Sean McNulty, a streaming expert, uncovers the explosive growth of free ad-supported TV services like Tubi amid soaring subscription costs. Elaine Low, an industry analyst, discusses how these platforms are reshaping Hollywood's landscape and affecting traditional studios. David Lidsky adds insights on the ramifications of these trends in the ongoing streaming wars. They also humorously explore the impact of recent layoffs in major studios and touch upon the evolving role of AI in the industry.
The rise of free ad-supported streaming services like Tubi signals a shift in viewer preferences amidst rising subscription costs and complex models.
Significant layoffs at Paramount and other companies reveal the challenging financial landscape and ongoing anxiety among media professionals regarding job security.
Deep dives
Mid-August Industry Trends
The podcast highlights the typical mid-August slowdown in the entertainment industry, noting that this time of year generally brings a quiet period for reporting calls and business activities. This year, the hosts reflect on the relative calm compared to previous years, where the industry's dynamic was affected by strikes and recession fears. Although there is a sense of uncertainty among media professionals, the guests express relief that this summer’s environment feels less burdened by negative pressures. The discussion underscores the contrast to the dramatic events of the past two years, hinting at the fragile state of confidence in the industry.
Paramount's Layoffs and Industry Responses
The episode discusses the significant layoffs at Paramount, affecting about 15% of its US workforce, as part of a cost-saving measure amid ongoing financial struggles in the media sector. The hosts express concern over the method of these layoffs, criticizing the piecemeal approach that can negatively impact employee morale and create an ongoing atmosphere of anxiety. This trend is not unique to Paramount, as similar measures have been taken by other companies in the cable industry. The broader implications of these job cuts indicate a challenging time for media employees, who are grappling with job security and a dwindling number of opportunities in traditional broadcasting.
Evolving Business Models in Media
A critical theme explored in the episode is the shifting landscape of media business models, particularly regarding streaming services and their profitability. The conversation reveals that successful companies like Sony are finding ways to maintain profitability through simple, hit-driven strategies, contrasting with the struggles of others reliant on complex streaming models. There’s an ongoing debate about how companies can balance the demand for entertainment with sustainable business practices. The hosts emphasize that while the appetite for quality content remains strong, the financial foundations of the industry require urgent reevaluation.
The Rise of Free Ad-Supported Streaming
The podcast also covers the growing popularity of free ad-supported streaming services like Tubi, highlighting their user growth and the appeal of easy access to content without subscription fees. Hosts discuss how this model is reminiscent of traditional cable but uniquely positioned to attract viewers who are fatigued by the complexity of subscription services. Despite the impressive user numbers, there are concerns about the underlying business viability and profitability of these platforms. The discussion culminates in the recognition that while audience demand exists, the conventional revenue streams are under threat, leaving the future of ad-supported services uncertain.
People like free. And in an age where CEOs are raising streaming prices faster than you can say gallon of milk, FAST services like Tubi and Pluto TV have doubled in size in the past couple years — ads and all. Sean McNulty, Elaine Low and David Lidsky break down the success of the new FAST players and what they could mean for the next chapter of the Streaming Wars. Plus: Paramount shutters a TV studio as layoffs begin; Sony’s steady “arms dealer” strategy; and a box office trivia throwback.