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Hollywood's Theatrical Business At Risk Of Entering "Negative Feedback Loop", Wall Street Analyst Warns

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Hollywood is at risk of entering a "negative feedback loop" with fewer wide movie releases and a shrinking theater footprint combining to squeeze box office revenue, a veteran media analyst says. In his annual assessment of the theatrical sector,
The article discusses concerns raised by Wall Street analyst Eric Handler from Roth MKM about the future of Hollywood's theatrical business. Handler warns that the industry might be entering a "negative feedback loop" due to several factors including the ongoing strikes by the Writers Guild of America (WGA) and the Screen Actors Guild (SAG-AFTRA), which have halted production and could lead to a content drought. This situation is compounded by the shift towards streaming services, which has already reduced the number of theatrical releases. The lack of new content could further decrease theater attendance, leading to fewer screens, which in turn would make it less appealing for studios to invest in theatrical releases. Handler suggests that this cycle could be detrimental to the traditional movie theater model, potentially pushing more content directly to streaming platforms.

Read the Full Deadline Article at:
[ https://www.msn.com/en-us/money/companies/hollywood-s-theatrical-business-at-risk-of-entering-negative-feedback-loop-wall-street-analyst-warns/ar-AA1BIfGA ]