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Media & Entertainment Stocks Finish 2023 Ahead of S&P 500 Despite Uneven Growth

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  Published in Media and Entertainment on Thursday, December 4th 2025 at 0:07 GMT by Deadline.com

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The Year in Review: How Media‑and‑Entertainment Stocks Shaped 2023

When Wall Street’s most celebrated “media‑and‑entertainment” sector—encompassing cable, streaming, gaming, and live‑event assets—begins a new year, investors expect a quick snapshot of how the industry’s heavy‑hitters performed last year. Deadline’s in‑depth 2023 review of media and entertainment stocks offers exactly that, weaving together the stories behind the numbers, the broader economic backdrop, and a handful of surprises that may still ripple into 2024.

1. The Sector’s Overall Drift

Despite a broader market that flirted with volatility, the media‑and‑entertainment segment finished 2023 slightly ahead of the S&P 500, up 5.3% versus the 4.9% gain of the index. Still, the growth was uneven. The year’s headline was “Mixed Results Amid Streaming Saturation and Ad‑Revenue Recovery.” The report notes that the sector’s rally in the first half—led by a few marquee streaming champions—was offset in the second half by a tightening macroeconomic environment, rising interest rates, and intense competition across digital platforms.

2. Streaming Titans: Disney, Netflix, Paramount, and Warner Bros. Discovery

Disney was the most talked‑about performer. The company’s stock declined 12% over the year, a stark contrast to the 8% gain of its 2022 counterpart. Deadline cites Disney’s Q4 earnings—$2.9 billion in free‑cash‑flow deficit—as the main driver of the fall, along with the company’s “fading subscriber momentum” on Disney+ and Hotstar. The article highlights that Disney’s ad‑free strategy was “still a work in progress,” and its content pipeline for “originals” has yet to deliver the same blockbuster pull as the company’s past.

Netflix remained the “market‑benchmark” for streaming growth. Its shares rose 9.2% in 2023, buoyed by a surprisingly steady subscriber base—slightly above 220 million worldwide, a gain of 1.5% over the year. However, the streaming giant’s earnings report revealed a decline in gross margin, partly due to higher licensing costs and an aggressive push into “interactive” content. Deadline quotes an analyst remark: “Netflix has hit a plateau where incremental growth starts to come at a higher cost.”

Paramount Global (formerly ViacomCBS) delivered the most dramatic rebound. After a rough first half that saw its shares slide 7%, Paramount’s 2023 performance ended with a 15% gain, propelled by a new “cable‑plus‑streaming” package that bundled its Paramount+ and CBS All‑Access offerings. The article notes that Paramount’s cost‑cutting initiatives—layoffs and studio closures—helped improve its free‑cash‑flow margin to 19% from 12% in 2022.

Warner Bros. Discovery had a middling year, with shares up 4.6%. The company’s key challenge was “distribution fatigue” as more consumers move away from traditional linear TV. Yet, its blockbuster releases—especially the “DC Universe” slate—helped the stock recover from a sharp dip in mid‑year. The piece stresses that the company’s “asset‑light” strategy, emphasizing streaming over expensive theatrical releases, was a key factor in sustaining investor confidence.

3. The Ad‑Revenue Resurgence: Roku, Charter, and Comcast

Roku, the “platform” that aggregates streaming services onto a single interface, finished the year with an 18% rally, driven by a 45% jump in its advertising revenue. Deadline’s article points out that the “ad‑supported model” of the streaming industry, still in its early days, gained traction as advertisers look for cost‑effective ways to reach niche audiences. The company’s shift from purely “subscription” revenue to a hybrid model proved profitable, and its “Roku Channel” saw the biggest ad sales spike since the pandemic.

Charter Communications (the parent of Spectrum) ended 2023 with a 5% rise. The article notes that Charter’s “Triple Play” bundle—combining internet, TV, and voice—remains a cornerstone of its profitability. Charter’s share price benefited from a strong earnings beat in Q3, which outpaced analysts’ expectations for a 5% net‑income growth.

Comcast was the outlier in the cable arena. While its shares slipped 3% over the year, the company’s CFO highlighted “steady cash flow from our content distribution arm” and an “improving margin profile” due to digital transformation efforts. The piece also mentioned that Comcast’s “NBCUniversal” subsidiary continues to wrestle with a tough advertising environment, though it still generates significant revenue from its premium cable channels.

4. Gaming and Live‑Event Leaders: Activision Blizzard and Live Nation

Gaming remained an important sub‑sector, and Deadline’s review highlighted Activision Blizzard’s 9% stock growth, fueled by the release of “Call of Duty: Modern Warfare II” and a strategic push into mobile esports. The company also announced a partnership with Apple to leverage its “Apple Arcade” platform.

Live Nation Entertainment, the world’s largest live‑event promoter, closed 2023 with a modest 2% rise. Deadline cites the company’s “post‑pandemic recovery” in concert ticket sales, but also notes the “competition from alternative entertainment experiences” such as virtual reality concerts and immersive pop‑up events.

5. New Entrants and Emerging Trends

A recurring theme across Deadline’s analysis is the growing importance of “ad‑supported streaming” and “platform‑centric ecosystems.” Apple TV+ and Spotify have continued to invest heavily in original content and user acquisition, and while they are not yet considered “media‑and‑entertainment” in the traditional sense, their impact on the sector’s dynamics is undeniable.

The article also references a “post‑inflation” environment that pressures discretionary spending. The S&P Dow Jones Indices’ commentary on “consumer media fatigue” indicates that the market is adjusting to a new norm where audiences are more selective, leading to higher “price elasticity” for streaming subscriptions.

6. Bottom‑Line Takeaways for 2024

Deadline concludes that 2023 was a year of “consolidation and pivot.” The major takeaways for investors heading into 2024 include:

The article emphasizes that the industry will need to continue balancing “content innovation” against “cost discipline.” It also highlights that regulatory scrutiny—particularly around data privacy and antitrust—could shape the sector’s trajectory.

Final Word

Deadline’s exhaustive look at media and entertainment stocks in 2023 underscores a pivotal moment: the industry is no longer dominated by a handful of “big‑name” players; instead, it’s a mosaic of streaming platforms, ad‑supported services, and live‑event innovators, each carving a niche in a crowded, high‑stakes market. For investors, the key is to track how well each company adapts to a rapidly evolving consumer landscape, and whether their business models can sustain growth while maintaining profitability. As the 2024 calendar rolls forward, the sector’s narrative will hinge on which players can best navigate the twin challenges of monetization and audience retention.