The Finale?
A famous business principle is that whatever works gets copied. The success of Netflix (NFLX) exemplifies it. After taking a risk with streaming and succeeding in a big way, nearly every major entertainment company followed suit.
For the past few years, companies have thrown fortunes into developing their own streaming platforms, with new content dropping daily — and new services almost as often. However, if earning reports are anything to go off, the golden age of streaming might already be at an end.
In the Red
For most companies, running a streaming platform is highly unprofitable, mostly due to the cost of launching one. New streamers need to invest heavily in buying or producing content to entice people to pay for a subscription. And, the more competition they have, the more they must spend to produce hit shows or movies. Even after racking up subscribers, it can take years to recoup initial expenses.
In fact, nearly every major streamer is still hemorrhaging money. Netflix alone remains profitable. The original streaming platform posted $5 billion in profit over the first three quarters of 2022. During the same period, every other major streamer lost at least $1 billion.
Investors used to encourage this mindset among streamers: growth over profit. But now, in the face of a recession, they’re changing channels. Wall Street wants to see growth of earnings, not just subscribers. This means that streaming platforms need to start justifying their losses to investors and carving clear paths toward the green.
Coming Next Season
This isn’t to say that streaming is going anywhere. More likely, it will consolidate.
Larger companies like Amazon (AMZN), who can afford to lose billions on user growth, should continue churning out content at the same rate for the foreseeable future. Smaller players, however, will have to pivot to avoid being bought out or shut down. For example, Warner Brothers Discovery (WBD), which owns HBO Max and Discovery+, is already preparing to combine the two platforms this year.
For consumers, this means that you can expect your streaming options to dwindle, rather than expanding. This might come as welcome relief for those wondering if rewatching Mad Men, or catching the latest historical documentary, is worth the costs of shelling out for AMC+ (AMC) or BBC Select. For those who heralded the streaming industry as the death knell for cable TV, it may be disappointing to see it shaping up to simply be cable’s second coming.
Learn More:
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
More from MediaFeed:
7 fun ways to save money
Whether you’re building your emergency fund or putting a portion of your paycheck away for you and your family, chances are you’re saving money. It’s possible this all-important financial habit can feel tedious and boring, but with a little creativity and determination, saving can be interesting, dynamic and exciting.
Related: 50/30/20 rule demystified
evgenyatamanenko/istockphoto
Not sure how to make saving money fun? You could start by identifying your goals. Are you saving up for a big purchase, like a down payment on a house? Are you saving for your child’s future education?
Once you’ve figured out what you want to accomplish, you could determine a target amount of money you’d like to save. While this number might change over the course of your savings journey, you can always readjust your plan.
If you have an idea of how much money you’d like to work toward saving, you can consider diving deeper into your finances to pinpoint realistic objectives.
Once you’ve reviewed your individual financial circumstances and have a better idea of your savings goal(s), you could try these fun ways to save money.
DepositPhotos.com
With the right company, even the most mundane tasks can be enjoyable. You could talk about your savings goals with your friends and family members to potentially identify a saving buddy with similar objectives.
An ideal saving buddy will be supportive of your financial goals, flexible about changing plans in order to accommodate your specific savings needs and have a positive money mindset.
Checking in with your buddy regularly could help keep you both on track and you can celebrate each other’s accomplishments. If you’re stressed about how to make saving money fun, you could brainstorm creative tactics with your saving buddy and implement them together.
DepositPhotos.com
Saving money does not have to be synonymous with missing out on exciting opportunities around you. You could enjoy free activities offered in your area.
Perhaps your local park offers free theater performances or concerts in the summer, or your area bookstore hosts interesting literary panels and author discussions with no attendance fee. Think about the resources provided by your local library, such as book clubs, language exchange programs, craft nights and movie screenings.
jacoblund / istockphoto
A potential hands-on and fun way to save money is adopting a DIY (do-it-yourself) attitude. You could create things using materials you already own instead of buying new products. When meal-prepping for the week ahead, think about recipes that incorporate ingredients you already have in your pantry.
You could make your own household cleaners out of vinegar, lemon rinds and herbs or face masks and toners using fresh ingredients like avocado, tea, honey and oatmeal. There are ways to reuse materials that might otherwise be thrown out or recycled: Newspapers and coupon booklets could make great wrapping paper, and old cereal boxes might be repurposed into desk organizers.
mediaphotos
If you’re looking to break up the monotony of saving, you could consider incorporating games and challenges into your overall savings plan. A friendly competition with your saving buddy could be seeing who can save the most money every week, month and/or year.
Creating small rewards for reaching your goals might be an incentive, too. (Bonus points if these rewards are free!) No-spend weeks, where you refrain from spending any money for seven days, also might help with saving. You could make it fun by taking out a $20 bill from the ATM at the beginning of each month, for example and not spending it.
DepositPhotos.com
Getting serious about saving money doesn’t mean you need to give up “luxuries” such as exercising, new clothes and accessories, or home goods. Trading skills and swapping goods are two potential examples of how to make saving money fun while not depriving yourself of the things you want.
You could go to your favorite yoga studio and ask if they have a work-trade program where you can clean or complete administrative duties in exchange for classes. A clothing swap with your friends could refresh your closet at no cost. You might also consider an informal exchange with skilled friends.
For example, if you’ve been eyeing an original painting from your artist pal but don’t have the funds to pay her, you could offer your website design services (or some other helpful skills) for the painting.
DepositPhotos.com
Sometimes, cutting down on expenses might not be the most effective way to reach a savings goal. It might be easier, in some cases, to make a bit more money than to reduce costs, especially if you are spending more than 50% of your income on non-discretionary expenses like groceries and debt payments.
A financial advisor can help you determine if increasing your income is an appropriate action based on your individual financial profile.
If so, you could reflect on your particular skills and/or hobbies to see if there is a way to translate one of them into an income stream.
For example, if you love to knit, you could start an online store for your yarn creations. If you have a knack for stringing words together, you could offer your writing or editing services in a freelance capacity. A successful side hustle could help bring additional money into your bank account and add more fun and enjoyment in your life.
Photobuay / istockphoto
Putting away money for your future does not need to be a boring task; there are countless fun ways to save money that could be customized to your specific financial needs and wants.
Starting to save today—even in small amounts—might help prepare you for even more fun in the future.
Learn more:
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi Money
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank.
Depositphotos
Featured Image Credit: Kosamtu.
