19 that it would have positive free cash flow in 2021 and would no longer have to incur debt to finance its day-to-day operations. After years of burning through cash as it sought to produce enough programming to build up its subscriber base, the company disclosed Jan. Netflix has given Hollywood’s legacy businesses a road map. “The single biggest question for 2021 is, ‘Who’s going to commit the capital to be big enough to matter?’ Netflix is going to spend $17.5 billion. “I would still call this day one for streaming,” says LightShed Partners analyst Rich Greenfield. Now, months into the biggest transformation that Hollywood has seen in decades, the entertainment conglomerates have shown that shoveling money into Netflix competitors can produce results, though it’s too early to know to what end. WarnerMedia, meanwhile, projected that it would record $2 billion in expenses in 2020 related to the launch of HBO Max. When Disney revealed plans to forgo licensing deals with Netflix as it prepped for the November 2019 launch of Disney+, it forecast that it would miss out on some $150 million in operating income on top of planned investments into technology and content for the service. The shift to streaming was always going to be expensive. The next day, NBCUniversal CEO Jeff Shell touted Peacock’s 33 million sign-ups but conceded that the 9-month-old streamer would lose $2 billion in 20. But the good news came with a caveat: $520 million in losses due to the ongoing shutdown of many theaters and subsequent hybrid release plan for the 2021 Warner Bros. 27 that the much-maligned plan to release its films in theaters and on HBO Max had helped to double the streamer’s audience to 17.2 million active users. After two months of fielding criticism from some of Hollywood’s top filmmakers, WarnerMedia executives finally had something to crow about when AT&T CEO John Stankey revealed Jan.
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