PRO Tip Sheet: 5 Insights from WrapPRO

This week on WrapPRO [Save 33% on an annual subscription](and join the ranks of high-powered industry leaders who read WrapPRO every day. Want unlimited access to in-depth reporting, analysis, and industry data?[Save $50 on WrapPRO using promo code Wrap33](and upgrade to a subscription today. 5 Insights From WrapPRO This week, WrapPRO totaled up media execs' 2022 pay haul, looked at how the writers' strike is reshaping the debate about AI in entertainment, considered what tech's strong first quarter might mean for the streaming wars and examined Disney CEO Bob Iger's about-face on Hulu. Read on for the ultimate cheat sheet on the week in Hollywood. [Read More on WrapPRO]( 1. [The Hollywood Writers’ Strike May Actually Be Aiding AI’s Takeover]( By Robert Carnevale | Source: [WrapPRO]( The ongoing writers' strike in Hollywood is potentially accelerating the adoption of AI in the writing process, causing concerns for writers who fear job displacement. Studios see AI as a cost-effective and efficient solution, with large companies like Disney and Paramount already implementing AI for various processes. As the strike prolongs, AI systems such as ChatGPT could become an attractive alternative for studio executives in need of scripts. Despite fears of AI's impact on the creative process, some experts and industry professionals see AI as a potential tool rather than a threat, that could help increase productivity and streamline aspects of the writing process. They suggest that the creative input from humans will still be a crucial part of the process. However, as AI continues to evolve, the entertainment industry may have to adapt and reconfigure roles and job descriptions to accommodate this technological shift. 2. [2023 Tech Earnings So Far: What They Mean for Streamers]( By Robert Carnevale | Source: [WrapPRO]( Despite the volatile economic climate and major layoffs across the tech sector in 2023, leading tech companies like Apple, Microsoft and Amazon have shown robust financial performance. Their cash-rich status enables them to continue heavy investment in entertainment and gaming sectors, posing a significant threat to Hollywood studios' ambitions for streaming service profitability. The next major frontiers in streaming are expected to be live sports and theatrical film releases. Tech companies like Amazon and Apple are projected to invest around $1 billion each in films destined for theaters, impacting traditional studios competing for box office revenue. In the realm of live sports, licensing rights could become a significant competitive arena, as illustrated by YouTube TV's acquisition of NFL Sunday Ticket rights. 3. [Exclusive: Consumers Wary of Studios' Use of AI in Film and TV Scripts, Survey Finds]( By Lucas Manfredi | Source: [WrapPRO]( Amid the writers' strike, a survey conducted by NRG reveals a widespread concern over the use of artificial intelligence (AI) in scriptwriting. While there's considerable misunderstanding about the strike's reasons among consumers, over two-thirds of respondents expressed apprehension about AI's deployment in Hollywood. Importantly, a potential backlash may arise if studios are perceived to be using AI as a workaround during the strike. 4. [What Every Major Hollywood Chief Executive Got Paid in 2022]( By Lucas Manfredi | Source: [WrapPRO]( Despite a difficult year for the entertainment industry marked by falling stock prices, some top executives received significant pay increases in 2022. Notably, Netflix's Reed Hastings and Ted Sarandos brought in $51.1 million and $50.3 million respectively, both showing an increase from their 2021 earnings. Similarly, Paramount Global CEO Bob Bakish's total compensation for 2022 was $32 million, a significant increase from $20 million in 2021. The significant disparity between falling company stock prices and rising executive salaries could indicate a disconnect between executive compensation and company performance. For instance, despite the falling stock prices of Netflix (51%), Comcast (30%), and Disney (43.9%), their executives saw pay increases. This trend might invite further scrutiny from stakeholders and could potentially affect investor sentiment. 5. [Why Disney CEO Bob Iger Has Done a 180 on Buying Hulu | Analysis]( By Lucas Manfredi | Source: [WrapPRO]( The potential merging of Disney+ and Hulu can be beneficial from both a marketing and content strategy perspective. The move could help Disney streamline costs amid pressure to cut expenses, as it may yield significant cost savings and improve user experience, ad sales and subscriber retention. Speculation surrounds potential future moves and impacts, such as Comcast selling its Hulu stake to Disney, creating a multi-billion-dollar cash infusion for the former. An existing 2019 agreement stipulates that either company can force the sale of the stake for a minimum of $9 billion. Some analysts suggest that the integration strategy may also be connected to Disney's succession planning, hinting that Dana Walden, a co-head of Disney Entertainment, might be next in line for CEO. With a focus on delivering actionable intelligence, the PRO Tip Sheet empowers readers to stay ahead of the game in the industry. Want to go deeper? Subscribe to WrapPRO today. [SUBSCRIBE TODAY]( TheWrap | 2034 Armacost Ave Los Angeles, CA 90025 [Unsubscribe](