As 2023 ends, the film industry is at a turning point. It faces many challenges and chances that will change Hollywood in 2024. The writers and actors strikes, and the rise of AI, are just the start. But what does the future hold for movies?
How will the film industry use new technologies and trends to tell great stories and engage audiences worldwide?
Key Takeaways
- Streaming content budgets are expected to decrease due to rising costs and diminishing revenues, leading major platforms to produce more with less.
- Analysts foresee top-tier streaming services like Netflix and Disney+ gaining market share, while second-tier providers struggle to achieve profitability.
- The film industry faces challenges in raising subscription prices due to the growth of lower-priced advertising tiers and free options.
- Innovative media companies could face pressure to demonstrate positive earnings in 2024.
- Algorithms on major platforms may shift to prioritize monetization over user preferences, potentially leading to user dissatisfaction.
Major Streaming Trends Shaping 2024
The streaming world is changing fast, and some big trends are set to shape 2024. Content budgets are likely to drop, pushing streamers to focus on well-known shows and use AI to make new content.
Streamers Cutting Content Budgets
Peter Csathy, chairman of Creative Media, says streaming budgets will go down. This is because costs are rising faster than income. He believes Netflix and others will make more with less money, ending the era of huge budget increases. This means they’ll pick their projects carefully.
Barbie Effect: Focus on Franchise Content
Csathy also sees a “Barbie Effect” where big streamers focus on timeless, franchise content. Walt Disney is a top example. This strategy helps them use their well-known stories wisely and lowers the risk of making new, unknown content.
AI Experimentation to Cut Costs
Netflix and others will start using AI to save money and make new content. As AI gets better, it could change how we make shows. It might even cut down on the hard work of making movies and TV shows.
These trends show how the streaming industry is changing. Players are looking for ways to stay profitable and competitive. By focusing on well-known shows, using AI, and managing budgets well, they hope to keep their audiences happy and their businesses strong.
Consolidation Unlikely to Save Streaming Businesses
Legacy media companies are under a lot of pressure in the streaming business. Experts say that consolidation won’t be the quick fix many hope for. Rich Greenfield from LightShed Partners believes these companies are too late and not ready to compete with Netflix, Amazon, and Disney.
Greenfield warns that adding more linear TV assets to these companies could be a financial disaster. He also points out that getting regulatory approval for big media deals will be hard. This makes the future uncertain for these companies.
The streaming industry is facing huge losses, with traditional media companies losing over $5 billion. This has led to a push for cost cuts and mergers to make money and grow sustainably.
| Streaming Service | Subscriber Numbers | Financials |
|---|---|---|
| Disney+ | 112.6 million global subs, 37.6 million from Hotstar | $387 million loss in Q4 2023, down from $1.4 billion loss in Q4 2022; $25 billion content spend in 2024, down from $27 billion in 2023 |
| Paramount+ | 63 million subs | $238 million net loss in Q3 2024 |
| Peacock | 30 million subs | Expected $2.8 billion loss in 2023 |
| HBO Max | 95 million subs | $2.44 billion in revenue in Q3 2023 |
| Netflix | 247.2 million subs | Implemented paid sharing option to boost revenue; Netflix films and series accounted for 55% of viewing in the first half of 2023 |
| Prime Video | Over 200 million global subs | Surpassed Netflix as the most-subscribed-to streaming service in the US; adopted weekly episode release strategy |
The streaming industry has lost billions in recent years. Netflix, Amazon, and Disney are leading the market but still struggle to make profits. Legacy media companies face big challenges in building successful streaming services.
As streaming changes, companies must adapt and focus on what consumers want. They need to work together and innovate to get through these tough times.
Profitability Pressures for Second-Tier Streamers
The streaming world is changing fast, creating a big gap between top and second-tier streamers. Big names like Google’s YouTube TV and Netflix are getting more viewers and advertisers. But, smaller players like Comcast’s Peacock might struggle to make money.
Top-Tier Streamers Gaining Market Share
Top streamers are getting stronger. They have big brands, lots of shows, and a lot of money. This lets them draw in more viewers, making it tough for smaller ones to compete.
Difficulty Raising Subscription Prices
Second-tier streamers also face a big challenge: raising prices. After some raised their fees in 2023, it’s hard to do it again. They might have to find new ways to make money or cut costs.
The streaming world is changing fast. Big players are getting stronger, while smaller ones face more pressure. To survive, they need to offer great content, keep prices fair, and work efficiently.
Algorithms Shifting Away from User Priorities
Music industry analyst Mark Mulligan of MIDiA Research says big platforms are now pushing users towards content that makes money for them, not what users like. For video streamers, Netflix’s goal to get people watching its own shows more than others is a big reason for this. This means users feel the algorithms don’t care about what they want, a problem that will get worse in 2024. It will make users unhappy and could open doors for new platforms that focus on what users want.
Big platforms are moving their algorithms from focusing on what users want to making more money. This will make users even more unhappy with what they see and get recommended. This trend is driven by the need for big platforms to make more money.
“Users end up feeling that the algorithm is not listening to them anymore.”
When platforms put making money first over what users want, the user experience gets worse. This could be a chance for new platforms that focus on users to come in and shake things up.
Platforms need to find a balance between making money and what users want. If they don’t, they could lose trust and engagement from their audience.
film industry updates 2024: AI Regulation and Copyright Challenges
The film industry is facing big changes with AI. It needs strong rules and clear copyright laws. Experts think the US will follow Europe’s lead in managing AI’s impact on creative work.
