Hollywood Struggles to Make Streaming Profitable Amidst Changing Landscape

Hollywood studios are facing challenges in making streaming profitable as the industry undergoes significant changes. The rise of streaming platforms like Netflix has disrupted the traditional economics of the media industry, and legacy media companies are struggling to compete. While streaming remains a focus as consumers increasingly opt for it, the high costs and low revenues per subscriber are catching up with studios. This has led to job cuts, content budget reductions, and the exploration of various business models to piece together profits. The lack of transparency in streaming viewership data has also created contention in contract negotiations with writers and actors. To make streaming profitable, studios are subsidizing the subscription model with advertising, licensing content to other platforms, cracking down on password sharing, and adopting hybrid models that combine subscription fees and ads.