Panel, Conference Presentation
Envisioning the Future of Media and Entertainment
Milken InstituteJulia Boorstin, Jeffrey Hirsch, Gale Anne Hurd, Charles D. King, Asif Satchu, Jeremy Zimmer, Jeff Hirsch
- Starz aims to operate its premium service alongside major competitors like Netflix, Disney+, and Hulu, with a strategic plan to launch in 15 additional markets within the next three years to capitalize on a global expansion window before rivals like AT&T and Disney fully enter the space.
- Future growth will leverage Amazon and Apple platforms to economically access previously unreachable markets, a strategy driven by the belief that technology is rapidly shrinking the world, though this expansion requires purchasing off-channel marketing assets in specific markets later in the year.
- Content strategies focus on filling a predicted gap in premium female-focused programming in Europe while targeting African-American and Latino audiences as core drivers of major film franchise success.
- The outlook anticipates a significant shift in international revenue, with data suggesting movies featuring local comedians will see increased global take, while content featuring people of color is expected to derive a much larger percentage of profits from international markets compared to the historical 10%.
- Industry observers predict a structural change where secondary markets for streamer-exclusive content emerge, potentially allowing for back-end royalties based on viewership similar to the music industry's Spotify and Apple Music models, creating a meritocracy for creators.
- Direct-to-consumer businesses are expected to rely heavily on data regarding lifetime value and churn to schedule shows and drive growth, with Netflix's transparency efforts deemed timely given a sample size large enough three to four years ago to establish effective content frameworks.
- However, significant risks exist regarding data usage, as decisions based on data without sufficient insights or sample sizes are predicted to be dangerous, and traditional media companies may struggle to match the losses Netflix incurred before profitability, potentially forcing a market exit or acquisition.
- Piracy is forecasted to cause $50 billion in lost streaming income between the present and 2022, while theater owners face the necessity of adopting real data providers and innovations like MoviePass to survive, as release windows between theatrical and home entertainment continue to compress.
- Brands are expected to become strategic partners and financial firepower for AVOD platforms and content creators, utilizing dynamic ad insertion and holistic vertical connections across film, television, and live events to drive marketing efficiency.
- Diversification trends are projected to continue, with expectations for more women directors to lead major franchises, increased diversity in writers and executives, and a broadening of project types as independent companies thrive in volatile environments by incubating talent and producing content cost-effectively in global regions.
- Appointment television and live event social sharing are not expected to disappear, and the industry anticipates more young creators gaining access through social media virality, alongside the rise of female-perspective content creating new opportunities for female directors.