Why Streamers Can Do Better Than Archaic Economic Fixes Like Mass Layoffs | PRO Insight

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As an industry known to innovate, it’s time to find other ways to appease Wall Street, improve financials and secure a streaming-first plan

entertainment layoffs
Major layoffs have hit AMC Networks, Warner Bros. Discovery, Disney and Netflix.

Major media and entertainment companies are turning to the 1970s-era tactic of laying off thousands of employees, ostensibly in preparation for a potential incoming recession. Concerns from the wider industry are making these job cuts easier to accomplish, as headcount reductions have become almost expected. But there are more than macroeconomic factors behind these large media companies’ significant losses. The industry is reeling from a painful, initially gradual and now abrupt, transition from a legacy broadcast model to streaming-first.  

The main difficulty is that media and entertainment companies are still figuring out how to make the streaming-first model profitable, a problem made harder as they simultaneously battle rapidly incoming concerns from Wall Street.