Hollywood Stocks Fall Sharply in 2022 Amid Ad Challenges, Focus On Streaming Profits

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U.S. media stocks fell back to Earth amid pressure on streaming subscriber growth, increased cord-cutting and weakened advertising trends.

Those initiatives, and the fact that the streamer returned to subscriber growth in the third quarter — adding 2.4 million subscribers for a total of 223 million globally — has made some analysts more optimistic, while others remain in wait-and-see mode.

That wasn’t all. The industry also faced questions about its ability to reverse declines with a pivot to streaming. Investors asked when big content spends to drive subscriber growth would lead to streaming profitability. That closer scrutiny was compounded by weakening advertising trends amid recession fears in 2022. Ultimately, sector biggies giant saw their stocks finish 2022 down sharply, often underperforming the drop in the broad-based S&P 500 stock index, which fell 19.5 percent as of Dec. 29.

 

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The reason for the losses is the fact they prioritize, woke/checkbox diversity/social engineering, over actually quality entertainment with good storylines, competent writing and production.

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