According to the Italian daily Il Corriere della Sera, one of the main factors weighing on the U.S. entertainment industry is the decline of traditional television.
The problem is that revenue from pay-TV — for decades one of the industry’s most profitable segments — is increasingly being replaced by streaming revenue, which generates lower margins.
In the U.S., pay-TV subscriptions have fallen by 36 million over the past decade, bringing the total down to 62 million. Meanwhile, streaming growth is slowing, and competition for viewers’ attention is intensifying. Netflix, Sony Pictures, and the companies operating Paramount and Warner Bros. Discovery (now under Skydance’s ownership) have all reduced their workforces. Major studios are no longer competing for audiences solely through cinemas and streaming platforms; they must also contend with Amazon and Apple, as well as YouTube and TikTok.
U.S. entertainment companies are also investing in new technologies, particularly artificial intelligence, to transform film and television production. In March, Netflix announced its acquisition of InterPositive — a company founded by actor Ben Affleck that develops production and post-production tools — for approximately $587 million. In late October, Oracle unveiled Media Fabric, a platform designed to use AI to create storyboards and visual effects.
Leave A Comment