HBO, AT, Netflix discussed on The Business
My colleague and banter, Matt Bella of the Hollywood reporter, Hello, Matt other. So this past week HBO through a typical splashy lavish premier for game of thrones entering its final season. Is it big time of transition at HBO? Richard clip ler is out a new management is in John stanky is head of Warner media. He now oversees that Bob Greene Blatt who came over from NBC specifically overseas HBO as well as some of the cable channel's big job for him. But the question, of course, is with game of thrones. Which is been such a big hit for HBO going out. Is there a chance of HBO loses. Some of it's Mojo in momentum. This is a very key moment for HBO because it is by far the largest show on the network. And now that's going to go away. They do have four successors series. They're calling them in various stages of. Development, but the closest one isn't even done with the pilot yet. So right now, they're in uncharted waters. And it's going to be an interesting thing at a time when they have a mandate to grow HBO under AT and T their biggest asset is going away. Yeah. And we had done a survey that showed that there's a lot of people who drop subscriptions when their favorite shows go off the air. So they're numerous questions here. Like, can they sustain the quality will people wait and sustain their love for this show or a version of this show will it translate into a spin off or multiple spin offs. And are you going to continue to pay for HBO? If this is your favorite as I just noted a large percentage, I think it was twenty eight percent of people have dropped subscriptions to certain services when their favorite shows go off the air. This is a larger issue then just one show because HBO like every other outlet wants to develop the next game of thrones. And the process that. Lead to the actual game of thrones was millions and millions of dollars spent in development HBO scrapped the original pilot recast it spent the time to get it. Right. And finally birth this show that became this phenomenon AT and T once volume they want more shows, and they want to get more people in the tent at HBO to fuel not just that business. But there are other businesses of subscriptions. So I don't know if the next game of thrones is gonna come from HBO eve, right? And we see overall would they Warner assets that AT and T acquired which are now Warner media. There's just been this upheaval, and you know, many times in the history of Hollywood outsiders have come in Matsuda came in the Japanese electronics giant, and it's not so easy to figure out Hollywood. It's not so easy to manage Hollywood. Well, and we've seen a lot of big corporations come and have a very tough time. So it's going to be an interesting experiment now to see what happens with these. Important assets. Meanwhile, kind of an odd thing from the Justice department this week the Justice department tried to block AT and T unsuccessfully from buying time. Warner a lot of people felt that was not a great antitrust argument as a vertical deal. Some people thought it was a good argument that there are anti trust experts who thought that it was reasonable to try to challenge vertical deal, meaning basically the phone people taking over entertainment assets. And of course, the Justice department did nothing when Disney bought FOX, which is a horizontal merger a big huge entertainment company, buying another entertainment company, but having ignored that and struck out trying to block the AT and T deal justices back challenging the academy of Motion Picture Arts and sciences because they academy is potentially going to make some rules that require that movies play and movie theaters. If they wanna be qualified for an Oscar, this is in my opinion, sort of a joke. I don't understand why the US government is getting involved in the awards that a private organization honoring the arts gives out each year. I just don't see it to me this smacks of net. Flicks calling in favor putting pressure doing whatever it is. They want to do because they are stomping their feet that the academy might institute some rules that would make it harder for Netflix to win an Oscar. Yeah, I mean, the idea with antitrust is collusion. Among the studios is anti-competitive and wrong and therefore poor innocent net flicks. That some of the other streamers might be shut out. I mean, Netflix is really the only one because Amazon has up until now at least had full on theatrical runs for its films. So the weird thing is this is not the Motion Picture Association of America, the MPAA, which is in fact organization made up of the studios, and which I will note just admitted net flicks to its ranks. But that is a group. That could potentially collude against Netflix. But invited them in. This is the thing made up of people who make movies actors and directors, and you know, as you know, the biggest component is actors. I don't even understand how they are supposed to be alleged to have colluded. It doesn't seem like Steven Spielberg. The opinions he may have about Netflix are necessarily going to be the opinions that every single artist has and he doesn't have power over those artists and the people that are on the board of governors of the academy. There's really no business or antitrust argument that I can see that would allow net to make this claim. Or should I say that would allow the DOJ to make this claim and the main point to me here too? I think Steven Spielberg's position is not thoroughly understood. He's not saying Netflix movies can't compete. He's just saying if you wanna compete you have to play in theaters we saw with Roma that's entirely possible out on. So Koran said if you want it, you're going to do it my way Netflix did do it his way they will do it for other auto. Directors play the movie in theaters and you can compete. It's not saying we're excluding net flicks. From this possibility it's just that Netflix has up until now clung to its model of wanting to stream movies on the same day that they might be in theaters if they were in theaters, thank you, Matt. Thank you. That's Matt Bellamy.