Looking back, and ahead, with Bloomberg’s Lucas Shaw
Dec 18, 2024
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Lucas Shaw, Bloomberg's astute media reporter, shares his insights on the year’s shifts in the media landscape. He discusses the impact of a potential TikTok ban and how platforms like YouTube might adapt. The conversation dives into Saudi Arabia's burgeoning film industry and the ethical complexities Hollywood faces there. Shaw also tackles the challenges legacy media companies encounter while evolving their strategies, as well as the uncertain future of ESPN's subscription model amid changing consumer habits.
Media companies are increasingly seeking funding from the Middle East, particularly Saudi Arabia and Qatar, as traditional financing avenues dry up.
The potential ban of TikTok in the U.S. could lead to significant shifts in marketing strategies for the music and film industries.
Deep dives
Media Expansion in the Middle East
Media companies are increasingly exploring opportunities in the Middle East, particularly in Saudi Arabia, Qatar, and the UAE, as these regions offer new sources of funding amid diminishing investment in Western markets. The Red Sea Film Festival stands as a key event where filmmakers and producers gather to tap into these financial resources, promoting regional filmmakers and attracting attention from Hollywood. While the festival aims to elevate local talent and establish a film hub in Saudi Arabia, it is largely seen as a bid to entice international filmmakers to work with local investments. The presence of high-profile celebrities at such events further underscores the financial motivations behind these relationships, highlighting a shift in how the industry views potential funding sources.
The Evolving Landscape of Film Financing
As traditional funding avenues for independent films tighten, many creators are turning to Middle Eastern investments as a viable solution. The podcast emphasizes the increasing challenges independent filmmakers face in securing financing, with some describing the current climate as one of the toughest periods since the 2007-2008 recession. This shift has prompted filmmakers to consider international markets, particularly those in the Middle East, where investors are willing to finance a variety of projects. Despite concerns over the sociopolitical implications of accepting funding from regions with contentious human rights records, the allure of financial support often outweighs these considerations for many in the industry.
Media Consolidation and Market Dynamics
The discussion also touches upon the anticipated consolidation trends within the media landscape, indicating that while there has been extensive consolidation over the past decade, a significant frenzy of new mergers may not be on the horizon. Industry insiders highlight that despite existing pressures, substantial deals can still emerge, driven by the declining value of cable assets ripe for aggregation. The complexity of navigating antitrust concerns under different administrations adds additional layers of caution for companies considering mergers. Despite these challenges, major players are likely to look for strategic acquisitions to stabilize and grow amidst a contracting market.
Impact of TikTok's Potential Demise
There's considerable concern surrounding the potential impact on the media business if TikTok were to be banned in the U.S., as it has become a dominant platform for content consumption among younger audiences. The loss of TikTok would likely benefit competing platforms like YouTube and Instagram, which have developed similar short-form video features to retain users. Additionally, the music and film industries would be forced to recalibrate their marketing strategies as they lose a crucial avenue for reaching younger demographics. This shift would require creative new approaches to audience engagement, as those previously relying on TikTok's virality for promotion would need to adapt quickly to remain relevant.
I don’t love a lot of year-end #content . But I do love talking to Bloomberg’s Lucas Shaw every year, to help put the year in media in perspective, and to think about what might be coming in 2025. And that’s exactly what we did here. Enjoy it now, or over your break. We’ll see you again in January.
