![]() While cinema chains wait for Hollywood production to ramp back up, Wall Street foresees heavy investments in premium screens - such as IMAX, Dolby, Screen X and 4DX - that offer elevated experiences at a higher ticket price. "While the slate for 2025 has benefited from the slate delays in 2024, we do not believe investors are willing to step up to the plate right now and may wait until later in the year when visibility into 2025 improves." "As we have seen with the stock prices of exhibitors, the reduced film slate outlook for 2024 has on investor sentiment heading into this year," said Eric Wold, senior analyst at B. As it stands, the 2024 calendar is packed with sequels, prequels and spinoffs - the kind of content that failed to capture audiences in 2023. All of that resulted in fewer releases and smaller box-office returns. Cinema!"įilm production stalled during the pandemic and again during dual Hollywood labor strikes last year. ![]() "The message we sent to Hollywood in 2023 is we don't need superheroes or Star Wars to go back to the theater," Josh Brown, CEO at Ritholtz Wealth Management, wrote in a LinkedIn post last month. Movie" and "Oppenheimer" snared $1.3 billion and $950 million, respectively. Yet, Wall Street still sees value in this distribution avenue.Īfter all, Warner Bros.' "Barbie" tallied more than $1.4 billion at the global box office, while Universal's "The Super Mario Bros. Legacy media companies are also grappling with a beleaguered theatrical industry, which has yet to recover from the pandemic. "I don't think the regulatory environments would be supportive of consolidation," said Creutz. were two of the top three domestic movie studios by revenue in 2023, according to data from Comscore. to position itself as a viable asset for Comcast's NBCUniversal. Discovery CEO David Zaslav and Paramount CEO Bob Bakish met in late December for a preliminary discussion, but some speculate the leaked talks were a way for Warner Bros. She controls Paramount through her company National Amusements. Controlling shareholder Shari Redstone is reportedly eager to make a deal. "The challenge to overcome is what do you do about your linear cable networks? Just given those headwinds, the combination of debt, plus instability of a core business that was good and sticky and stable - that's the biggest conundrum." "What I've seen as a fundamental problem is that have balance sheets built on linear cable network economics that are no longer stable," Nathanson said. It was clear how to make money from linear TV, but so far it's unclear how investors can cash in on streaming beyond investing in Netflix. Wall Street wants a solution, or, at the very least, a company to set the stage for a potential solution. Similarly, prospects for mergers and acquisitions are uncertain, as several companies hold massive debt loads already and regulators are wary of limiting competition in the industry. But, getting all these rivals to collaborate is almost as difficult as navigating increasing regulatory scrutiny, Creutz said. The answer might seem simple: a cable-style bundle, only with streaming. "We're looking for someone to put forward a credible vision of how this industry is going to have a sustainable business model," said Doug Creutz, managing director and senior research analyst at Cowen. Netflix, on the other hand, overperformed significantly, with shares up 65%. Discovery and Comcast outperformed the S&P 500 in 2023, though just barely. Several streamers have added services supported by ad revenue, cracked down on password-sharing and raised prices. Personal Loans for 670 Credit Score or LowerĬompanies have since slashed their budgets and adjusted their strategy for licensing homegrown movies and shows. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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