The decision of Sony to remain a content producer and not a streamer looks a wise one.
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Decade-long spending boom on original TV content expected to slow
Lossmaking streaming platforms and traditional channels face pivotal year in 2023, say analysts
Analysts predict 2023 will be a pivotal year for the video media industry, which has been hammered by the deteriorating economy and an expensive transition from traditional television to streaming, where most platform’s soaring content costs have yet to be matched by revenue gains...
Meanwhile, big legacy media companies such as Disney, Paramount and Warner Bros Discovery are facing another year of heavy streaming losses, with Morgan Stanley estimating content costs per subscriber will be almost double that of Netflix while revenue per member will be lower.
Excluding Netflix, Morgan Stanley estimates streaming services suffered operating losses of around $10bn in 2022. Losses are expected to peak for some services in what the analysts called a “tipping point year” where it will be clear costs are reaching “unsustainable levels”.
“Streamers are raising prices and cutting costs,” the Morgan Stanley analysts wrote in a note to clients. “If these moves do not deliver meaningful streaming profits, we see two options (not mutually exclusive): give up and/or consolidate.”
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https://www.ft.com/content/d9a7cded-...1-44bf6516d476
---------- Post added at 22:26 ---------- Previous post was at 22:20 ----------
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Originally Posted by OLD BOY
I don’t really think my comment needs any explanation, Hugh. Of course the channels could appear as now but on IPTV. If they wanted to, they could. But I don’t think they would want to do that if on demand was the preference of most viewers, with audience figures for conventional viewing declining. Why would they?
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Because it brings in additional viewers at a low cost. Declining audiences doesn't mean small audiences. And some content is better suited to linear channels.