Summer edition: Consequences of US writers' strike, touring pop stars boost local economies and Disney's downturn
June 2023
Hello and welcome!đ
Itâs the end of Q2, which means weâre halfway through 2023 and officially in summer territory (for those of us north of the equator).
This special edition of Deep Dive will focus on one of my favourite topics - the business of entertainment. Rapid changes in media, technology and consumer preferences are transforming the industry and altering power dynamics.
As always, your likes, comments and feedback are appreciated.
SCREENWRITERS UNITE
Brace yourself for a much reduced slate of TV shows and scripted programming from the US. A strike by the Writers Guild of America (WGA) is entering its third month, and the negotiations appear to be going nowhere.
To recap: On 2 May, the 11,500-strong screenwriters union decided to walk out following a long-standing contract dispute. Members of the WGA argue that streaming has upended revenue and compensation models, while advances in AI could force them to accept lower wages to âtidy upâ computer-generated material.
As a result, the likes of Saturday Night Live, The Late Show with Stephen Colbert and Last Week Tonight with John Oliver came off air earlier than expected. And if a resolution isnât found soon, series such as Abbott Elementary, Hacks and Emily in Paris wonât start production in time for their usual slots. Several major film shoots are also on hold.
The impact of the WGA strike is being felt across Hollywood. Dozens of camera crews, make-up artists, prop suppliers, costume designers, caterers and assistants are unemployed due to the work stoppage.
The WGA has called for international solidarity, however, the standoff could prompt studios to buy content made domestically in the UK, Australia, Canada, France, South Korea etc.
Reality TV, sports and news bulletins are other options to fill schedule gaps.
THE ECONOMICS OF CONCERTS
Two pop idols are currently on tour, and the immense fanfare surrounding them is boosting local economies.
When BeyoncĂ© kicked off her âRenaissance World Tourâ in Sweden in May, thousands of people flocked to Stockholm for the opening shows. All that extra spending on hotels, restaurants and travel could have contributed to a spike in monthly inflation, according to Danske Bankâs Michael Grahn.
The âBeyoncĂ© blipâ theory quickly made headlines, with some wondering if Bruce Springsteenâs June gig in Gothenburg will have the same effect.
Meanwhile, Taylor Swiftâs âEras Tourâ continues to generate column inches, particularly in the Wall Street Journal and NY Times. Among debates over ticket prices and private jet use, analysts have discovered a âTSwift Liftâ as the singer traverses the US.
Cities such as Chicago, Las Vegas and Nashville clocked higher hotel occupancy rates when Swift performed at her sold out shows (in enormous stadiums). Whatâs more, this âliftâ is set to go global. Singapore is already anticipating an influx of visitors after Swift announced six dates in the Lion City for next March, her only stop in Southeast Asia.
For Bloomberg, the key question is: which musical act can pack enough arenas to register a tour gross of US$1 billion? Swift or BeyoncĂ© could smash that record in 2024, but Elton Johnâs farewell extravaganza is in the running as well.
SUCCESSION (DISNEYâS VERSION)
For a decade, Disney dazzled investors with its film franchises, merchandise sales, live sports programming and theme park growth.
But the House of Mouse is now facing battles on multiple fronts, proving that the entertainment giant isnât infallible. Thereâs political wrangling (clashes with Floridaâs Ron DeSantis), financial stress (costs of streaming services), and creativity problems (disappointing box office performance).
Perhaps the biggest worry is leadership. Veteran CEO Bob Iger was suddenly reappointed last November after the Disney board ousted Bob Chapek, who was hand picked by Iger as his successor. Confused by the turn of events? Many Disney shareholders are baffled too.
This excellent short film by the Financial Times offers a snapshot of Disneyâs meteoric rise under Iger, and explains what could be next for the iconic brand.
Thanks for reading! Take care and stay curious, Sara x