The Hollywood writers strike may be over, but its effects are apparently causing some pain in the Web video industry — specifically at Limelight Networks (LLNW), which pushes digital videos across the Internet to viewers.
During Limelight’s Q4 earnings call, chief Jeff Lunsford said the writers strike will cost the company more than $1 million in lost revenue this quarter, and could possibly cost a few million dollars per quarter for the rest of the year. “New content is what draws viewers online,” Lunsford said, “and there’s simply less new content in the ecosystem this year because of the strike.”
“We saw major customers postpone initiatives, push out budgets, hunker down into a very defensive posture with their spending,” he said. “It’s hard to tell whether they’ll go back full steam ahead right away, and even then there will be some lag effect before we get new content out there. The actual release of the content is what drives our business.”
Limelight gave Q1 revenue guidance between $30 million and $32 million, so $1 million represents about 3% of its quarterly sales.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.