The entertainment industry has faced numerous challenges in recent months, leaving industry executives uncertain about the future. David Madden, Global Head of Entertainment for Wattpad Webtoon Studios, believes that the industry still has a long way to go before it fully recovers. Speaking at a Content London event, Madden expressed his concerns about buyer apprehension and budget constraints, which have been influenced by various factors such as the writers strikes, the downturn in TV advertising, and the shift towards profit-focused business models by streaming platforms.
According to Madden, many buyers in the entertainment industry are still “skittish and awkward” when it comes to budgeting for the coming years. The constant barrage of negative news reports throughout the past year has left companies reeling and unsure about where to invest their resources. He specifically highlighted Disney as one buyer that is particularly fragile and cautious about spending. However, Madden also noted that some buyers have taken a more aggressive approach in adapting to the changing landscape.
Madden cautiously stated that the market is approximately 60% back to normalcy but believes it won’t be until the beginning of next year that it will fully recover. The industry has made progress in bouncing back from its lowest point, but there is still a long way to go. Despite this, Madden remains optimistic about the future and believes that the industry will eventually regain its strength.
Wattpad Webtoon Studios has managed to weather the storm better than most due to its major animation business. While the strikes had a significant impact on other companies, Wattpad Webtoon Studios was able to continue working with animators and writers by focusing on animation development. Additionally, Wattpad Webtoon Studios’ unique business model, which allows writers to publish on their platforms, has provided them with a vast repository of stories outside of the traditional talent agencies. This has allowed them to collaborate with a diverse range of partners and bring their unique projects to fruition.
Over the past few months, Wattpad Webtoon Studios has forged successful partnerships that have led to exciting projects. These include a feature adaptation of Isabelle Ronin’s YA novel, Chasing Red, with Stampede Ventures, an adaptation of the comic Love Advice from the Great Duke of Hell with Ron Howard and Brian Grazer’s Imagine Entertainment, and Sigue Mi Voz, a feature version of Ariana Godoy’s web novel. These collaborations have showcased Wattpad Webtoon Studios’ ability to attract talented writers who are hungry for new opportunities.
Wattpad Webtoon Studios has also leveraged its extensive data and analytics capabilities to secure agreements and close deals. The insights gained from their content platforms have been instrumental in determining market trends and identifying projects that align with audience preferences. This data-driven approach has helped Wattpad Webtoon Studios stay ahead of the curve and make informed decisions.
Madden revealed that streaming giants like Netflix and Prime Video are actively seeking “broadcast-plus” projects. These projects aim to elevate mainstream content through exceptional scripting, visuals, or other aspects of production. It reflects a shift towards creating high-quality content that resonates with audiences and sets streaming platforms apart from traditional broadcasters.
David Madden’s tenure at Wattpad Webtoon Studios has been marked by innovation and success. Since joining the company, he has brought a fresh perspective to the entertainment industry and spearheaded exciting new projects. With the backing of Korean giant Naver, Wattpad Webtoon Studios is poised for a promising future. The $100 million investment in development and production financing demonstrates their commitment to nurturing talented writers and bringing their stories to life.
The path to recovery for the entertainment industry remains challenging, with buyers remaining cautious and budget-constrained. However, companies like Wattpad Webtoon Studios continue to push boundaries and defy industry norms. With their unique business model, successful collaborations, and data-driven approach, Wattpad Webtoon Studios is paving the way for a brighter and more innovative future in the entertainment industry.