As a seasoned gamer who’s witnessed the evolution of the entertainment industry, I can’t help but see parallels between the gaming world and Hollywood’s current state. The rise of tech giants in Hollywood feels strikingly similar to console manufacturers like Sony and Nintendo entering the PC gaming market.
For Dan Limerick, the COO of WME, the consolidation in Hollywood paved the way for tech giants to intrude into territories previously dominated by traditional media.
On a weekday, Limerick shared a thoughtful discussion with Maer Roshan, who’s the co-editor-in-chief at The Hollywood Reporter, during their keynote talk at the annual Power Business Managers event hosted by THR and sponsored by City National Bank. During this dialogue, Limerick drew an analogy between the current condition of the entertainment sector and the era of peak broadcast TV in the 2000s, where established players began acquiring their rivals.
“Times like this give rise to tech,” he said.
By his thinking, the shift isn’t all that bad. He observed that the companies that are now a part of the Hollywood landscape are contributing to solving the issues that the mergers and acquisitions feeding frenzy triggered. “As we consolidate, there’s a lot of sameness that starts to percolate,” he added. “With a more diverse slate of studios to work with, the programming gets better over time.”
Regarding the shrinking of industries, Limerick pointed out that tech giants have infused a significant amount of capital into Hollywood, leading to an unprecedented amount of content being produced. However, he acknowledged difficulties in approving lesser-known projects due to the current production climate, stating that the agency might need to accept lower initial payments for potential larger returns later on.
In recent times, tech giants like Apple and Amazon have ventured into the entertainment sector. Apple established its own production unit and has been investing heavily in content creation, while Amazon acquired MGM Studios in 2022 and focuses on producing smaller to moderate-budget titles. It’s anticipated that David Ellison’s Skydance will acquire a majority stake in National Amusements, the company governing Paramount Global, by next year.
As a dedicated fan, I’ve noticed that these transactions have been narrowing down the pool of content providers, drawing attention from regulators and Hollywood unions alike. Disney, through its acquisitions like Pixar, Marvel, Lucasfilm, and more, has significantly increased prices for their streaming services, intensifying their vertical integration, pressuring creatives to relinquish future licensing revenue from their TV shows, and allegedly diminishing output and innovation, as stated in a 2023 report by the Writers Guild of America. Netflix, on the other hand, was once a game-changer promoting competition, but is now reportedly misusing its status as the world’s largest streaming service to exploit its employees, cut back on innovative content spending, and hike up prices for consumers.
In October, Disney closed down its ABC Signature TV production studio, marking the second instance of a media giant taking such an action this month. This restructuring involves combining the scripted development teams from ABC and Hulu.
Companies that challenge the norms and rise to prominence in Hollywood, like OpenAI, may face repercussions, Limerick noted. When asked by Roshan about the dispute between OpenAI and Scarlett Johansson, he highlighted the growing use of generative artificial tools which exploit the likenesses and works of WME clients without consent. He then advocated for legislation to address such intellectual property theft.
Limerick added, ‘I believe it will remain here.’ The victors will be those who can skillfully utilize it for tasks similar to our creative pursuits,” Limerick said.
The Q&A session concluded the breakfast held at Spago Beverly Hills, which was a celebration honoring Hollywood’s distinguished Business Managers. To begin the series of speakers, THR‘s co-editor-in-chief, Nekesa Mumbi Moody, took the stage. The lineup also included THR president, Joe Shields, and JaHan Wang, who is the executive vice president of entertainment banking at City National Bank.
The 2021 recipient of the Business Manager Icon award is John McILwee, the creator of J. McILwee & Associates, Inc. He has been featured multiple times on THR‘s list of top Business Managers and manages the finances for notable figures such as Jane Lynch, Matt Reeves, Kevin Costner, Maura Tierney, Chris Olsen, and Kerry Condon.
Lynch handed McILwee an award, praising his undying optimism, diligent work ethic, and knack for name-dropping – a trait she described as the most prominent she’s ever encountered.
She remarked, “John seizes every moment in life enthusiastically, but what endears him to me the most is his response when faced with challenges that perplex me, which can be quite frequent. Instead of expressing any difficulty, he simply replies, ‘No problem at all.’
Up on the stage, McILwee credited his professional achievements to regularly establishing mutually beneficial scenarios. “A fruitful negotiation doesn’t necessitate someone else coming up short,” he clarified.
In a humorous part of his address, he ended by posing the question, “When will we have our own IMDb category?
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2024-10-10 02:55