Business
The Gathering Storm: Turbulent Times in the Entertainment Industry
Explore the turbulent times in the entertainment industry with ‘The Gathering Storm’. Delve into the challenges and changes shaping the future of this dynamic and ever-evolving sector.
The Gathering Storm
When the media titans Brian Roberts, John Malone, and Barry Diller set sail in early February on Mr. Diller’s 156-foot, two-masted yacht, named Arriva, the waters off the coast of Jupiter, Fla., were serene. However, the tranquility on the yacht contrasted with the turbulent state of their entertainment empires.
A Shifting Landscape
During their meeting aboard the yacht, the trio acknowledged the unsustainability of the money-losing status quo in the streaming industry. The traditional cable model was rapidly losing ground, prompting discussions on what would replace it.
Turbulent Times
The once-dominant Paramount, owning the renowned Paramount studio, CBS, and numerous cable channels, underwent leadership changes and failed sale attempts. Warner Bros. Discovery grappled with significant debt, while Disney faced layoffs and leadership changes amid mounting streaming losses. Legacy media stocks plummeted, reflecting the industry’s turmoil.
Even Disney, at about $102, is down more than 16 percent from the price reached in March. Paramount, under the control of Shari Redstone, incurred a $1.6 billion loss on streaming last year. Comcast’s Peacock streaming service resulted in a $2.7 billion loss. Disney’s streaming services, including Disney+, Hulu, and ESPN+, reported about a $2.6 billion loss. Warner Bros. Discovery claimed a marginal profit for its Max streaming service in the previous year, largely due to including HBO sales through cable providers.