US Likely to Follow EU’s Lead on AI Regulation
Peter Csathy, an expert in media and tech, says the US will make new rules for AI. These rules will help with transparency, track content origins, and protect against misuse of names and images. This move comes as the US looks at the EU’s strong AI laws.
Copyright Protection for AI-Generated Works
There’s a growing push for a ‘right of publicity’ in the US. But, copyright is seen as the key to tackling AI-generated content issues. The lack of clear copyright laws for AI works has led to legal fights, shaping the future of AI in film.
Recent court decisions say copying copyrighted works by AI might be okay if it changes the work in a new way. But, the industry is watching closely. Groups like the International Alliance of Theatrical Stage Employees are warning about AI’s effect on jobs in entertainment.
The film industry is trying to find a balance between innovation and protecting creators’ rights. The outcome of these discussions will greatly affect the industry’s future and how it deals with new tech.
New Players Emerging Amid Theatrical Challenges
The film industry is going through big changes, bringing new players into the spotlight. Even as big names like Paramount Pictures are merging, new companies are growing. They’re making their mark in the movie world.
A24 Expanding into Bigger Budgets
A24 is one of these new players. It’s known for making low-budget films that get great reviews. Now, A24 is trying out bigger budgets. This move shows they believe they can draw in more people and make hits, even with the challenges in theaters.
Angel Studios’ Unexpected Success
Angel Studios is another new star in movies. They’re a Christian film company that hit it big with “Sound of Freedom.” This film made almost $250 million last summer. It proves that new companies can shake things up by reaching specific audiences.
These stories show how the film industry is adapting and growing. Even with big challenges, new players like A24 and Angel Studios are finding success. This shows there’s still room for new ideas and growth.
Concert Films Reviving Theatrical Distribution
The film industry is seeing a big comeback of concert films. This could change how movies are shown in theaters. A report from the Variety Intelligence Platform shows “Taylor Swift: The Eras Tour” concert film is leading this trend.
AMC Theatres, the biggest movie theater company in the U.S., Europe, and worldwide, is growing its team. They plan to release more concert films outside the usual movie system. This move by AMC Theatres shows concert films might help theaters recover, as people look for unique movie experiences.
Concert films are back in theaters because people love live shows and being together. AMC Theatres saw a huge success with “Taylor Swift: The Eras Tour.” From July 3 to July 7, they had 4.2 million guests in the U.S., making it their busiest period.
The success of concert films is making the industry take notice. AMC Theatres and others are looking to make the most of this trend. They plan to release more films with famous musicians, giving fans a special movie experience.
The return of concert films in theaters is a big deal for the movie industry. As people keep looking for unique and exciting content, these films could help theaters bounce back. They offer a chance for a comeback after the challenges of streaming and the COVID-19 pandemic.
Toxic Culture’s Impact on Female Talent Pipeline
The film industry has faced a toxic culture that has slowed down the growth of female talent. Women only make up 17% of IT specialists in the UK. In 2018, only 9% of female graduates studied a core STEM subject. This lack of representation is also seen in the film industry, where women are just 22% of directors and 33% of film writers.
The #MeToo movement has brought attention to women’s stories silenced by non-disclosure agreements. Yet, the industry still struggles with diversity and inclusion. Women in science, engineering, and technology are 45% more likely to quit within a year of starting a job. This shows the challenges they face in male-dominated fields.
This toxic culture affects the film industry’s talent pipeline. Only three women have won the best director award from the Academy Awards in 95 years. Women are only one in five in above-the-line jobs in the industry. This lack of representation limits the diversity of stories and perspectives on screen, creating a cycle of exclusion.
But, there are signs of progress. The Tech Talent Charter aims to get 600 signatories by the end of 2020 to make the tech workforce more diverse. More than 8 out of 10 female millennials in Britain look for employers with a strong diversity and inclusion record. In film, studios are working to address gaps by setting standards for the 2024 awards.
The journey ahead is tough, but there’s hope the film industry can change. By tackling toxic culture and offering more equal opportunities, the industry can unlock its creative potential. This will help deliver stories that truly reflect our diverse world.
| Statistic | Value |
|---|---|
| Women make up just 17% of IT specialists in the UK. | 17% |
| Only 9% of female graduates in 2018 studied a core STEM subject. | 9% |
| US women in science, engineering, and technology fields are 45% more likely than men to quit within a year of taking a job. | 45% |
| Women represent just 22% of directors and 33% of film writers. | 22% directors, 33% writers |
| Only three women have won the best director accolade from the Academy Awards in its 95-year history. | 3 |
| Women make up just one in five above-the-line jobs in the film industry today. | 20% |
“The path forward is not an easy one, but there is hope that the film industry can learn from the past and open its doors to more diverse voices and perspectives.”
Conclusion
The film industry is changing fast, moving towards direct-to-streaming releases. This change brings both challenges and chances for a better, more diverse future. It’s time for the industry to welcome women and diverse voices more fully.
New technologies like data analytics and artificial intelligence could help the industry. They offer hope for a brighter future. By using these tools and focusing on inclusivity, the film industry can become more vibrant and resilient.
The past year has been tough for the film industry, but there’s still hope for the future. By valuing diverse perspectives and supporting women, the industry can move forward. This way, it can create a more sustainable and innovative future that will engage audiences worldwide.