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Streaming Services: Power Rankings Summer 2023, and What's Up With Paramount+
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<blockquote data-quote="Snarf Zagyg" data-source="post: 9072555" data-attributes="member: 7023840"><p>So an update vis-a-vis the SAG-AFTRA strike.</p><p></p><p>Yesterday, while not all the numbers were good from Netflix, they raised their outlook for free cash flow this year to $5 billion (from $3.5 billion). This was due to the writers' and actors' strike.</p><p></p><p>A dynamic that I think that is underappreciated in all of what is on right now with the strike is this-</p><p></p><p>In addition to AI (and who know what is going on with that), a primary driver of the strike is the switch to the so-called Netflix model. There's a lot that goes into this - everything from shorter seasons and fewer episodes (requiring more downtime between gigs) to opacity of the data to the inability of creators of content to share in the success of properties. And while it isn't exclusively a Netflix issue, it's most certainly a model that was introduced by Netflix and benefits them immensely. </p><p></p><p>Which means that we have a bizarre dynamic playing out. Negotiations are between the guilds (writers and actors) and the AMPTP, which represents the major studios (motion picture and TV producers), including Netflix. The guilds want something that benefits the producers, but is of incredible value to Netflix.</p><p></p><p>Meanwhile, Netflix is in competition in the streaming space with the other companies. Putting aside Apple and Amazon for now, some of their primary competitors include Disney+, Max, Paramount+, and Peacock. </p><p></p><p>All of those streamers have struggled in different ways. And all of them are facing a future of the pipeline of content being massively curtailed due to the strike (they stockpiled some, but that only lasts so long). Netflix, meanwhile, invested heavily in international and alternative forms of content that will not be affected by the strike. Moreover, some of the other streamers (such as Disney, Max, and Paramount+) face the additional problem that their movie studios will be also be facing concomitant challenges. </p><p></p><p>In short, while Netflix might not be claiming to welcome this strike, they certainly would benefit from a lengthy strike.</p></blockquote><p></p>
[QUOTE="Snarf Zagyg, post: 9072555, member: 7023840"] So an update vis-a-vis the SAG-AFTRA strike. Yesterday, while not all the numbers were good from Netflix, they raised their outlook for free cash flow this year to $5 billion (from $3.5 billion). This was due to the writers' and actors' strike. A dynamic that I think that is underappreciated in all of what is on right now with the strike is this- In addition to AI (and who know what is going on with that), a primary driver of the strike is the switch to the so-called Netflix model. There's a lot that goes into this - everything from shorter seasons and fewer episodes (requiring more downtime between gigs) to opacity of the data to the inability of creators of content to share in the success of properties. And while it isn't exclusively a Netflix issue, it's most certainly a model that was introduced by Netflix and benefits them immensely. Which means that we have a bizarre dynamic playing out. Negotiations are between the guilds (writers and actors) and the AMPTP, which represents the major studios (motion picture and TV producers), including Netflix. The guilds want something that benefits the producers, but is of incredible value to Netflix. Meanwhile, Netflix is in competition in the streaming space with the other companies. Putting aside Apple and Amazon for now, some of their primary competitors include Disney+, Max, Paramount+, and Peacock. All of those streamers have struggled in different ways. And all of them are facing a future of the pipeline of content being massively curtailed due to the strike (they stockpiled some, but that only lasts so long). Netflix, meanwhile, invested heavily in international and alternative forms of content that will not be affected by the strike. Moreover, some of the other streamers (such as Disney, Max, and Paramount+) face the additional problem that their movie studios will be also be facing concomitant challenges. In short, while Netflix might not be claiming to welcome this strike, they certainly would benefit from a lengthy strike. [/QUOTE]
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