Disney, Warner Brothers, Larry Ellison discussed on Bookworm- Michael Silverblatt

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Banter met felony of the Hollywood reporter, Matt. Hello. So I'm going to do a quick lightning round of some news. Just because it's been kind of a newsy week on. We'll talk in depth about some other stuff. I'm going to just mention that James Gunn having been dumped by Disney after creating good guardians of the galaxy franchise for them is doing suicide squad a sequel starting from scratch for Warner Brothers. I would call that a big break for Warner Brothers potentially. They've had so much trouble with the DC universe. And it makes Disney look a little not that smart because they dumped him over old tweets. And I don't think a lot of people think that was a necessary move. Also, I will mention the venom has worked really well for Sony Pictures that is a marvel minor character, but marble itself, the Disney marvel Disney owned marble didn't really make it. And this is part of Tom Rothman strategy of finding and mining these more minor characters which Sony could really use. They have Spiderman, but they could always use more. And he's really. Put a lot of energy into that. The movie was shredded by critics and yet it's doing really well at the box office. So that's if I were Tom Rothman after having been nervous and taking on a partner out of nervousness. I would now be like I shouldn't have taken on the partner, and I'd be pretty happy. But let's talk about Warner media Warner media which used to be Time Warner that's a collection of media assets HBO Turner, which is TNT and TBS. And of course, the Warner studio which has a TV studio and a film studio. John stanky, the new head under AT and T now that this company has been bought and have the name or media. He announced a new streaming service coming on line and the fourth quarter of two thousand nineteen and that means a lot of things. I mean, they have a humongous library to exploit. This thing was gonna come online and the competition is just wild in the streaming space now. Yeah, the streaming wars are real. And this is something that by the end of next year. You're going to have this service. Warrener's? You're also going to have the Disney streaming service, which is going to have a big big offering a programming from Star Wars to Disney movies to original stuff. So this is all part of the transition. We're seeing from traditional linear television distribution to digital distribution direct to consumer models where these studios are no longer going through middlemen to get their content out. They are creating their own service or seeing what Netflix did. And they're leveraging these decades worth of library and original content to compete with net. Flicks. The ramifications of this are going to be game changing for everyone because net flicks is going to have to spend spend spend as they have been to keep up because they're going to be losing all this amazing content. I mean, these shows that like friends and west wing, and Gilmore girls all these shows that young people are Netflix shows are not there Warner Brothers shows, and they're going to be going away. So that goes away. The vast majority of Netflix viewership is still licensed content not originals. So they've got to replace that. And they've got to figure out what a post licensed content. Netflix services. Yeah, they're spending a lot to get there. And we'll see if they do before the stuff goes away as you said now, and meanwhile, Amazon which has been in the space is really trying to, you know, make sure they don't get completely left behind and apple is coming in. So we're looking at a world where instead of having a cable bundle rammed down our throats. We can pick and choose among a lot of streaming services, which may actually have stuff that we really want to watch. I mean as much as I would like to kind of slimmed down the Bill. I don't know if I'm going to be able to I want HBO I want net flicks. I like the originals even though I know most of the viewership is the older shows. And you know, I'm gonna want this that and the other. So after a while, you know, this brave new world where maybe we didn't need the bundle is gonna look like you just need a bundle of streaming server. Well, that's the big question is that the endgame of all this? There's going to be a certain number of streaming services that form whatever big bundle skinny bundle. There is that becomes successful. And that's the game plan right now for all of these studios to get into that bundle. And I think you're going to have to have Disney in that because of the franchises and the content that they have obviously net. Flicks will Hulu be a player there will Amazon prime I'm guessing. Yes, they'll have investments. Their Warner Brothers. It's Comcast goo announce a streaming service of their own, you know, some of the more minor players like the Viacom channels in the Paramount Pictures, what are they gonna do? Are they gonna go direct to consumer or not these are game changing and huge ramification decisions because they are the future of entertainment consumption. Yeah. Now, I'm going to turn to a part of intertwinement that is very challenge right now. And that is the quality adult film, and I'm talking about the kinds of movies made by Anna Purna, this is Megan Ellison daughter of Larry Ellison, who's a very wealthy young woman. She and her brother David have both been in this business. David going to a more commercial goals. She has been a patron of movies like zero dark thirty and FOX catcher, she is known to be quite an impulsive person. And in the last few days, it seems that that pipeline of money and believe me the industry is very thirsty for that pipeline of money is in jeopardy because she has dropped a couple of movies, including this one about Roger Ailes with major star, Shirley stare on Margot Robbie and more. You know, this is a Gretchen Carlson story. It seems like there's a huge pullback because they have lost so much money, partly because they tried to distribute their own movies, which is expensive. In difficult, and partly because the movies haven't been commercial, and it seems that Larry Ellison who's allowed her to finance this. And she she is an adult and has plenty of money. But somebody's put the brakes on this. And Hollywood is that. Yeah. And it gets to this question of distribution. We've seen this over and over with companies that tried to go into the distribution game companies like open road companies like STI to a smaller degree where it's really hard to distribute your own movies around the world, and even in the US, and it's a much different business from simply producing movies. And then having someone else foot the Bill and get all the theaters to play it and a few years ago. Megan Ellison decided that she wanted to go into distribution in the first movie. She did was this movie Detroit that completely flopped last summer. It was Detroit riots movie. It was a very expensive for that space. Bigalow. Movie and it didn't perform and. That I think was the canary in the coal mine for this business because distribution can be a wrecking ball because it costs a ton of money to put out a movie, and if you don't have the kind of money that a major studio has to front these losses. You really really got to have money coming in from elsewhere. And I think that's what the hurt. Larry Ellison is asking right now is how much of this money is going to be necessary. Yeah. Especially when these movies are not commercial. So as you mentioned other companies in this space have been very very challenged. And it just may be that that kind of, you know, relatively big budget production is not a thing anymore. Thank you, Matt. Thank you. That's Matt Bellamy editorial.

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