7 Provocative Trends that could Shape Hollywood's Future in 2024
2023 has come to an end, marking a year of both new and recurring challenges for Hollywood. The aftermath of writers and actors strikes is expected to continue affecting the film industry and company finances in 2024. Simultaneously, discussions about deals are anticipated to remain a topic of interest among Wall Street and Hollywood circles. Key issues such as the influence of AI on business operations, the uncertainties in the advertising market, cord-cutting trends, and the journey towards profitability in streaming services are likely to be at the forefront of entertainment executives' concerns. Here are some of the most striking predictions for Hollywood in 2024 from the Hollywood Reporter, as per industry analysts and experts: TikTok Challenging Netflix : Peter Csathy from Creative Media predicts that TikTok's focus on longer-form content will start to encroach on Netflix’s audience. Despite legal challenges, the app's growing dominance is expected to impact the traditional 'Netflix and chill' habit. Streamlining Streaming Budgets : Csathy also forecasts that streaming content budgets will become more grounded, moving away from the era of extravagant spending. Major streaming services, including Netflix, will aim to achieve more with less content. The "Barbie Effect" on Streaming : Csathy points out a shift towards evergreen, reprogrammable franchise content, citing Disney's success with its major franchises. He also anticipates Netflix and other tech-first streamers to experiment with AI for cost reduction and content creation. Mergers and Acquisitions (M&A) Not a Panacea : Analyst Rich Greenfield of LightShed Partners doubts that M&A will solve the streaming challenges of media companies. He highlights that traditional media companies are lagging in building globally scaled streaming services. Financial Pressures on Video Streaming : Kenneth Leon from CFRA Research suggests that 2024 might be critical for financially struggling streaming providers. Top-tier services are expected to gain more market share, while second-tier services may face challenges in achieving profitability. Changing Algorithm Dynamics : Mark Mulligan from MIDiA Research predicts that users will feel that algorithms are no longer catering to their preferences but rather to the platforms' monetization goals. This shift could lead to user dissatisfaction and opportunities for new, user-focused platforms. Regulation of AI in the U.S. : Csathy forecasts that the U.S. will follow the EU in implementing regulations for AI. These regulations might include transparency measures and protection against unauthorized use of names and likenesses.