Buckle up: 2022 has been a bumpy ride so far for global equities markets. Experts may be debating how long the bear market will last or when a full-fledged recession could hit, but this much is clear: The good times are over.
There’s no shortage of factors driving the downturn: Rising inflation, interest-rate hikes, supply chain issues, the lingering pandemic, the war in Ukraine and the ripple effects of economic sanctions on Russia. This sorry state of affairs is spreading the pain throughout the global economy.
But for the media and entertainment business, the macroeconomic clouds are adding salt to a festering wound. Hollywood has already been contending with its own particular set of problems amid the volatility, from the encroachment of Silicon Valley giants diverting audience eyeballs to launching viable streaming services as Wall Street rapidly loses patience with the red ink needed to build up capital-intensive streaming platforms.
With content companies large and small facing a unique set of challenges, Variety and its subscription market-research offshoot, Variety Intelligence Platform, joined forces for this special-edition Survival Guide to dig into how entertainment’s biggest players will navigate the rocky road ahead. This issue offers in-depth financial analysis of where things stand for the media giants and where they may be heading.
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For the current generation of executives working in and around Hollywood, they’ve never experienced a time this challenging. But students of industry history know showbiz has been through lean periods before and even found new opportunities amid so many obstacles. Though there will undoubtedly be businesses that won’t make it unscathed through the coming months, others may emerge intact and some may even thrive. It’s all about understanding the difficult world around you and looking for the white spaces others might not be seeing.
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Variety Intelligence Platform is an example of Variety’s growing investment in deep-dive proprietary data and forensic financial analysis of media and entertainment. This Survival Guide is meant to be just that — an effort to help an industry in transition understand the twists and turns and to call it like we see it in a fast-changing market.
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Co-Editor in Chief, Variety
President and Chief Media Analyst, VIP+
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