News

Hollywood faces the great contraction as economic realities bite

Published

1 year ago

February 7, 2024

Ahron Young

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.

News

AI search evolves as Google’s owners boost value

Are advertisers concerned about AI search affecting clicks despite Alphabet’s strong Q1 driven by AI, YouTube, and Cloud?

Published

4 hours ago

April 30, 2025

ticker NEWS

Are advertisers concerned about AI search affecting clicks despite Alphabet’s strong Q1 driven by AI, YouTube, and Cloud?

Are advertisers really worried about AI search cannibalising clicks?

Alphabet just crushed expectations in its Q1 update, driven by AI, YouTube, and Cloud. But concerns around regulation and search revenue still linger.

#google #business #markets #ticker #tickernews

News

Albanese warns against Trump-style politics in Australia

Albanese warns Australia against adopting US-style politics, linking Dutton to Trump amid election discussions on trade.

Published

9 hours ago

April 30, 2025

Ahron Young

Albanese warns Australia against adopting US-style politics, linking Dutton to Trump amid election discussions on trade.

In Short

Anthony Albanese warns against the influence of US politics, particularly Donald Trump’s divisive style, on Australia.

He expressed the need to maintain Australia’s unique political culture as the nation approaches its election.

Anthony Albanese has made significant comments regarding Donald Trump and the impact of US politics on Australia. The Prime Minister expressed that the division in the US has implications for Liberal leader Peter Dutton.

Mr Trump has suggested he may discuss tariffs with Australia after the upcoming election. Albanese cautioned Australians against adopting US-style politics.

He stated that voters in Australia are not receptive to Trump’s influence or Dutton’s alignment with him.

President Trump acknowledged Australia’s outreach on trade matters.

Open to talk

When asked if he would discuss trade with Mr Albanese, Trump confirmed he would be open to conversation. Albanese reiterated the importance of maintaining Australia’s unique political culture.

He pointed out that Australians perceive the US as a polarized society, which is unhealthy.

In an exclusive interview, Albanese emphasized that Australians do not desire such division in their political landscape. His remarks highlight the contrast between Australian and American political dynamics.

This ongoing dialogue between leaders reflects concerns about the potential importation of divisive politics into Australia.

Albanese’s comments serve as a reminder of the risks associated with political extremism. As Australia heads into its election, the Prime Minister’s warnings could resonate with voters prioritising unity and stability.

News

Democrats rally against Trump amid voter dissatisfaction

Democrats intensify resistance to Trump amid voter dissatisfaction with leadership, planning speeches and protests to showcase opposition efforts.

Published

10 hours ago

April 30, 2025

Ahron Young

Democrats intensify resistance to Trump amid voter dissatisfaction with leadership, planning speeches and protests to showcase opposition efforts.

In Short

Congressional Democrats are under pressure to oppose President Trump as he completes his first 100 days in office, feeling their base is dissatisfied with their efforts.

They are organising events and speeches to highlight their resistance while acknowledging challenges due to their minority status.

Congressional Democrats face significant challenges as President Donald Trump marks his first 100 days in office.

The party is increasingly anxious that base voters feel they are not doing enough to oppose the administration.

In response, Democrats have organised a series of speeches, sit-ins, and events aimed at showing they are actively resisting Trump’s controversial policies.

Senate Democrats plan to keep the floor open late into the evening to deliver speeches critical of what Minority Leader Chuck Schumer describes as “100 days of hell.”

Trump’s agenda

They will gather with House Democrats on the Senate steps to voice their opposition to Trump’s agenda.

Schumer expressed their commitment, stating that they will consistently highlight the differences between Democratic unity and Republican disarray.

He stressed that resistance will come from Democrats, the courts, and the American public as long as Trump pursues what he calls a dangerous path.

Democrats face mounting pressure from voters dissatisfied with their efforts to oppose the president.

Recent polling indicates a significant disapproval of congressional leadership within the Democratic party, with 61% of voters expressing dissatisfaction with Schumer and House Democratic Leader Hakeem Jeffries.

With Republicans controlling the White House and Congress, Democrats find it challenging to block administration initiatives.

Senate Minority Whip Dick Durbin acknowledged the frustration among their supporters but emphasised their commitment to doing their best given their minority status.