From CNBC:

The streaming wars have left legacy media companies grappling with financial wounds and decreasing investor confidence. To compete with Netflix, companies like Disney, Paramount, and others have slashed budgets and adjusted content strategy. Despite their efforts, Wall Street remains unsatisfied, with Netflix outperforming others at 65% growth in shares.

One solution could be to bundle subscription streaming services similarly to traditional cable TV. This could help ease the consumer experience and create sustained streaming profitability. However, hammering out the details, such as getting all media companies to agree on what a bundled service would look like, remains a challenge.

Mergers and acquisitions could be another path to a bigger bundle, but analysts are not sure a major deal will happen in 2024. Disney holds a high debt load from its 2019 acquisition of 20th Century Fox, and Warner Bros. Discovery and Paramount have significant debt following their mergers in 2022. Regulatory issues and balance sheets built on unstable linear cable network economics further complicate this solution.

Wall Street is also seeking resolution for struggling theatrical distribution, despite a box office surge. Revenue figures show “Barbie”, “The Super Mario Bros. Movie”, and “Oppenheimer” snared billions at the global box office, emphasizing the appeal of live-action events. Furthermore, investors foresee heavy investments in premium screens, such as IMAX and Dolby, as a return to pre-pandemic profitability is the main focus.

The theatrical industry is contending with a packed 2024 calendar of sequels, prequels, and spinoffs due to film production stalls during the pandemic. Furthermore, the industry is sorting out new theatrical windowing strategies as films navigate between theater, home video, and streaming. Despite the challenges, the message is clear – audiences still want to watch movies and cinema chains will have to be patient while Hollywood figures out the next move.



Read more: What Wall Street wants to see from Hollywood in 2024