In the wake of a turbulent year for the entertainment industry, veteran industry exec David Madden believes that there is still a long road ahead for the business to regain its stability. As the Global Head of Entertainment for Wattpad Webtoon Studios, Madden shared his insights at a Content London event, highlighting the cautious approach of some buyers to budgeting for the upcoming years. This hesitancy is a result of several factors, including the impact of writers strikes, a downturn in the TV ad market, and the shift of streamers towards profit-oriented business models. Companies are still grappling with the fallout from various industry challenges, leaving them uncertain about future investment decisions.
Madden pointed out Disney as one buyer that remains unsure about its spending strategy, describing them as “fragile” when it comes to making financial commitments. However, he acknowledged that other companies have taken a more aggressive stance. While the current state of the market is not as dire as it could have been, Madden estimates that it is only operating at about 60% capacity. He forecasts that a full recovery to pre-pandemic levels will not be achieved until the beginning of the next year.
Unlike many other players in the industry, Wattpad Webtoon Studios weathered the storms of the entertainment landscape relatively well. The studio’s significant animation business allowed its executives to continue operating amidst the writers strikes, as they could collaborate with animation writers who were developing projects rather than crossing picket lines. Additionally, Wattpad Webtoon Studios’s unique business model, which permits writers to publish on their platforms, ensured that the company had an extensive repository of stories to offer, even from lesser-known talents and agencies. As a result, the studio was able to forge partnerships with remarkable collaborators over the past few months.
Wattpad Webtoon Studios, owned by Korean conglomerate Naver, has been actively seeking exciting projects for “hungry” writers who emerged from the Writers Guild of America (WGA) action. These writers, eager to secure attractive opportunities quickly, have found a home at Wattpad Webtoon Studios. The studio’s access to data and analytics from its content platforms has also proven invaluable in closing agreements with potential partners.
During the interview, Madden shed light on the preferences of streaming giants such as Netflix and Prime Video. These platforms have indicated their interest in “broadcast-plus” projects—titles that enhance basic mainstream premises through superior scripting, visuals, or other production elements. This inclination towards elevated content presents an opportunity for creatives to provide unique and captivating storytelling experiences that resonate with audiences seeking more than conventional narratives.
David Madden’s assessment of the current state of the entertainment industry emphasizes the challenges it must overcome while also highlighting the resilient nature of certain companies, such as Wattpad Webtoon Studios. The industry’s recovery will require understanding the evolving needs of buyers and streamers, and actively seeking out innovative projects that push the boundaries of traditional storytelling. By capitalizing on these opportunities and leveraging data-driven insights, the entertainment industry can navigate its way back to a vibrant and thriving future.