With writers strike, studios face a high-stakes endurance test
LOS ANGELES — Striking writers swarming picket lines say big media companies have made billions in profits from the movies and TV shows they have created — and it's time for those firms to share the wealth.
Traditional media companies, meanwhile, have lost billions of dollars building streaming services to compete with Netflix, and they say they must cut program expenses, not increase them.
Conflicting narratives, yet both may be true.
"We are in a golden age of spending on television," Neil Begley, a Moody's Investors Service senior vice president, said Thursday. "But we're in a 'lead age' for profits. Traditional media companies are facing a new reality, and they're having a tough time adjusting."
— the first since the 2007-2008 walkout that lasted 100 days — is unfolding against a larger backdrop of entertainment industry
