No Mercy / No Malice: Media Consolidation

Worker Struggles

The media industry is undergoing significant disruption, impacting workers across various sectors. George Hahn highlights the struggles faced by actors and writers, noting that many are now working for minimum guild wages, with actors' median hourly wages declining by 56% since 2013 1. This shift is largely driven by companies like Netflix, which have reshaped the industry by reducing production costs and transferring value to shareholders and subscribers.

Industry workers have no means of defense because they've never encountered this species or technology before. The result is an atmosphere of anxiety and fear. These emotions are common sense.

--- George Hahn

The uneven distribution of prosperity in the media landscape has left many industry workers without adequate financial security, with 86% of SAG-AFTRA members earning less than $26,000 last year 1.

   

Investor Strategies

Investors are navigating the shifting media landscape by focusing on distressed assets and strategic cost-cutting. George Hahn shares insights from his investment experience, emphasizing that distressed assets can be lucrative if acquired cheaply and managed efficiently 2. By cutting costs faster than revenue declines, investors can generate increasing cash flows even from aging media assets like cable networks.

Distressed assets can be great businesses as they can be bought on sale and typically don't go away as quickly as people believe they will.

--- George Hahn

In the podcasting and creator economy, talent is the key asset, contrasting with traditional media where platforms hold more value. This shift allows individual podcasters to command a greater share of revenue, highlighting the changing dynamics of media investment 2.