As Hollywood celebrities graced the red carpet in early January, a pressing concern loomed over the glitz and glamour: Hollywood is undergoing a significant contraction.
Seventeen industry insiders, including entertainment executives, agents, and bankers, have shared their perspectives with Reuters, collectively painting a picture of a shifting landscape in the television and film industries.
From a reduced number of original series and movies to increased scrutiny of budgets and mounting pressure on cinema profits, decision-makers acknowledge that the entertainment sector is adapting to challenging economic conditions.
Notable reduction
“The great contraction is upon us,” commented one anonymous veteran television executive. “I anticipate a notable reduction in both the quantity of content and the expenditure on content.”
The ongoing contraction will be a focal point as companies like Walt Disney (DIS.N), Warner Bros Discovery (WBD.O), and Fox release their quarterly results this month.
It also sets the stage for discussions regarding potential media mergers, including recent talks of a sale between the owner of Paramount Global (PARA.O) and Skydance Media CEO David Ellison, whose studio co-produced “Top Gun: Maverick.”
Analyst TD Cowen predicted a 7% decline in broadcast and cable television advertising by the end of 2023 compared to the previous year, with Disney experiencing an 11.7% drop in total advertising, as per LSEG.
Warner Bros Discovery reported a 13% reduction in advertising during the first nine months of 2023.
Digital advertising
Traditional TV, alongside print and radio, has faced challenges due to the rise of digital advertising.
The outlook for 2024 remains unfavorable, with TD Cowen projecting another 7% decline in broadcast and cable TV ad revenue. Despite media companies expanding their digital advertising ventures, traditional TV advertising still constitutes 80% of their total advertising revenue.
Streaming services, once hailed as the future of the industry, are grappling with profitability concerns after years of extravagant spending.
As the industry enters the “third act of the streaming wars,” production spending is expected to dip below 2022 levels, signaling a shift from the previously “unsustainable” investment, according to MoffettNathanson.
Subscription fees
Most streaming platforms have increased subscription fees while offering fewer new content, raising doubts about their long-term strategies, as noted by TD Cowen.
The number of scripted series is expected to witness a significant reduction from the peak of 633 shows in 2022.
A combination of Hollywood strikes and budget constraints led to a decrease in production, resulting in only 481 U.S. series released in 2023, as reported by market research firm Ampere Analysis.
Even industry leader Netflix (NFLX.O) reduced its scripted series output by more than one-third from 2022 to 2023, according to Ampere.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
President Donald Trump has moved to reshape US trade policy on two major fronts, signing executive orders that both ease tariffs on India and threaten new levies on countries that continue to trade with Iran.
The rollback of tariffs on India follows New Delhi’s commitment to halt imports of Russian oil, a move welcomed by Washington as it seeks to tighten pressure on Moscow’s energy revenues. The decision signals a thaw in trade tensions between the two nations and underscores the administration’s willingness to reward partners that align with US foreign policy priorities.
At the same time, Trump warned that nations maintaining commercial ties with Iran could face fresh US tariffs, escalating economic pressure on Tehran and its trade partners. The move reinforces a hardline strategy aimed at isolating Iran economically, while using trade measures as leverage in broader geopolitical negotiations.
Together, the twin decisions highlight the Trump administration’s increasingly assertive use of tariffs as a diplomatic tool, targeting both allies and adversaries. From the Indo-Pacific to the Middle East, the approach underscores how trade policy is being deployed not just to protect US industries, but to advance America’s strategic interests on the global stage.
The United States has announced an additional $6 million in humanitarian aid for Cuba, bringing total assistance since Hurricane Melissa struck the island in October to $9 million. The new relief package will focus on Cuba’s eastern provinces, including Holguín, Granma, Santiago de Cuba, and Guantánamo, providing staples like rice, beans, pasta, canned tuna, and solar lamps. U.S. officials said embassy staff will monitor distribution to prevent the government from diverting supplies.
The announcement comes amid worsening energy and fuel shortages. Cuba has faced widespread blackouts, leaving millions without electricity in several provinces, while rising food prices and limited fuel supplies have intensified humanitarian pressures. Officials warn that without sufficient oil imports, hospitals, transport, and essential services could be severely affected. The crisis has escalated following U.S. restrictions on Cuba’s oil shipments and Venezuela’s inability to supply fuel, forcing Cuba to turn to Mexico as its primary energy partner.
Humanitarian situation
Cuba’s President Miguel Díaz‑Canel accused the U.S. of imposing an “energy blockade,” while Mexican officials work to deliver fuel without triggering U.S. tariffs. Díaz‑Canel expressed willingness to engage in dialogue but insisted talks must respect Cuba’s sovereignty. U.N. Secretary-General António Guterres has voiced serious concern, warning that the humanitarian situation could deteriorate further if oil supplies remain restricted.
As Cuba struggles to balance disaster recovery with an ongoing energy crisis, the international community faces a delicate challenge: providing humanitarian support while navigating complex geopolitical tensions.
SpaceX expands Starlink with a mobile device and space tracking, raising concerns over revenue and US government reliance.
SpaceX is pushing Starlink beyond internet from space, with plans underway for new consumer facing services that could reshape the telecom landscape.
The company is reportedly exploring a Starlink mobile device, positioning it as a potential rival to established smartphone players as it looks to extend its reach from orbit to everyday tech.
Starlink has become SpaceX’s financial powerhouse, generating an estimated $8 billion in revenue last year, with fresh trademark and patent filings signalling even more ambitious expansion ahead.