The streaming media business model has cut off the long tail of content monetization.
Why it matters: The future of media and entertainment is inextricably linked to streaming, raising existential questions for creators and strengthening the link between value and artistic choice.
The Big Picture: Making money by entertaining people on screen is becoming increasingly difficult with the explosion of streaming services.
- The sheer number of viewing options offered by streaming providers has reduced the quality and dulled the viewer experience, making it impossible for consumers to distinguish one platform from another and to remember a movie or show that they were most excited about.
Threat level: "We have too many options that nothing works or is useful," Janice Ming, CEO of Anchor Media, told Axios.
- "Hollywood's hallmark has always been to create the highest quality content on Earth … and when you start filling up the fire hose, you lose some of that," says Min.
- "When people make 100 films a year, they can't put in the same effort."
One last thing: Disney announced yesterday that it plans to cut costs by $5.5 billion, $3 billion of which will be spent on non-sports content.
- The cuts come as the media giant focuses on making its streaming business more profitable.
What they say: “In the streaming business alone, there are seven or eight platforms dedicated to entertainment. "It's not easy to compete in this business," Disney CEO Bob Iger told CNBC this morning.
- Disney made the comment by explaining why it wanted to "classify" entertainment that would appeal to a wide audience.
- “Now that we're more focused on improving profitability, I think we basically have to be more selective about what we say yes to.
Iger said Disney wanted to build on its most successful franchises, including Avatar, Star Wars and the Marvel movies, which have generated high profits but "high costs."
The big picture : Disney isn't alone: David Zaslav, the CEO of Warner Bros. Discovery, has been looking for content projects for all of the brand's brands, including CNN and HBO Max.
- At Paramount Global, CEO Bob Bakish has overseen downsizing and restructuring as the company expands its streaming services.
Thought bubble: No matter how many new opportunities and how good they are, as long as there are only 24 hours in a day, these companies will always face some attention.