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Replies to post #104997 on Mike The Pike Productions Inc (fka MIKP)
07/18/23 9:02 AM
Entertainment stocks struggled on Friday as actors hit the streets of New York and Los Angeles for SAG-AFTRA’s first day of picketing. Investors sold down the shares as Wall Street struggled to assess the impact of the widening strike on the companies’ revenue and costs.
Shares of Warner Bros. Discovery ended Friday’s trading session down more than 5%[/b], while Paramount Global tumbled 4.6%, Disney slipped 2%, Netflix fell 1.8% and Comcast dipped 1.4%. ...
Actors went on strike after the union was unable to reach a deal in contract negotiations with the Alliance of Motion Picture and Television Producers on Wednesday. Meanwhile, the Writers Guild of America has been on strike since May 2.
Also Read:
‘A Once-in-a-Generation Reckoning': How the Actors’ Strike Changes the Game
The first double strike in more than sixty years comes as media companies have been [color=red]feeling the heat from Wall Street to become profitable[/color] in streaming, a feat only Netflix has achieved so far. Additionally, the legacy media giants are contending with a softer advertising market and an industrywide decline in linear television.
“With The Screen Actors Guild joining the Writers Guild of America on strike, film and TV production has now ground to a halt,” Third Bridge senior analyst Jamie Lumley said. “We’ve been hearing that most streaming companies won’t feel the pain from strikes until 2024 given the pipeline of content that has already been locked in. However, streamers could be in trouble as soon as the velocity of content slows.”
Though some streamers have pared back on their libraries in an effort to reduce costs, the industry consensus is that new movies, shows and seasons are key to retaining existing subscribers and attracting new ones.
LightShed Partners expects a SAG-AFTRA strike to last for at least 6-8 weeks, analyst Rich Greenfield wrote in a blog post Wednesday. While Greenfield noted that the strikes help studios’ free cash flow with money not being spent on shuttered productions, he warned that the longer the strike goes on, the more TV and film release schedules will feel the pinch.
“Netflix [is] probably least affected because of how far ahead they produce,” Greenfield said. “But what worries us most in the short-term is that talent will no longer be able to do promotional activities for content being released this summer, especially high profile movies [and] TV series that benefit from talent [and] stars being visible.”
He added that it’s “just another negative for the linear TV ad market, as brands will be even less willing to commit dollars for the 2023-2024 TV season.”
Last year’s linear upfronts generated $20 billion in commitments, up 6% year over year, driven by “large volume sales as networks looked to lock in total dollar increases in a soft pricing environment,” Macquarie senior media tech analyst Tim Nollen wrote in a note to clients on Thursday.
“The subsequent scatter market was then weak, setting up a rough negotiating period for sellers,” he added. “Now with show production halted, how do buyers even know what they are committing to?”
07/18/23 12:03 PM
what's your target buy-in price this round, just1?
AI
