Right now, all the big companies in the world of streaming are in low hours, with a historic drop in profits, after years of enormous prosperity. Specifically, Bloomberg publishes that the profits of the big streaming companies have fallen by 90% since the last decade.
And it has been revealed that the most powerful program directors, studio heads, agents and operators in Hollywood feel that “this is the worst time to do something in the history of the medium“or that it’s a disaster.
As described by Vulture magazine, the streaming sector grabbed a model that worked, “a extraordinarily successful economic model and destroyed it in favor of a model that may or may not work, but almost certainly it will not work as well as the old model”, they have affirmed from the Hollywood industry. The figures speak for themselves:
If in 2013 the big ones had profits of around 23.4 billion dollars, right now the combined profit is only 2.6 billion dollars.
From VHS to STREAMING everywhere
Profitable businesses, but much less
Anyway, between Netflix, Disney and Paramount do not reach 10,000 million dollars in profits, but they are still profitable businesses, just below what they were. Warner Bros. Discovery has had multimillion-dollar losses.
For its part, Amazon He has made a very high expense with Citadel (the second most expensive series in the series) and it has not even been among the 10 most viewed.
According to Bloomberg, Amazon CEO Andy Jassy is taking a close look at how much the company’s Hollywood studio spends on original TV shows. In the last weeks, has asked executives for detailed budget analyzes of some of its largest programs.
Amazon, its fall and criticism of Hollywood
Last year, Amazon spent $7 billion on original showslicensed programs and sports, compared to 5,000 million the previous year.
And, according to Vulture, Hollywood execs criticize how “everything became big tech: the Amazon model of ‘we don’t really have to make money; we just have to show growth to shareholders‘” he ended with “let’s take one of the most money making inventions in the history of the modern world – the cable television system – let’s kill it and reinvent ourselves as technology companies, where we throw billions looking for of a return that remains completely speculative in the long term”.
The director Steven Soderbergh, winner of the Oscar for ‘Traffic’, has come to compare the streaming business with the cryptocurrency bubble: “it is absolutely conceivable that the streaming subscription model is the crypto of the business of entertainment”.
Via| xataka
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Image | Jonas Leupe on Unsplash