal struck by Biden and McCarthy?

May 29, 2023
Ford Tesla EV charging deal puts pressure on GM
Business

Ford Tesla EV charging deal puts pressure on GM

May 27, 2023
Tech stocks are back, driven by A.I. craze, slowing rate hikes
Technology

Tech stocks are back, driven by A.I. craze, slowing rate hikes

May 27, 2023
JPMorgan CEO Jamie Dimon deposed in Jeffrey Epstein suit
Politics

JPMorgan CEO Jamie Dimon deposed in Jeffrey Epstein suit

May 27, 2023
Scoop Nova

Scoop Nova is the only worldwide news organization with a European perspective, and it’s where the rest of the world goes to hear what the World has to say.

Categories

  • Business
  • Technology
  • Scandals
  • Politics

Quick Links

  • About Scoop Nova
  • Contact us
  • Editorial Principles
  • Why to trust us
  • Privacy Policy
  • Sitemap

Recent News

Commercial real estate firms join to recruit Black student-athletes

Commercial real estate firms join to recruit Black student-athletes

May 29, 2023
Wharton’s Jeremy Siegel predicts Big Tech boom fueled by A.I.

Wharton’s Jeremy Siegel predicts Big Tech boom fueled by A.I.

May 29, 2023

© Copyright 2022 ! All rights are reserved by scoopnova.com

  • Home
  • Business
  • Technology
  • Scandals
  • Politics

© Copyright 2022 ! All rights are reserved by scoopnova.com