Episode Details

It has been an unsettling summer for the US movie and broadcasting businesses, with a strike by actors and writers stretching into its third month, a contractual dispute between Disney and Charter leading to a yanking of Disney channels (including ESPN) from Charter cable subscribers and the meltdown in Disney stock prices. In this session, I argue that these are symptoms of a longer term disruption of the movie and broadcasting business, as streaming has changed the way content is made, distributed and watched. After looking at how streaming has altered the volume, cost and type of content made, I look at its effect on the operating metrics and pricing of entertainment companies. I look at three scenarios for how this disruption will continue to play out - complete disruption and devastation, where the movie & broadcasting business mirror the collapse of the music business after Spotify's emergence, at one extreme, and adaptation and co-option, where the traditional movie makers bring their historical strengths to outflank the disruptions, at the other, and an intermediate scenario, where the future of entertainment belongs to the adaptable firms.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/Entertainment2023.pdf
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