Top media executives, including Brian Roberts, John Malone, and Barry Diller, are grappling with the future of the streaming industry. These industry moguls, who have thrived during the golden era of television, are now facing the challenges posed by the rise of streaming services. The traditional media companies they represent are struggling with mounting losses due to their streaming ventures. For instance, Paramount lost $1.6 billion, Comcast lost $2.7 billion on its Peacock streaming service, and Disney lost about $2.6 billion on its services, which include Disney+, Hulu, and ESPN+.
On the other hand, disrupters like Netflix and Amazon are enjoying near-record high shares. Netflix is on pace to generate $1 billion in advertising revenue this year. This success suggests that streaming ads are here to stay. However, the industry is still in a state of flux, with legacy media companies’ stocks a fraction of their former highs.
The executives agree that the current money-losing status quo in the streaming business is unsustainable. However, what will replace it remains uncertain. The industry is in a chaotic state, with companies like Paramount failing to sell itself after months of negotiations, Warner Bros. Discovery frantically paying down its $43 billion in debt, and Disney laying off thousands of workers and pushing out its CEO as streaming losses mounted.
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