On today’s episode of the “Daily Variety” podcast, Naveen Sarma, managing director of S&P Global and sector lead for U.S. media and telecom, delves into his recent report on sector trends in media and entertainment for the second half of the year. Sarma offers a mix of positive and concerning news for Hollywood and related industries.
Sarma highlights the enduring strength of the entertainment industry due to the high demand for content. However, he points out the challenge for producers to find innovative ways to generate profits from TV shows and movies.
“The problem lies in the fact that there are only twenty-four hours in a day. With increasing fragmentation, the traditional model of monetizing content across multiple geographies and platforms is no longer as effective,” Sarma explains. “While streaming has enabled global monetization of content, the issue of maximizing profitability across various platforms like television, theaters, and media companies remains unresolved, impacting overall profitability.”
Sarma also notes that major U.S. media companies are witnessing growth in profitability from streaming services but are still grappling with the decline of linear television. He emphasizes the need for linear television to stabilize or phase out entirely for streaming profitability to soar and for margins to significantly improve for media companies.
For more insights and analysis on the latest trends in the media and entertainment sector, tune in to the “Daily Variety” podcast on iHeartPodcasts, Apple Podcasts, Variety’s YouTube Podcast channel, Amazon Music, Spotify, and other podcast platforms.
With valuable insights from Naveen Sarma, the podcast offers a comprehensive look at the challenges and opportunities facing Hollywood and related industries in the evolving media landscape. Stay informed and up-to-date with the latest developments by listening to “Daily Variety” on your preferred podcast platform.
