Wednesday, May 25, 2016

TV gold rush age

This article is talking about the current "gold rush" (my term) of TV production, which has seen new TV production companies, notably Amazon and Netflix, enter the market, investing big money in new shows and paying very high fees to famous film actors to join, thus driving up actor fees overall.

What I find interesting is that many quotes from actors and agents sound like they've just arrived in paradise, while showing no awareness of what seems obvious to me: this is temporary.

It's just like in the late nineties when you'd have money managers gloating about the new prosperity which would last forever, which it almost did, except for the dot-bomb at the millennium.

It's just obvious: if something expands extremely fast and it includes an entire market, it is temporary.  It's a bubble. I said so about the real estate market a couple of years before the bust in 2008. Where would the resources come from to continue such expansion without anything to expand into? I don't think these companies (barring maybe Amazon) have the money to continue these investments, it is simply that they are all fighting desperately for market share right now.

1 comment:

Joe Dick said...

The sooner the bubble bursts the better. It's not a golden age for quality.