What I have been pondering is the next phase of downward pressure on entertainment services. Gaming, streaming, etc. are big budget items for half the country. Think back to our early adulthood. No cable bills, no cell phone bills, no Netflix, Hulu, Xbox, etc. bills. Those are all deemed top priority items to pay – will that continue?
During the 1970s, a Los Angeles baker by the name of Wally Amos held a Hollywood style opening, with giant movie spotlights shining into the night sky for miles. His opening was for an incredible luxurious ... cookie 🍪. Wally realized that people were downgrading not from steak to hamburger, but from hamburger to hamburger helper. People needed a little something special in their lives in spite of the belt tightening and so Wally’s Famous Amos cookies were a huge success, inspite of being an extravagance during a recession.
People always crave entertainment or escape from their day to day and I don’t see that being cut.
But I do see a reduction of services subscribed to and at least one major service going bankrupt or being acquired. Quibi is probably going to suffer one or the other fate in the next 12 months. Netflix and Prime are probably safe based on their extensive libraries and deep pockets. Hulu feels old and even with their “FX on Hulu” deal they still have a ridiculously weak library compared to Netflix. I also can see a lot of cancellations of premium cable services like HBO if they run out of new episodes for their current series. Or will they steal new series from HBO Max to keep the cable service relevant?