Dive into this month’s Paramount+ news.
Pattern of Activist Investors at Paramount+ Spells Unprofitability of Streaming
You could look at the bloodletting at HBO Max as an anomaly but with Disney+ forecasting they will unbundle ESPN you begin to speculate. But when real money gets involved like the recent activist investor demands at Disney over Disney+ and now legendary shareholders at Paramount+ fearing the same, it’s clear that streaming services are either going to raise rates exponentially (soon) or many will get out of the game. Why?
New investors are exercising caution in considering investing in streaming services due to several factors. Firstly, the streaming market has become highly saturated with numerous players vying for subscribers’ attention. This intense competition can lead to a challenging environment for new entrants or smaller players to gain a significant market share and generate substantial returns on investment.
Secondly, streaming services require significant investments in content creation, acquisition, and technology infrastructure. The costs associated with securing exclusive rights to popular content and producing original programming can be substantial, impacting profit margins and requiring continuous reinvestment to stay competitive. This ongoing need for high levels of capital expenditure can limit potential returns for investors.
Thirdly, consumer preferences and viewing habits are continually evolving in the streaming landscape. As a result, there is a risk that a particular streaming service may struggle to adapt to changing market trends and consumer demands. The success of a streaming platform heavily relies on its ability to offer compelling and relevant content, and failure to do so may result in a loss of subscribers and revenue.
Additionally, the streaming industry faces regulatory challenges, including issues related to licensing agreements, copyright disputes, and potential changes in regulations that could impact the industry’s landscape. These uncertainties introduce a level of risk for investors, as legal and regulatory developments can significantly impact the profitability and operations of streaming services.
Lastly, the streaming market is heavily dominated by a few major players who have established brand recognition, vast content libraries, and substantial financial resources. These dominant players can leverage their market position to dictate terms with content creators, negotiate advantageous distribution deals, and potentially squeeze out smaller competitors. This can make it difficult for new entrants to gain a foothold and attract a significant subscriber base, limiting the potential for profitability.
Shareholders are losing money hand-over-fist due to high costs, evolving consumer preferences, regulatory challenges, and the dominance of established players like Netflix when evaluating investment opportunities in the streaming services sector. While there are undoubtedly success stories such as Netflix, and Prime, the risks and uncertainties associated with the market make it a sector that demands thorough analysis and careful consideration before making investment decisions.
Popular Dungeons & Dragons: Honor Among Thieves Streaming Soon
Many missed this gem in theaters. There have been numerous failed attempts at a Dungeons & Dragons film. Honor Among Thieves turned out to be a huge surprise. Due in part to so many lackluster efforts, no one gave the latest go any consideration. Many who have seen other franchises go sour from forced and contrived social messages also dismissed this upon early storyline leaks. Then this happened. Dungeons & Dragons: Honor Among Thieves had some great characters and a solid theme that every viewer could latch onto. So if you missed it in theaters, catch it on May 15, 2023, on Paramount+.
Is Rabbit Hole Best As a Single Season?
With Rabbit Hole a general success in terms of streaming stats, it could merit a second season. Should it? The story device of the unreliable narrator, as it applies to the protagonist in the visual medium is something we all enjoy when there is a character-building payoff. Rabbit Hole follows that line. But it is often overused and worn out. Many other streaming services have used this and are using it now. It’s getting old, look at Amazon Prime Video’s Citadel as a current example. While Rabbit Hole’s protagonist grew to what appears a complete arc in season one, there needs to be an entirely new angle for the show if it wants to gain traction in season two. For now, there is no confirmation of a Rabbit Hole Season 2. Maybe it’s best left alone as a compartmental story.