zlacker

This is the strategy for all companies that have lots of risk in their business. The media industry has a lot of risk. Too many failed projects can sink a studio. The only way to guard is to increase in scale across different types of media and channels so your environment is diversified

It’s no different from vail buying up all the ski resorts because they have such global reach they can diversify income streams across a wider set of mountains that have variable quality in winter and there for one bad winter doesn’t sink the whole business because they own so many - the ones that have a good year offset the ones that have a bad one

Same thing with media. A wider range of projects from a wider range of talent increases the chances of discovering the next hit show or gold mine movie property and offsetting all the projects that fail.

The other thing to remember is bigger companies turn slower and adapt to disruption slower. So it also opens up an opportunity in 5-10 to disrupt.