S&P Global – Media and Entertainment Credit Outlook, 2025

The report by S&P Global "Media and Entertainment Credit Outlook 2025" explores the evolving credit landscape for media and entertainment companies amidst digital transformation and secular trends. Streaming has reached profitability, with several legacy media companies achieving success in this area. However, secular advertising trends present challenges, particularly with declining U.S. linear TV advertising. Despite these challenges, content remains crucial, although programming spend was reduced following the 2023 Hollywood strikes. Key assumptions for 2025 include continued growth in streaming profitability and global advertising, although spending will resume at a more modest pace. Risks include worsening declines in linear TV, failure to scale streaming services, and potential macroeconomic shocks affecting consumer spending. While digital platforms have democratized content distribution, legacy media companies face challenges due to reduced distribution fees. Overall, the sector faces ongoing secular pressures, but there are opportunities for growth in digitally-focused media platforms.