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The Netflix revolution and streaming media is, for now, one of the most successful profit-destroying interventions in modern business history
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Lucas Shaw
Profits at the biggest entertainment companies fell almost 90% over the last decade (from $23.4B to $2.6B). Revised numbers from the last newsletter (cc @DKThomp)
David Watson 🥑
When Craigslist, Google, Facebook etc ate newspapers lunch, they grabbed the profits and moved them from publishing to tech. Where did the film and TV profits go? Some went to online advertising but a lot of them were just incinerated to attract subscribers. Amazing stuff!
It’s like couch potatoes formed a union. “We have two demands: we’re sort of done with going to the movies, so shorten the windows and send more stuff to steaming and also we don’t want the vast majority of the entertainment industry to make a profit.” We did it, comrades!
Yes you can toss this story into the file labeled “Forget it Jake, it’s … the Internet”
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em steck is alive
Replying to @DKThomp
Couldn't you argue that a lot of the big consumer "disruptors" killed profits? e.g. Uber/Lyft, Amazon (with books, etc.)
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Ed Solomon
The studios ARE losing money, just as they say. My recent Men in Black profit statement proves that the film, though having generated over $595 million in revenue, has actually *cost* Sony over $598 million. SO close, too: off by just .02%/yr. *They* should be picketing *us.*…
Also the impact of gaming though
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Dylan Collins
Mergers only work if the eyeballs are with you. Profit margins at legacy media companies versus legacy games publishers over the last decade (by @Lucas_Shaw and @joosterizer whose newsletters you should be reading)
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Same with digital newspapers and news. As technology advances it becomes cheaper and that’s an issue when media companies keep having to constantly show growth given that there’s no less spending in a life cycle but also wages stayed stagnant but costs increased
Musicians and recording artists have been dealing with this for decades. History suggests the companies will find a way to make 💰 at the expense of rank-and-file actors, writers, and other entertainment professionals.