Hollywood and the film and television industry as a whole goes through ups and downs on spending over the course of business cycles. Following a free-wheeling investment spree in content, the streamers and major studios have been racing for market share, subscribers, retention, and volume.
As we've seen happen many times, these periods are often followed by a retrenchment. Cost consciousness returns and the reigns are drawn in - a bit.
Netflix will still spend $17bn on content in 2024, up from a strike-induced lower $13bn number. While all the production and distribution companies, and streamers need to ramp volume, they will be watching the costs more closely going forward.
While much of this is strike induced, the trend was afoot as Wall Street slapped Netflix for its first subscriber drop, and it induced a re-examination of the streaming model, profitability, and accountability to investors. The bottom line is, as always for independent producers, the film budget matters, the cost must be reasonable, and in alignment with the market. The big kids are facing this factor as well.
Read the article @Variety on the changes taking place in the industry:
https://variety.com/2023/biz/focus/streamers-dealmakers-shift-strategies...
Happy New Year and stay focused!
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Interesting. Thanks, Langley.
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Hi Eric - here's a link to a Stage 323 webinar on the subject that I recommend. Sara Elizabeth has raised millions of dollars for independent films and shares valuable information here: https://www.st...
Expand commentHi Eric - here's a link to a Stage 323 webinar on the subject that I recommend. Sara Elizabeth has raised millions of dollars for independent films and shares valuable information here: https://www.stage32.com/webinars/Gaining-Investors-Trust-and-Money
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Hey Eric, That's a good sign. It means he's a smart businessman who wants quality answers prior to making an investing decision. Feel free to connect here or shoot me a contact message via filmbudget....
Expand commentHey Eric, That's a good sign. It means he's a smart businessman who wants quality answers prior to making an investing decision. Feel free to connect here or shoot me a contact message via filmbudget.com - what he's looking for is a film finance plan - which I create based upon my 30 years of experience. Look forward to connecting and good work doing so via your landlord! That's how we do it! Jack
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A detailed film proposal followed by a private placement memo or investor agreement is needed, but finding streamer data for filling out return on investment projections is nearly impossible. Theatric...
Expand commentA detailed film proposal followed by a private placement memo or investor agreement is needed, but finding streamer data for filling out return on investment projections is nearly impossible. Theatrical and video data can be found or bought through sites like the-numbers.com. But streamers continue to refuse to make their figures available. Find the most similar and realistic comps you can and disclose the data limitations.
The film and music business are speculative at best. NOBODY can predict income from an entertainment endeavor. May as well toss your money down a water well.