TV’s Streaming Bubble Has Burst, Writers Are Striking, and “Everybody Is Freaking Out”

 

 

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To be fair, everybody is learning to curb their enthusiasm. “Wall Street changed the rules of the game,” says Marc Guggenheim, a veteran showrunner. Instead of chasing subscriber growth with great content, streamers are now directed to focus on profitability. “Overnight, all the streamers will suddenly be measured by a completely different yardstick that they weren’t built to meet.” Guggenheim compares the companies to a car speeding down a highway at 100 mph: “Suddenly they slam on the brakes and the car spends a little time skidding out of control. I picture Ted Sarandos white-knuckling the steering wheel going, ‘Okay, well that was fun. But let’s get the heart rate down now.’ ” 

The financial pressure on streamers has caused a parade of panic. “Everyone in the industry is freaking out, because things are getting cut left and right,” says a former studio executive. “What’s being cut big-time is development. And that’s where most of this town is. I’m working on a project. How often have you heard that?” It takes time and care to bring truly original shows into the world. “I’m worried about that pipeline—not just at HBO, but at Showtime, Hulu, FX, and others—getting their budgets cut as things get consolidated,” says the exec. “You get to a White Lotus because HBO nurtured Mike White and Enlightened. You get to an Everything Everywhere All at Once because A24 nurtured the Daniels.” 

Over the past few months, we talked to dozens of executives, writers, producers, crew members, actors, directors, and dealmakers, many of whom asked for anonymity, as people in Hollywood tend to do when they’re going to tell the truth. One award-winning showrunner thinks of the streaming revolution as an earthquake with a series of aftershocks. “And I guess the question really is: At the end of the quakes, are we going to be better off or worse off?” She lets out a ragged sigh. “It doesn’t look good.”  "

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