Streaming’s outlook: The potential for a strike comes at a difficult time for streaming providers, that are feeling stress from traders to reverse shrinking revenues and subscriptions by chopping spending.
- The streaming market’s saturation has led to slower progress, which in flip has affected inventory values, forcing firms to hunt costly mergers, pursue new income sources, scale back unique content material spending, and extra.
- A strike or new contract that leads to considerably larger author pay might make it tougher for streaming providers to pursue long-term progress targets.
- Which means issues like Netflix’s try to construct its personal advert tech system, Warner Bros. Discovery’s debt funds, potential acquisitions, and the broader trade’s push into markets like India can be slowed each by higher expenditures and an incapacity to provide new content material with out writers.
Our take: 2021’s canceled stage worker strike ought to give WGA members hope {that a} cheap contract will be reached between streamers and writers, however platforms petrified of shrinking revenues might play hardball, which might lead to battle.
- A strike poses nearly no threat of killing multibillion-dollar streaming behemoths, however a loud, public battle and better spending on a brand new contract would solely additional disappoint traders.
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