Amazon MGM Shake-Up: Inside Jen Salke’s Exit and the Fallout

by

Last year on May 14th, Jennifer Salke, head of Amazon MGM Studios, stepped onto the stage at Pier 36 in New York City with a mission: to persuade advertisers that Amazon was determined to succeed in the world of film and television production.

Greetings to all, as we embark on the upcoming century with Amazon MGM Studios,” Salke addressed the crowd in the spacious venue, where towering stacks of money were protected by suited security personnel to highlight Mr. Beast’s Beast Games, and a lounge area themed after the film Road House was set up with a bar.

Or:

“Welcome everyone, as we venture into the next hundred years with Amazon MGM Studios,” Salke spoke to the assembly in the expansive room, showcasing mounds of currency under watchful security guards for Mr. Beast’s Beast Games, and setting up a bar reminiscent of the movie Road House.

Afterward, a grand procession of celebrities graced the stage to emphasize Amazon’s dedication to their business. Among them were Will Ferrell, Roger Federer, Jake Gyllenhaal, Aldis Hodge, Alicia Keys, Patton Oswalt, Keke Palmer, Alan Ritchson, Octavia Spencer, Hannah Waddingham, and Reese Witherspoon who all appeared with Salke on stage.

In the world of entertainment, commitments can always change. Salke effectively conveyed Amazon’s aspirations to Madison Avenue, but only a few months later, Mike Hopkins, Amazon’s executive in charge of video initiatives, informed employees that Salke had been let go, moving towards a production contract instead.

Although the tech company might be a fresh face in Hollywood, it’s more than capable of providing a traditional farewell gift to its executives.

Last Thursday, March 27th, Hopkins spent the afternoon clarifying matters to agents and talent regarding Roy Price’s sudden departure from Amazon. He explained that he aimed to establish a traditional studio structure, with a specific head for film and television reporting directly to him, and Price was an extra, redundant layer in this setup. A source who conversed with Hopkins revealed this information to The Hollywood Reporter. However, many found this explanation less than convincing.

Jeff Salke’s departure occurred at a time when the tech titan was deeply immersed in organizing this year’s advertiser upfront event, which included plans for an evening gathering at New York’s Beacon Theater on May 12, showcasing a lineup of famous talents and updates from Amazon’s extensive entertainment realm encompassing Prime Video, Amazon MGM Studios, Fire TV Channels, Twitch, Wondery, IMDb, Amazon Live, and Amazon Music. Additionally, the studio is scheduled to move to Las Vegas the following week for its inaugural gathering with theater owners at CinemaCon.

The scale highlights the fact that the entertainment industry is now heavily influenced by tech companies. In earlier times, studio executives and TV heads were influential figures, shaping the careers of stars and molding popular trends.

The tech companies engaged in a slow takeover of Hollywood seem to feel differently.

In a recent gathering with employees, Amazon’s CEO Andy Jassy emphasized that he wants to encourage those who are actively contributing and getting things done, rather than focusing on building larger teams. He made it clear that at Amazon, success isn’t measured by the size of one’s team but by the results achieved. Essentially, he said there’s no prize for having a large team.

In his memo to the team, Hopkins acknowledged Jassy’s contributions. He stated that after Salke left, they chose to simplify their leadership structure a bit by not replacing the head of studios position. This move aligns with Amazon’s ongoing efforts to clarify reporting lines and speed up decision-making processes. Consequently, our studio will now function as separate film and television studios.

This model is similar to one likely known by Netflix staff members, as it moved away from the traditional approach where a network or studio head would approve projects. Instead, it empowers executives at lower levels within the organization to greenlight their own movies and TV series without needing higher-level approval.

However, the restructuring at Amazon MGM Studios serves as a clear reminder of how distinct this new landscape has become. For Amazon, the entertainment studio sector is merely a component within a larger system that encompasses Prime Video, sports, a music application and podcast network, a live streaming gaming platform, and a channels business.

At Amazon, the head of the studio functioned as a mid-level manager, with supervision coming from Hopkins, who ultimately answers to Jassy.

Before joining Amazon, Salke held the position of president for entertainment at NBC. Prior to that, she had a lengthy career in television, spending time at 20th Century Fox and Aaron Spelling Productions. Her work includes critically acclaimed shows such as “This Is Us” and “Glee”. With her background in broadcasting, Salke was able to contribute significantly to the success of popular shows like “Reacher”, “Fallout” and “Jack Ryan”. However, some high-concept projects have remained challenging for her to bring to fruition.

