Tag: Netflix

Disney Lays Off 7,000 as Streaming Services Tank

Disney Lays Off 7,000 as streaming services tank
Disney Stock News Today: Disney Lays Off 7,000 as streaming services tank.

Disney is planning to lay off 7,000 workers to cut costs across the company. CEO Bob Iger announced the news in an earnings call on Wednesday, stating that the move is “necessary to address the challenges we’re facing today.”

Like many other companies across the country, Disney’s making the changes as part of its efforts to reduce costs in a “challenging economic environment.”

Iger says he’s “targeting $5.5 billion of cost savings across the company” and that the layoffs will “help achieve this.”

Iger didn’t say which departments the layoffs will affect.

Iger still has his sights set on streaming despite a slowdown in subscriber growth. 

Disney Plus added just 200,000 subscribers in the US and Canada for a total of 46.6 million, while its international offering (excluding HotStar) saw the addition of 1.2 million members.

Hulu and ESPN Plus had similarly slow growth, with each adding 800,000 and 600,000, respectively.

It seems streaming services aren’t what Wall Street believed it was going to be.

AMC Entertainment CEO Adam Aron recently praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

$1.5 Billion in Losses

Disney’s direct-to-consumer division, which includes its streaming services, saw a 13 percent increase in revenue to $5.3 billion.

But it still had an operating loss of around $1.1 billion, which the company attributed to higher costs at Disney Plus and Hulu.

The company’s streaming business lost around $1.5 billion last quarter.

“Our priority is the enduring growth and profitability of our streaming business,” Iger says.

“Our current forecasts indicate Disney Plus will hit profitability by the end of fiscal 2024 and achieving that remains our goal.”

Disney Stock Price Today.
Disney Stock Price Today.

Shares of the company remained unchanged, in fact, The Walt Disney Company (NYSE:DIS) shares rose 0.13% on Wednesday and another 5.42% after hours.

Related: Goldman Says Bigger Short Squeezes Coming Since Meme Stock Frenzy

The Rise of the Movie Theatre Industry is Here

AMC Entertainment News
AMC Entertainment vs online streaming platforms.

As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.

“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source: Variety.

In recent news, Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

Sorry, Charles Gasparino.

“The streaming business, which I believe is the future and has been growing, is not delivering basically the kind of profitability or bottom line results that the linear business delivered for us over a few decades,” Iger said.

In the interim, Disney hopes to cushion that short fall by continuing to rely on traditional forms of distribution, releasing movies on the big screen, where it recently scored blockbuster successes with “Avatar: The Way of Water” and “Black Panther: Wakanda Forever”.

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Market News Today - Disney Stock News | Disney lays off 7,000 employees.
Market News Today – Disney Stock News | Disney lays off 7,000 employees.

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Netflix’s Showing in Theatres Could Have Made $200 Million!

Netflix showing in theatres could have made $200 million
Market News: Netflix misses out on hundreds of millions of dollars for only streaming in movie theatres for a week.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy. 

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.

Why The Movie Theatre Industry Is Essential for Films

“With a traditional wide release, premium screen spread, and full marketing campaign, I think ‘Glass Onion’ could have generated at least $50 million to $60 million to lead the entire market,” said Shawn Robbins, chief analyst at BoxOffice.com.

In 2019, “Knives Out” snared $312 million globally on a budget of just $40 million.

The first film’s performance at the box office has provoked questions about why Netflix has limited the release of “Glass Onion” to just one week in a limited number of theaters.

After all, the streamer reportedly shelled out $400 million for the rights to two sequels, OUCH.

Box office analysts predicted the film could have hauled in more than $200 million in ticket sales before the end of its run if it had been given a wider global release.

“This is exactly the kind of movie adults want to see in theaters right now,” said Robbins.

“The family element made ‘Knives Out’ a perfect Thanksgiving release for audiences across the country three years ago. Daniel Craig’s return as Benoit Blanc, Rian Johnson’s sharp storytelling, and another round of positive reviews for ‘Glass Onion’ are building on the excellent goodwill from the prior film as this semi-sequel reaps some rewards, but it arguably could have achieved even more.”

Streaming Didn’t Kill Movie Theatres

Despite what Wall Street and media personalities such as Charles Gasparino argue for, streaming did not kill the movie theatre industry.

In fact, this proves companies such as Netflix need movie theaters to thrive.

What’s stopping the movie theatre industry from fully thriving is the lack of movie titles.

This is why Amazon CEO Jeff Bezos is investing more than $1 billion per year in the movie theater industry.

Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.

This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

Amazon is still sorting out this strategy said people who asked not to be identified.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

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AMC Announces First Ever Netflix Showing in 200 Theatres

AMC Netflix
Market News: AMC Netflix News.

AMC Entertainment just announced it will be showing its first ever Netflix movie across 200 movie theatres in the U.S and Europe.

Glass Onion: A Knives Out Mystery starring Daniel Craig will be released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix movies at AMC.

The notion that online streaming and movie theatres were competing it out no longer seem valid as these two companies start a new collaboration.

Will this change institutional investor sentiment?

Let’s discuss it!

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Statement from CEO Adam Aron

AMC Netflix Deal
Official Statement | AMC Netflix Deal.

Adam Aron, AMC Chairman and CEO, commented the following:
“This announcement of our first-ever agreement with Netflix is significant for AMC and for movie lovers around the world.

As we have often said, we believe that both theatrical exhibitors and streamers can continue to co-exist successfully.

Beyond that, though, it has been our desire that we find a way to crack the code and synergistically work together.

By doing so, theatres will make more money by having more titles to show, and thanks to the larger cultural resonance those movies can gain from a theatrical release, they will wind up playing to a wider audience when they also are viewed on streaming platforms.

Accordingly, we also have long said that we would welcome Netflix movies in our theatres with the proper agreements in place.

This agreement that we have reached with Netflix for GLASS ONION: A KNIVES OUT MYSTERY is acceptable to AMC as it sufficiently respects the sanctity of our current theatrical window policy.

We are hopeful that a successful screening in our theatres this Thanksgiving will lead to more co-operation between Netflix and AMC in the months and years ahead.”

Continued

“Rian Johnson’s original KNIVES OUT was a wonderful film that delighted audiences in the United States and around the world, and was a real hit in our theatres.

It’s only fitting that its follow-up, GLASS ONION: A KNIVES OUT MYSTERY, which also stars Daniel Craig and which is already garnering high praise from critics, will be available at more than 200 of our AMC locations around the country this Thanksgiving holiday weekend.

Given the global appeal of the first movie, we are also excited to announce that it will be available at many of our Odeon locations in Europe as well.

We look forward to GLASS ONION: A KNIVES OUT MYSTERY, and we will endeavor to continue working with Netflix on future compelling titles that excite and engage theatrical audiences.”

Critics Stay Silent on the AMC-Netflix Collaboration

AMC Netflix News
AMC Netflix News | AMC Netflix deal | AMC Netflix buyout?

AMC critic Charles Gasparino so far has had no comment in regard to the AMC-Netflix collaboration.

The Fox Business personality has long prophesized the demise of movie theatres would be due to the popularity of online streaming services.

However, the AMC news comes as a big contradiction to what the television announcer has preached to retail investors.

AMC Entertainment recently announced it would be selling up to 425 million shares of APE to pay down their debt.

This will put the movie theatre chain at a significantly better fundamental state as a company.

Is AMC Entertainment proving it’s no longer a screaming short?

What do you think?

Leave your thoughts in the comment section of the blog down below.

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