Coronavirus Could Lead to Studio Mergers, End of 'Peak TV,' Analyst Says

Movie theaters around the country are closing due to the coronavirus pandemic. VIP Cinemas

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The economic fallout from the coronavirus pandemic could lead to the end of the “Peak TV” era and force consolidation among major film studios, analyst firm MoffettNathanson said in a gloomy report released Friday.

“We believe the linear TV industry should emerge in an even weaker state post this period with fewer subscribers, lower spending on original scripted content,” the report — titled “Say Goodbye to Hollywood” — read. “John Landgraf’s concept of ‘Peak TV’ will finally move to ‘post-Peak TV’ as cable, premium and broadcast networks look to rein in their spending.”

“When this is all done, the top streaming platforms – Netflix, Amazon and Disney – will emerge with the lion’s share of scripted content creation,” the report continued.

Also Read: John Stankey to Replace Randall Stephenson as AT&T CEO

The impact on the film industry could be even greater, as the coronavirus figures to accelerate the shift in movie-going from the theaters to home streaming. While MoffettNathanson said that consumers will eventually make their way back to the theater, studios will need to prioritize large tentpole films for box office, with the rest being shuffled off to streaming.

“There will likely be fewer movie screens in the U.S., even fewer DVDs purchased and, thus, fewer films made for those long-optimized and windowed release cycles,” MoffettNathanson said. “Studios will limit their investment in traditional theatrical releases.”

That could mean that, just like the music industry consolidated as CDs were replaced by streaming, the industry could see another round of major mergers, this time between film studios. “Going forward, we think only a handful of studios will have the proper mix of assets to profit from this shift in OTT behavior. Aside from Disney and their control of Disney+/Hulu and Warner Bros. with HBO Max, the three other majors (Sony, Paramount, Universal) and the two minis (MGM and Lionsgate) will likely need to consolidate to increase selling clout and accelerate cost savings. Indeed, this is what occurred in the recorded music industry over time as six once mighty global recoded music companies merged into three healthier ones,” the report said. “The film industry should emerge from the post-COVID-19 shutdowns in a different place.”

Also Read: WarnerMedia CEO: Coronavirus Has Us 'Rethinking Our Theatrical Model'

John Stankey, who will take over as AT&T CEO in July, said during the company’s quarterly earnings call on Wednesday that they were “rethinking our theatrical model.” Incoming WarnerMedia CEO Jason Kilar shared a similar view with TheWrap, predicting “there’s going to be further invention” in how film studios handle the traditional release windows.

Live sports and other events will make up the bulk of linear TV’s programming and drive the majority of its revenue, but the shutdowns will likely mean that more consumers will cut the cord in the meantime, MoffettNathanson argues. It’s not clear if they will come back when sports return to the field.

“We believe Disney is the only company with a big enough lifeboat and the organizational will to come out of these secular changes in a strong position while Fox’s focus on live news and sports remains the right strategy,” the report said.

These Celebrities Reached Into Their Pockets to Help Us Get Through the Pandemic (Photos)

As the number of people sickened by COVID-19 continues to rise, there is certainly no shortage of kind acts from people helping others get through the pandemic. And that includes celebrities and Hollywood artists social distancing like the rest of us. These famous do-gooders are reaching into their own pockets to make life under quarantine just a little bit easier.
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Oprah Winfrey announced on social media that she is donating $10 million to relief efforts, with $1 million of that specifically helping people who are struggling to buy food during the pandemic.
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Rihanna’s charitable organization Clara Lionel Foundation made a commitment of $5 million that will go to U.S. food banks as well as to helping advance testing in at-risk communities both in the U.S. and in Haiti and Malawi. The foundation — along with Twitter's Jack Dorsey — also partnered with the Mayor's Fund for Los Angeles and committed $2.1 million toward shelter, meals and counseling for victims of domestic violence. The fund, combined with Dorsey's contribution, totals $4.2 million.
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10-time Grammy-winner Taylor Swift has been quietly contacting people on social media who have said they've been struggling to pay bills during the pandemic. Those users then shared screenshots of Swift making donations to them of several thousand dollars each.
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TV host Kelly Ripa and husand Mark Consuelos donated $1 million to both the New York governor’s office, for the purchase of ventilators, and WIN, a New York-based organization that provides shelters to homeless women and children.
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Writer Roxane Gay has tweeted several times during the pandemic asking for those struggling to pay bills during the pandemic to share their mobile payment handle to receive personal donations from her.
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Ryan Reynolds and wife Blake Lively announced on social media that they donated $1 million to Feeding America and Food Banks Canada.
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Pop star Ariana Grande said in her Instagram Stories that she had made donations to several organizations, including Opportunity Fund, GiveDirectly, Feeding America, Croce Rossa Italiana and the World Health Organization.
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A physician in Los Angeles, Dr. Thais Aliabad, wrote on Instagram that Kylie Jenner, one of her patients, had "donated $1,000,000 to help us buy hundreds of thousands of masks, face shields, and other protective gear."
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NFL player Drew Brees told TMZ that he's donating $5 million to the state of Louisiana to help with the coronavirus relief efforts.
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Oscar-winning actress and humanitarian Angelina Jolie donated $1 million to No Kid Hungry to help provide meals for children in low-income families, the organization said in a statement.
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Country music legend Dolly Parton said on Instagram that she donated $1 million to Vanderbilt's research for a COVID-19 cure.
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Jay-Z's Shawn Carter Foundation matched Rihanna's donation of $1 million to relief efforts.
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Bruno Mars, who has a residency in Las Vegas, donated $1 million to the MGM Resorts Foundation to help MGM employees in the city who lost work due to the pandemic, his representative said, according to E News.
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The players, coaches and owners of the Golden State Warriors announced they are donating $1 million to help employees at the Chase Center who lost work because of canceled NBC games.
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Facebook COO Sheryl Sandberg partnered with a Silicon Valley food bank to put $5.5 million toward creating the COVID-19 Emergency Fund for Feeding Families.
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Twitter CEO and co-founder Jack Dorsey said on his platform that he is donating $1 billion in shares of his other company Square Inc. to help fund relief efforts. Dorsey said it is about 28% of his wealth. After "we disarm the pandemic," Dorsey said, the money will also help fund girls' health and education, as well as universal basic income.

Along with Rihanna's charitable foundation, committed $2.1 million toward shelter, meals and counseling for victims of domestic violence for a total $4.2 million grant.
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Amazon CEO Jeff Bezos said on Instagram that he is giving $100 million to Feeding America, an organization with more than 200 food banks across the country.
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Beyonce's BeyGOOD foundation also partnered with Jack Dorsey, teaming up with his #startsmall initiative to donate $6 million to local community organizations so they can provide necessities like food, cleaning supplies, protective gear, medicines and more.
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Greg Berlanti pledged $1 million in COVID-19 relief funds that will go directly to the 5,000 staffers working on the 17 series currently in play at Berlanti Productions, as well as others in the entertainment industry that have been affected by the shutdown. He announced the gesture in a company-wide memo on April 29
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There is certainly no shortage of kind acts from people helping others get through the coronavirus pandemic, and that includes celebrities and Hollywood artists social distancing like the rest of us

As the number of people sickened by COVID-19 continues to rise, there is certainly no shortage of kind acts from people helping others get through the pandemic. And that includes celebrities and Hollywood artists social distancing like the rest of us. These famous do-gooders are reaching into their own pockets to make life under quarantine just a little bit easier.

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