The Four Reasons Why Legacy Media is Struggling to Adjust
Darren Campo, Adjunct Professor at NYU Stern School of Business and SVP of Programming and Content Strategy at the Food Network, shares four reasons why giant legacy media companies are struggling to adjust to the modern media landscape. He points to decentralized competition from social media platforms, as well as exorbitant costs to build a streaming library of content.
Darren’s Thoughts:
There are four reasons why traditional media companies are having such a hard time adjusting to the current environment. The first one is that we are in an advertising recession. The second one is TikTok. The third: trillion-dollar competition from Amazon and Apple. And the fourth: it’s very expensive to build a successful streaming service.
Netflix pointed this out in their Q3 earnings release where they said they are the only profitable streaming service with five to 6 billion in operating profits compared to what they estimate is 10 billion in losses from traditional media companies. With Netflix having forecast that for the competitors just a few weeks ago, it’s not surprising to see it show up in their results right now.
