Hollywood Lost Over $500 Billion in Market Value in 2022
Hollywood studios lost $500 billion in market values in 2022. Disney alone suffered $120 billion losses.
The American movie industry once dominated the world is in trouble.
Watching wacky politics and artistic interference from foreign governments like communist China has had an impact on creativity, viewership, and finances.
Last month, the Dow Jones Media Titans index, which tracks the performance of the world’s top 30 media companies, showed a 40 percent loss in 2022, with its total market value tumbling from $1.35 trillion to $808 billion, the Financial Times reported.
Entertainment lost more than other sectors last year, like banking, which experienced a 14.5 per cent drop in revenue, and telecommunications which suffered a 11.2 per cent decline in revenue.
The market value of major studios and streaming services, cable providers and broadcasters combined lost $542 billion in 2022.
Economic Uncertainty Hits Entertainment Subscription Services
Many investors have pulled out of the once booming streaming service market, as increasing competition and rising costs, combined with inflation taking a toll on consumer spending, have led to a slowdown in advertising and increasing subscriber cancellations.
High inflation and economic uncertainty have taken a toll on American household budgets, with the price of essential items such as food and energy increasing.
In worsening economic times, consumers have cut back on spending on non-essentials such as movies, streaming and cable subscriptions, music concerts and album purchases.
Streaming companies saw a rise in subscribers as lockdown restrictions helped boost audiences. Shares in the sector also witnessed a two-year boom.
But Netflix saw an unprecedented two consecutive quarters of subscriber losses this year, which led the company to slash its workforce, with its stock falling down 52 percent by December, reported the Financial Times.
Executives at Netflix over expanded and splurged tens of billions of dollars on streaming content projects while living costs skyrocketed and alternative viewing options began to challenge its predominance.
Legacy Movie, TV Studios Losses
In 2022, legacy entertainment companies suffered the most severe losses.
Paramount Global’s stock value dropped 42 percent while Warner Brothers Discovery saw its shares drop 62 percent.
Warner Brothers Discovery is in the process of integrating Discovery and AT&T’s WarnerMedia into a single conglomerate at one of the worse times in the industry’s history, as it reportedly faces as much as $5.3 billion in restructuring and other costs related to the massive merger.
Meanwhile, the Walt Disney Company fared quite badly across the board, with its shares of the once mighty brand down 45 percent last year, for its worse stock performance since 1974.
According to investors, the entertainment giant faces weak numbers in the future. This led to the firing of Bob Chapek, CEO, and the return of Bob Iger, its former CEO.
Walt Disney shares are headed for their worst annual drop since at least 1974. They have fallen by 45 percent. The shares have come under more pressure in recent days as takings from Disney’s eagerly anticipated “Avatar” The sequel did not meet expectations in its debut weekend.
Comcast, which is the parent company of NBC, MSNBC and Universal, saw its shares drop 31 percent while Charter Communications fell 53 percent due to customers cutting their cable content.
Increasingly “woke” content is also affecting many viewers’ willingness to watch TV.
The Oscars broadcast on ABC saw 15 million viewers in 2022. This is a decrease from the 46.33 million who tuned in in 2014. according to viewer data.
This was a modest increase from the 10 million viewers who watched in the year prior.
Films like “Top Gun: Maverick”, grossed $718 million at the U.S. box office alone, earning $770 million worldwide, making it the most successful release of the year.
The majority of American audiences still enjoy heartwarming and patriotic films.
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