Why Experts Aren’t Worried About the Content Boom Slowing – Even if the Economy Does (Video)

thewrap.com:

he says — there’s a lot of anxiety,” Hodge said on Wednesday’s TheGrill panel “Merger Mania: Behind the Mega Deals in Media & Entertainment.

And that’s just a fact, we (are in) a global situation that’s unsettling. The stock market is down; media companies are down 40% and more.” However, Hodge — as well as others featured on the panel moderated by Creative Media Chairman Peter Csathy — said Hollywood is in a period of transition, not a free falI, and that includes mergers and acquisitions. “You have a company like Netflix, which was kind of leading the charge, that now has to transition from a single revenue stream business to a [multiple stream] business,” Hodge said. “And then you have the other media companies working on their streaming.

So there’s a lot of transition, but I think there’s an unbelievable amount of opportunity … you have a moment where audiences are more connected to content creators and advertisers than they ever had been.”A recent boom in M&A activity saw Hollywood saw AT&T sell WarnerMedia in a deal with Discovery; Amazon acquire MGM; and major talent agency CAA gobble ICM Partners to become one entity.

Panelist Carlos Jimenez, managing director of Moelis & Company investment bankers, said he is seeing some clients hesitating to jump into new M&A deals in light of a struggling economy, as well as Hollywood’s own slowdown in the streaming boom as evidenced by Netflix’ recent loss of subscribers.However, like Hodge, Jimenez suggests now may be the best time to seize the opportunity.