Major entertainment studios are pinning their streaming success on tiered advertising platforms – and the tech industry is showing warning signs
Hollywood is expected to be very nervous about Facebook’s first-ever second-quarter revenue drop on Wednesday, a painful benchmark prompted by a sharp decline in ad sales as the economy teeters toward a recession.
And studio heads should be really nervous about the social media giant’s warning on Wednesday that revenue through September will decline even further, somewhere in the $26-28.5 billion range, missing the $30 billion-plus that Wall Street foresaw. There’s a confluence of reasons: consumers are in belt-tightening mode, companies are reining in advertising spend, and a strong dollar has eroded the value of overseas sales.
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