It’s a complicated time to be a media company. Actors and screenwriters from coast to coast have brought the multibillion industry to a shuttering halt as they fight for better streaming residuals, higher pay and protections against metastasizing artificial intelligence use cases. The backdrop has created an unfamiliar setup for the coveted fall TV lineup — historically one of the busiest stretches of the year, and a time for studios to showcase their latest potential hits. At the same time, legacy media companies face off against another well-known demon: cord-cutting. While no new phenomenon to the tumultuous industry, the difficult spending environment is leading more and more consumers to reassess their expenses and cut subscriptions to curb costs. Newer entrants into the streaming sector still face a cumbersome road to capturing consumer attention — and dollars — as they compete against veterans like Netflix and technology behemoths such as Amazon and Apple , with growing cash reserves and alternative businesses to offset losses. “The generational secular pressure on the pay TV bundle gets more intense every day,” said Rosenblatt analyst Barton Crockett. “It’s a drumbeat that’s getting louder and louder, and what we’re seeing is some of the springs popping off, and things starting to come apart. That doesn’t mean that things unravel immediately, but it gets tougher and tougher every day.” It’s a difficult time to navigate the industry, and with no clear-cut resolution in sight, companies with larger content libraries and broader international operations look better situated to weather the near-term volatility. Surviving the near-term Since pioneering the streaming model, Netflix has stood out as a dominant competitor to topple and the main threat new entrants face in the fight to capture consumer attention. It’s also experienced a stellar 2023 as investors rotate back into the beaten-down technology sector. Shares have jumped 34% year to date, with the average price target suggesting it has another 17.7% gain in store. NFLX YTD mountain Netflix shares since the start of 2023 The longest player in the space, Netflix’s built a vast library, and made itself synonymous with the word streaming. Along with its own content slate, Netflix’s also acquired even more programming over the years from distributors to keep audiences entertained, and more importantly – paying. This years-long head start leaves many competitors playing a game of catch up…
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