Paul Sweeting of Content Agenda writes: Warner Bros. just became the latest studio to announce cut backs, unveiling plans to eliminate 800 jobs, about 10% of its global workforce, through layoffs, attrition and outsourcing. The move follows similar cut backs at Paramount Pictures and NBC Universal, as well as earlier downsizing moves by Warner Bros. parent Time Warner. In a memo to staffers announcing the cuts, Warner Bros. toppers Barry Meyer and Alan Horn called the decision painful but necessary.
Where is the audience going? It's playing video games.
While the studios certainly need to get their fiscals houses in order, I'm not sure the long term trend is really reversible. For better or worse, interactive entertainment is becoming the dominant form of entertainment in the U.S. and abroad, apart from live events and television, and commands an ever-growing slice of the (shrinking) consumer leisure dollar.
That's not something the studios can cut their way out of.