The world’s largest traditional entertainment companies face a reckoning in 2024 after losing more than $5 billion in the past year from the streaming services they built to compete with Netflix.
Disney, Warner Bros Discovery, Comcast and Paramount—US entertainment conglomerates that have been growing ever larger for decades—are facing pressure to shrink or sell legacy businesses, scale back production and slash costs following billions in losses from their digital platforms.
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“TV advertising is falling far short, cord-cutting is continuing to accelerate, sports costs are going up and the movie business is not performing,” he said. “Everything is going wrong that can go wrong. The only thing [the companies] know how to do to survive is try to merge and cut costs.”
Just go back to selling the broadcast rights to Netflix. You no longer have to pay development costs, infrastructure costs, the staff to maintain it, or advertising. The IP owners still get sizeable revenue, massively reduced cost, and customers go back to having a simple, one-provider way of easily and legally streaming everything they want that is worth watching. It’s literally a win-win for everyone. Except it will never happen, because the IP owners want ALL the money; some money just isn’t good enough.
Do you think Netflix is a charity?