The impact of the Hollywood screenwriters strikes has been laid bare in a trading statement by UK subtitling software specialist, Zoo Digital, which has warned investors of a reduced revenue outlook due to the “well publicised hiatus in the normal flow of orders across the industry”.
The company stated that the causes are twofold and short term: “…several of Zoo’s major streaming company clients have for some months been implementing cost-saving measures and reorganising their operations as the industry evolves and confronts higher levels of competition, leading to the deferment of some costs. Secondly, the Writers Guild of America strike is in its third month and this is now having an impact on the levels of localisation and media services work on new titles.”
However, despite the near-term outlook, the company anticipates market share and revenue levels to improve in the second half of the financial year. “Zoo expects to be in an even stronger position with several customers following a rationalisation of their supplier bases with Zoo selected as one of a smaller number of vendors. Consequently, the board expects the company to take further share of the media localisation market once former business levels resume. It is reasonable to expect this to be in the second half of the current financial year.”
The company also pointed to positive advancements in its negotiations with a Japanese technology firm regarding the acquisition of its localisation subsidiary.
