Community Chat

[They CallMe MRWILKES]

I received the solicitation material for the hostile Paramount bid and voted yes.

However, it appears unlikely that Paramount can be successful without the support of the Warner Board.

As of this morning,  Netflix has amended its offer to an all cash deal.  That's cleaner and smoother and will likely get Warner shareholders' support. 

[Spurt]

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@gardenman wrote:

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While I don't at all like the consolidation of our media (soon three of our four local news stations will be owned by the same company), often the alternative to mergers or takeovers is a failing company going out of business.

Then their assets are just grabbed up a fire sale prices anyway."

Yeah. If your company is thriving, there's no reason to let someone else take it over. Most of the mergers come when one company is in trouble and needs a lifeline. Sometimes, both companies are in trouble and need help, and think combining into one can help. 

The entertainment industry is in all kinds of chaos now. Younger viewers watch more TikTok, YouTube, X, Instagram, Twitch, etc. than conventional TV. (Some of us older viewers, too.) Since that's where the viewers are, that's where the advertisers are going. There's not a lot of "must-watch TV" these days. Live sports still draw an audience, but the cost to acquire rights to air live sports has gotten insane. These are challenging times in the entertainment industry. I'm not sure acquiring $70+ billion in new debt is the ideal path forward, but Netflix disagrees. We'll see if they're right.

TV exists to sell advertising. (So do magazines, newspapers, and more.) If the advertisers aren't paying you, you need other revenue streams. Subscriptions are one revenue stream, but people are getting tired of paying for subscriptions. And if you're losing advertising revenue, you have to up the subscription prices, which drives away more subscribers. 

The entertainment industry is in a death spiral, and I'm not sure anyone knows how to pull it out of the spiral before it crashes. Advertisers are moving more to social media. Subscribers are tiring of paying ever-increasing subscription fees. Revenue streams are disappearing. These next few years will be interesting to watch. 

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@gardenman 

Hollywood aint what it used to be in so many aspects!!!

Whats happening also these actors aren't getting paid as much as they used to .....Theatrical releases give them upfront compensation PLUS residuals. However, starring in a streaming production such as Netflix, there are no residuals paid. While A-listers get paid well upfront, supporting actors, guest stars, and newcomers often face much lower overall pay in streaming compared to traditional theatre or television.

• After the 2023 SAG-AFTRA strike, new contracts aim to increase streaming residuals, but they still differ significantly from the old, highly lucrative theatrical model.
• NEW MODEL Netflix is testing a new structure where they ask top talent to take lower upfront fees (20-30% reduction) in exchange for higher bonuses if the show is a hit. 

People complain about athletes getting paid high salaries, but at least they can say they are putting their bodies on the line now and impacting their health long after they retire from sports!!! Unless actors are doing their own stunts, acting does not come with the same risks....JMHO I've always felt actors were way overpaid in the first place....