The aftermath of Hollywood strikes brings a hopeful outlook for streaming services.
- Zoo Digital foresees a recovery in the streaming market by late 2025.
- Hollywood strikes in 2023 significantly impacted revenues for media services.
- Zoo Digital projects an increase in sales amid changing industry dynamics.
- Strategic realignments may benefit Zoo Digital and its major customers.
Zoo Digital has expressed optimism for a rebound in the streaming market following last year’s disruptive Hollywood strikes. Based in Sheffield, the company provides media services to streaming companies and has observed signs of market recovery, anticipating this positive trend to continue well into late 2025.
In an announcement to investors on the London Stock Exchange, Zoo Digital reported an expected sales figure of at least $27 million (£20.2 million) for the first half of its 2025 financial year—marking a 28% increase from the same period the previous year and a 42% rise from the last half-year.
Gillian Wilmot, chairman of Zoo Digital, noted the evolving landscape of the streaming industry post-2023 strikes. She stated, “The streaming industry continues its transition following strategic realignments and the strikes of 2023.” US media organisations have embarked on adjusting their strategies, aiming for a future less reliant on traditional linear television.
The accounts published by Zoo Digital highlighted the detrimental impact of the strikes. The firm’s revenues fell sharply to $40.6 million (£31.2 million), resulting in an operating loss of $19.1 million (£14.7 million) for the year ending March. However, the company expects its earnings before interest, taxes, depreciation, and amortization (Ebitda) to return to profitability in the first half of 2025.
Ms. Wilmot expressed confidence in the company’s prospects due to various strategic shifts by its major clients. These shifts include a move towards an end-to-end approach with fewer suppliers, a more diverse range of international content focusing on episodic series over feature films, and increased reliance on Zoo Digital’s software platforms.
Additionally, Zoo Digital is carefully managing its financial resources while maintaining production capacity to meet customer demand, with an anticipated unaudited cash balance exceeding $2 million by September 30, 2024. The company’s visibility extends to January 2025—typical for their business—yet the board remains optimistic about meeting market expectations for the full fiscal year ending March 31, 2025.
The release of Zoo Digital’s unaudited interim financial results for the six months concluding September 2024 is scheduled for November, which will further illuminate the company’s financial recovery and strategic direction.
With strategic realignments and industry recovery underway, Zoo Digital is poised to regain its momentum in the streaming market.
