Shares of Paramount Global and Warner Bros. Discovery have experienced a decline, sparking concerns within the communications services industry. This downturn came as brokerage firm Wolfe Research downgraded their ratings on the streaming services, cautioning about an impending decrease in advertising revenue.
Twitter Takes Legal Action against Law Firm
In another notable development, Twitter has initiated legal proceedings against Wachtell, Lipton, Rosen & Katz, the law firm that previously represented the company’s interests in a legal case. The lawsuit alleges a breach of fiduciary duty on the law firm’s part, relating to their involvement in pushing for Elon Musk to fulfill his commitment to take over the platform. Twitter seeks restitution for a $90 million payment that was made.
Promising Growth Ahead for the Music Industry
Despite the challenging landscape, analysts at brokerage firm Goldman Sachs remain optimistic about the music industry’s future. They predict strong growth in 2023, primarily driven by advancements in artificial intelligence, the reduction of fraudulent activities within streaming services, and price hikes. This positive outlook is supported by Goldman Sachs’ belief in improved monetization through structured and recurring price increases, targeting superfans, and better payment terms with emerging platforms.
