✔️ 2022-05-09 09:00:00 – Paris/France.
The rout in streaming media stocks this year may have surprised many on Wall Street, but IMAX (IMAX) CEO Rich Gelfond is not one of them.
Asked on Yahoo Finance Live (video above) if he was surprised the market was questioning the giants' business models Streaming, the entertainment industry veteran replied, "I'm not at all," later adding that "ultimately the model of the Streaming [for new blockbuster movies] didn't make sense. Theatrical showcase, especially IMAX, creates a buzz around a property and creates a cultural event on a global scale. And to think that you could do that and create that kind of excitement without a theatrical release was silly. »
Box office pros like Gelfond say the impressive opening weekend of Disney's new 'Doctor Strange' could signal a robust summer for theaters as consumers feel more comfortable with the COVID-19 pandemic. The summer lineup looks bankable with major budget cuts such as "Top Gun," "Jurassic Park," and "Black Adam" coming soon.
"Actually," Gelfond added, "one of the main streamers just told me... that in Streaming, things are going better with an exclusive theatrical release. So forget about the money you make with the halls window, just on the Streaming, more subscribers, more attention, all things like that – because the theatrical experience really creates an event, especially the IMAX experience. »
"Doctor Strange 2" (screenshot)
Market sentiment for streaming media stocks, meanwhile, has changed markedly this year.
Netflix (NFLX) saw a slight drop in subscriber numbers in the first quarter as some consumers balked at recent price increases and others snuck out of the house as the pandemic turned the corner.
For the current quarter, Netflix said he expected an even steeper drop in new users.
The service of Streaming forecast a drop of 2 million subscribers in the second fiscal quarter, while consensus analysts were looking for a gain of 2,4 million.
The story continues
The actions of Netflix are now down 70% since the start of the year.
« Netflix is a growth company, but more of a premium growth company,” veteran technology analyst Mark Mahaney at Evercore ISI recently said on Yahoo Finance Live.
The wrecking ball also found its way to the platform of Streaming Year.
Roku (ROKU) saw its adjusted operating profits drop 54% year over year in the first quarter, while the number of active accounts remained relatively stable quarter over quarter at 61,3, XNUMX million.
Roku shares have fallen 60,5% since the start of the year.
Even Paramount Global (PARA) has not been immune to selling pressure, despite having one of the best quarters in the space. Streaming to start the year.
Paramount shares are down 9% on the year so far.
Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and LinkedIn.
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SOURCE: Reviews News
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