After 146 days, WGA has reached a tentative deal with Hollywood studios, which is one of the steps need to get film and television production going again. Needham & Co. Senior Analyst Laura Martin explains how strikes could impact the volume of content that streaming services produce. “Wall Street is demanding they.. move to profitability faster,” Martin says. For streamers, this could mean cutting down seasons by filming fewer episodes—“less content spending”, as Martin notes. Martin expects consolidation in the industry, which will help “get rid of duplicative costs.” In regards to smaller streamers, Martin states that due to large competitors such as Amazon (AMZN) and Netflix (NFLX) “there’s no advantage to being small.” For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
A deal would put an end to some of the uncertainty media stocks have been facing amid Hollywood's double strike.
In February, Disney chief executive Bob Iger surprised employees and investors by saying that “everything is on the table” regarding the future of Hulu, adding that its content was “undifferentiated”. Many assumed Iger was ready to jettison the streaming service. On September 30, Iger’s team will begin a months-long process with Comcast to determine the value of the cable giant’s minority stake in Hulu, setting the stage for Disney to purchase it and gain full ownership.