The lavishly produced “Lord of the Rings” series titled “The Rings of Power” set a record for its premiere on the streaming platform, but unfortunately, it didn’t maintain its initial momentum. While “The Rings of Power” was backed by Salke’s predecessors, the high-priced spy thriller “Citadel” from the Russo brothers gained support under Salke’s leadership.

Originally conceived as a marquee production for the streaming platform, “Citadel” encountered financial challenges right from its inception. Additional filming, two contrasting edits, and staff departures during the first season increased the initial $160 million budget by an additional $75 million, making it one of the costliest TV series ever produced, second only to another Amazon title, “Rings of Power“. Despite these troubles, the show was granted a second season before its April 2023 debut.

The agent stated, “Many might find this outcome predictable,” they said, noting Salke’s initial handicap. “It wasn’t level,” they explained, as Salke was an expert in television yet lacked a studio infrastructure. “Things could have gone smoother? Absolutely. However, she’s been around for quite some time – seven years – and has had successes with shows like ‘Reacher’ and ‘Jack Ryan’,” the agent added.

The acquisition of MGM by Amazon in 2022 for $8.5 billion brought along complexities, as blending the aggressive, competitive atmosphere of Silicon Valley with the rich history of Hollywood proved challenging. Despite numerous attempts, the executive teams from both sides struggled to find a harmonious fit.

2020 saw Salke beginning to work under Hopkins, who held the position of Amazon Video Entertainment Chief. A source who collaborated with Hopkins and Salke noted that Mike and Jen had been engaged in a power struggle for quite some time, and their professional relationship was never harmonious.

In 2020, Salke began working for Hopkins, Amazon’s Video Entertainment Chief. A source who had worked alongside both Hopkins and Salke stated that Mike and Jen had been locked in a power struggle for years, and their professional relationship was never a pleasant one.

Later on, we encountered the Broccoli predicament. When Barbara Broccoli and Michael G. Wilson sold the Bond franchise to Amazon in February, it caused a major stir within the entertainment industry.

Following Amazon’s purchase of MGM, which gave them access to the Bond universe, Broccoli and Wilson have not initiated any new Bond productions. Reports and insiders suggest that a contentious relationship between the Bond producers and Salke could be a reason behind the lack of a Bond movie on Amazon. A producer associated with the studio division has stated, “It was one blunder in a string of blunders. And this was almost a billion-dollar blunder.

As a gamer, I found myself left out of the limelight when my name wasn’t mentioned in any announcements about the groundbreaking deal. “Part of the role is to handle talent,” they said, “and it seemed like I wasn’t delivering.” That’s what someone who had collaborated with both Hopkins and me shared. It appears Amazon is considering hiring a new executive to take charge of 007, following their decision to bring in Amy Pascal and David Heyman to lead the upcoming Bond film.

Following the MGM acquisition and the arrival of Courtenay Valenti, a seasoned Warner Bros. production head under Salke’s leadership, the Amazon film lineup has started to clarify its identity after years of ambiguity. Successful in-house productions such as “Road House” and “The Idea of You” have thrived on streaming, while an impressive schedule ahead features commercial action films like Ben Affleck’s “The Accountant 2” and Shane Black’s “Play Dirty,” as well as prestigious projects like Luca Guadagnino’s “After the Hunt.

The studio has increased its focus on movie theaters as well, as indicated by Valenti’s statement at this year’s SXSW film festival that Amazon MGM plans to release 12 to 14 movies in cinemas in 2026. A top agency partner who has collaborated extensively with the studio explains that Salke, who was heavily invested in Amazon Prime, is no longer needed because the studio is now committed to creating theatrical movies and not just supplying content for their streaming service.

In essence, it appears that Salke’s arrangement, with Valenti managing films and Vernon Sanders focusing on TV, became outdated in the current landscape of technology-driven entertainment. Salke expressed this sentiment in an email to staff from Hopkins, announcing her departure, stating, “As I ponder my next phase, I have always been seeking a point where I am certain that our efforts have prepared Amazon MGM Studios for even greater success in the future.

Read More

2025-03-28 18:55