Over the last 18 months, Wall Street has focused on streaming becoming broadly profitable. That shift, along with Hollywood strikes that reduced content output, have forced a re-evaluation of legacy media players’ streaming aspirations.
It has become increasingly clear that Netflix is winning the streaming wars — and is not likely to be caught anytime soon.
Amid the changing market dynamics, Netflix will release its fourth quarter earnings for 2023 on Tuesday after the market close, the first of the major entertainment companies to report this year.
The reduction of content spend and output, and an increase in third-party licensing, have been a “a tacit acknowledgement that not all media companies will be able to achieve Netflix’s global reach and scale in streaming,” Bank of America analyst Jessica Reif Ehrlich wrote in a note to clients last week.
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