I agree, it's a blend of big tech mixing with studios and the impact and influence of wall street on all of them now. I work in tech, and can tell you, everything is done with a goal of improving earnings per share. Profit, R&D, and long term sustainability don't matter at all as long as the street approves of your earnings per share. And the moment they don't, companies begin to cut margins to stave off activist investors (hedge funds). Who, if you don't cut margins enough, will buy up shares to hit certain ownership percentages so that they can start influencing the board. This is the problem in the streaming sector, the metric for earnings per share was based on the constant growth in subscribers, but now that growth has slowed the street has come calling demanding blood and the upper level executives will do whatever than can so that their stock options aren't hit and/or they won't be ousted by board and shareholder manipulation from those hedge funds. I've been a part of this scenario at multiple companies.Claude! said:At a guess, the Amazons and Apples are against this in part because they're (allegedly) losing a ****load of money on their streaming services (largely due to circumstances within their control).TCTTS said:
Very well said, and I agree 100%. That's also cool to hear about your executive approach, and my hat off to you for going against the grain in that regard. Honestly, you and I probably aren't that far apart on this stuff, or even politically. I think a lot gets misinterpreted and projected in the noise here, which I'm as much to blame for as anyone.
I'm also not a big union guy or anything, and am not even a member myself. I just want see A) people treated/compensated fairly, and B) these corporations finally have to concede in some way, shape, or form. Granted, based on what I'm hearing, it sounds like it's not even the traditional studios who are being the staunchest, it's Big Tech - Netflix, Amazon, Apple, etc - who, being the new guys on the content block, either don't fully understand how this industry has operated for decades - or - don't care. Probably a little of both. Either way, all the better that they hopefully get a dose of reality too. It sounds like, if there's something on the AMPTP side to cause a fissure, it'll be the old guard vs. the new guard battle, which the unions can hopefully take full advantage of and exploit.
Ironically, if you don't really understand this issue, the movie Other People's Money with DeVito is actually a good guide. But instead of investors and small to medium businesses, you now have conglomerates doing it to enterprises (and not much pushback from the top of the enterprises since it will drive up their stock compensation).