The media industry is in turmoil, and that's not changing anytime soon

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The media industry is in turmoil, and that's not changing any time soon

Striking Writers Guild of America members walk the picket line in front of Netflix offices as SAG-AFTRA union announced it had agreed to a 'last-minute request' by the Alliance of Motion Picture and Television Producers for federal mediation, but it refused to again extend its existing labor contract past the 11:59 p.m. Wednesday negotiating deadline, in Los Angeles, California, July 12, 2023.Traditional TV is dying. Ad revenue is soft. Streaming isn't profitable.

All of this turmoil will be on investors' minds as the media industry kicks off its earnings season this week, withNetflix, with a new advertising model and push to stop password sharing, looks the best positioned compared with legacy media giants. Last week, for instance,CEO Bob Iger extended his contract through 2026, telling the market he needed more time at the Mouse House to address the challenges before him.

"I think Bob Iger's comments were a warning about the quarter.

Iger has talked at length in recent investor calls and Thursday's interview about how advertising is part of the plan to bring Disney+ to profitability. Others, including Netflix, have echoed the same sentiment. Netflix is scheduled to report earnings after the close Wednesday. Wall Street will be keen to hear more details about the rollout of its password sharing crackdown in the U.S. and state of its newly launched ad-supported option. The company's stock is up nearly 50% this year, after a correction in 2022 that followed its first subscriber

 

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