[ad_1]
Top 30 Companies Dow Jones Media Giants Index Already losing about $540 billion in market value this year, companies like Warner Bros. Discovery have been hurt by the bursting bubble of the streaming revolution.
Coupled with slowing advertising and conservative consumer behavior, the impending financial recession has led to historic declines in stock prices, world news times report.
The index fell 40% in 2022, shrinking its total market capitalization from $1.35 trillion to $808 billion.
From movie studios to cable networks and music streaming, entertainment conglomerates have been among the hardest hit by the recession. Many companies, including Paramount Global and Netflix, have opted for mass layoffs as a result of mergers and acquisitions, as well as various cost-cutting efforts to offset losses from declining subscribers or declining advertising.
Walt Disney stock, for example, fell about 45%, its biggest annual drop since 1974, possibly due in part to a bit mediocre The box office for James Cameron’s “Avatar: Way of Water.” Meanwhile, shares of Paramount Worldwide are down about 42% and Netflix is ​​down 52%. Hardest hit, however, was Warner Bros. Discovery, whose shares fell 63% after Discovery merged with AT&T’s WarnerMedia earlier this year for $43 billion. Since then, under CEO David Zaslav, the company has made harsh and often unpopular layoffs of programming and executive staff, hoping to save $3.5 billion.
Other companies affected included Spotify (down 69%) and Roku (down 81%), as well as traditional broadcasters like Charter Communications (down 53%) and Comcast (down 31%).
While streaming platforms got a boost during the lockdown in 2020, with stocks seeing notable gains, that era of growth has begun to slide as big spending catches up with executives and viewers’ own subscription cycles.
Additionally, some of these platforms — such as Paramount — have had to incur significant losses from the decline of linear TV, which means they will have to offset those declines through other means, such as price increases or ad-supported tiers.
Also read:
Elon Musk will resign as Twitter CEO ‘once I find someone stupid enough to take the job’
[ad_2]
Source link