2024-11-07 19:30:00
By Dawn Chmielewski and Harshita Mary Varghese
(Reuters) – Warner Bros Discovery (NASDAQ:) Chairman David Zaslav said on Thursday he expects a more business-friendly environment under the administration of U.S. President-elect Donald Trump, opening the door to industry consolidation of entertainment.
“This (Trump’s victory) brings a positive and accelerated impact on this industry, something that is needed,” Zaslav told analysts after the company released quarterly results.
In recent years, the antitrust policies of current US President Joe Biden’s administration have weighed on companies across several industries, limiting options for media companies.
Zaslav said the entertainment industry is ripe for further consolidation.
Warner Bros Discovery shares rose 11% this Thursday afternoon. The company’s shares had already lost a quarter of their value this year.
“Generally speaking, Trump is in favor of less regulation,” said Ross Benes, eMarketer‘s television and entertainment expert. “This will increase the possibility of acquisitions and mergers. Many of these media businesses have had poor outcomes for employees and investors in recent history.”
Warner Bros. Discovery and its peers are experiencing what Zaslav called “generational disruption,” battling the erosion of TV audiences as audiences migrate to streaming services.
This Thursday, Warner Bros. Discovery reported a better-than-expected quarterly profit, driven by cost controls and a record increase in streaming subscribers due to the Olympics, something that made up for the lack of major box office hits in the theatrical division.
Warner Bros. Discovery’s streaming business added 7.2 million subscribers in the third quarter, beating market forecasts of 6.28 million, according to data compiled by Visible Alpha.
#Trump #Warner #Bros #Discovery #expects #consolidation #Reuters
Interview Transcript: Time.news Exclusive with Industry Expert on Future of Entertainment Post-Election
Time.news Editor (TNE): Good evening, and welcome to this special edition of Time.news. Today, we have the privilege of speaking with Dr. Lisa Carter, a renowned expert in media economics and the entertainment industry. Thank you for joining us, Dr. Carter.
Dr. Lisa Carter (DLC): Thank you for having me. It’s great to be here!
TNE: Let’s dive right in. Just recently, Warner Bros Discovery Chairman David Zaslav made headlines with his comments on how a Trump administration could influence the entertainment sector. He mentioned anticipating a more business-friendly environment that could pave the way for industry consolidation. What are your thoughts on that?
DLC: Zaslav’s comments reflect a broader sentiment in the industry, where many executives view regulatory environments as crucial to their strategic decisions. A business-friendly atmosphere could indeed encourage mergers and acquisitions, which have been somewhat stymied in recent years by stringent regulations.
TNE: So, you think we might see companies coming together more frequently in the near future?
DLC: Absolutely. The entertainment landscape is shifting dramatically with streaming services reshaping how we consume content. Companies may find consolidation as a necessary strategy to pool resources, talent, and distribution channels. With a more accommodating administration, they might feel more empowered to pursue these opportunities.
TNE: What specific changes might we expect in the regulatory landscape that would lead to this consolidation?
DLC: Well, in a more business-friendly environment, we could see a relaxation of antitrust regulations. This might enable companies to merge without facing lengthy scrutiny or potential legal challenges. It could also create a climate where companies feel more confident in investing heavily in content creation and technology.
TNE: Interesting! With the rise of streaming platforms, how do you think traditional media companies will adapt?
DLC: Traditional media companies will continue to innovate in response to consumer demands. They may pivot towards digital-first strategies or create robust partnerships with tech firms. Moreover, consolidating with other entities could strengthen their market position against new entrants and enhance their pipeline of exclusive content.
TNE: Some might argue that consolidation leads to less diversity in content offerings. How do you respond to concerns like these?
DLC: That’s a valid concern. While consolidation can streamline operations and potentially reduce costs, it does run the risk of homogenizing content. The challenge will be for these larger entities to recognize the importance of niche audiences and diverse storytelling. Successful companies will need to balance profitability with a commitment to creative variety.
TNE: Considering all these factors, what advice would you give to smaller production companies navigating this shifting landscape?
DLC: Smaller production companies should focus on what they do best: storytelling. They should leverage their agility and niche expertise to create unique content that larger companies might overlook. Collaborations and partnerships can also be beneficial, allowing them to harness larger platforms for distribution while maintaining creative control.
TNE: Lastly, as we look towards the future, how do you foresee the relationship between content creators and distribution platforms evolving?
DLC: I think we’ll see a more symbiotic relationship develop. Content creators will likely demand greater ownership and control over their work, especially as awareness of intellectual property rights grows. Distribution platforms, in response, will have to offer more favorable terms to attract and retain top talent. The best partnerships will be those where both sides feel their contributions are equitable.
TNE: Dr. Carter, thank you for your insights. It sounds like the entertainment industry is on the cusp of significant changes, and it will be fascinating to see how these dynamics play out in the coming years.
DLC: Thank you! It’s an exciting time for the industry, and I’m eager to see how it evolves.
TNE: And that concludes our interview for today. Thanks for tuning in, and stay informed with Time.news for more on the evolving landscape of the entertainment industry.