Darcy explains why the old media playbook is dead in Hollywood and who’s writing the new one.
This story originally appeared in Boardroom’s Spring Issue print magazine and has been adapted for online publication.
The traditional media business is in the midst of a once-in-a-generation transforÂmational moment. Hollywood is being disÂrupted. Newsrooms are struggling. What everyone thought they knew about the business, both on the financial and editoriÂal sides, is being called into question. MeanÂwhile, as anxiety ripples through legacy media, independent media is on the rise.
In Hollywood, the problem is front and center. The streaming wars, spurred by Netflix‘s rise, have upended once-towerÂing studios. In an attempt to catch up, legÂacy players poured billions into their own stand-alone streamers, only to discover that they simply don’t have the necessary scale to compete with Netflix, which has run far away from the pack, thanks in large part to its huge head start. While Wall Street was once patient, investors no longer want to see red on the books. So now, instead of boastÂing about content spend, studios are slashing budgets while viewing consolidation as the only viable path forward — even though that may, quite frankly, not even be enough.
The creative side is struggling too. Original films are having a difficult time breaking through at the box office, with audiences far more selective about what they’ll leave the comfort of their couch to see. Big-budÂget action and superhero films still draw crowds, but even they aren’t a sure thing anymore. How much more can Disney reÂalistically extract from Marvel and Star Wars? Both franchises are showing signs of audience fatigue. And if those engines fail, what replaces them?
The news business is facing its own moÂment of reckoning. Cable news is in rapid decline as millions cut the cord each year. Print newspapers are outright collapsing across the country. And many digital outÂlets are also under immense pressure, with the bulk of advertising revenue now flowing to Google and Meta. Subscriptions have emerged as the only reliable source of reveÂnue for many news organizations, pushing nearly everyone toward a premium-conÂtent strategy. But not all will succeed. And even for those that do, subscription revenue is unlikely to replace what major television news outlets are set to lose in carriage fees and advertising.
All of that, of course, is unfolding as Donald Trump continues his unrelenting assault on the press, forcing newsrooms to once again play defense at a moment when they are financially and institutionally at their weakest.
There is, however, a bright spot. Amid all the turmoil, independent media is thriving. YouTube creators, podcasters, and newsletter writers are building direct relationÂships with their audiences, free of much of the bureaucracy that slows traditional institutions down. The modern web has also provided the infrastructure to accept online payments and distribute content at scale. Indeed, a lean team-or even a sinÂgle person-can now build a strong media business through subscriptions and premiÂum sponsorships, all without the overhead legacy companies carry.
Of course, that is not to say that traditionÂal media is finished. Big investigations still require the resources only a well-estabÂlished newsoom can offer. A YouTube creÂator, even armed with AI, cannot yet make the next Avengers. Institutions still very much matter — and while they may shrink, it’s hard to imagine they’ll ever entirely go away. But they will need to adapt, and it’s all but certain that the media ecosystem of tomorrow will look a lot different than the one of yesterday.
Read More:
The Non-Fiction Hitmaker: Patrick Radden Keefe on “London Falling” and the Business of Hollywood Adaptations
EXCLUSIVE: Jesser Taps Former Adidas GM Eric Wise to Power Bucketsquad Growth
Book Excerpt: David Grutman’s Prince Play Is Bigger Than Tennis
The Career Pivot Angel McCoughtry Never Saw Coming
Pete Crow-Armstrong on His New Balance Deal, Building a Brand You Can’t Predict
