Music startup Utopia just announced a series of layoffspart of a much larger dynamic that could reshape the entertainment landscape.
There are many reasons why the impending global recession will be unique, but the most relevant one for the digital entertainment industry is that it will be the first since modern consumer technology truly became mainstream. This is important, not only because of the uncharted territory it reflects, but also because technology companies (even large ones) operate differently than traditional ones, betting much more on future growth.
A strategy that works well in times of plenty, but undergoes rapid reevaluation in the face of an impending recession. Big tech companies are downsizing, especially in bets that they expect to make a profit in the future, but not yet. Most forms of digital entertainment fall into this category.
Full point of view in English by by Mark Mulligan for MIDIA: http://bit.ly/3Vu04YZ
