On December 4, news broke that the storied studio behind classics like Citizen Kane and the Harry Potter series was set to be purchased by a major streaming platform known for hits like Tiger King and Squid Game. I reached out to a studio executive for his take. He simply texted, “Disaster,” explaining that this acquisition could mean the end for traditional movie theaters or signal a huge shift in how films are produced and licensed.
By Monday, as Paramount’s David Ellison tried to push back against the looming Netflix takeover, the executive’s mood had shifted. He was no longer feeling despair about the situation. Instead, he seemed resigned to the tighter, more competitive Hollywood landscape—where big-budget productions are losing ground to quick, viral content. He decided to sit back and watch this unfolding drama.
Ironically, the fight over traditional Hollywood is proving to be as gripping as any film. The rivalry features tech moguls trading barbs at investor meetings—Ellison calling Netflix’s value uncertain, while Netflix’s Ted Sarandos shrugged it off.
Hollywood today faces a leadership crisis. Veteran executives like Disney’s Bob Iger and Comcast’s Brian Roberts are at the helm, but their companies seem to cling to past success models that feel outdated. Many potential leaders lack the vision needed to navigate these changes, battling with boards and declining profits that stifle innovation.
At the center of this drama are Sarandos and Ellison—two men representing different visions for Hollywood’s future. Their comments suggest a nostalgic commitment to traditional storytelling, despite their untraditional backgrounds. Both have demonstrated the ability to adapt in a world where streaming and quick content production are reshaping the industry.
The sale of a historic studio to a disruptor was long predicted but still seems surreal. Just a few years ago, the discussion was about whether a major studio would acquire Netflix, not the other way around.
Concerns about who will lead this new era of Hollywood are valid. With audiences increasingly distracted and costs soaring, owning a studio may become less appealing when anyone with a basic understanding of tech can produce content. The shift towards automation and user-generated content raises questions about the future of film production.
Despite these challenges, Hollywood is resilient. New ideas and voices will emerge, fighting against the constraints of a changing industry. Yet, it’s hard to ignore that traditional film-making—the kind fueled by human creativity and passion—is in peril.
In this evolving landscape, the ambitions of would-be leaders like Sarandos and Ellison have to be scrutinized. Both men are courting political figures and wielding influence, but the iron grip of entertainment seems shaky at best. As they vie for control, many in Hollywood are rooting for Sarandos over Ellison, without realizing the potential consequences of putting their faith in either leader.
The options seem bleak: choose the algorithm-driven business model that may lead to fewer theaters, or align with someone tied closely to controversial politics. Whichever path is taken, it’s clear that the spoils are increasingly limited, and only one can claim the crown in this new Hollywood.
In recent reports, it’s noted that streaming platforms now dominate over 80% of the viewing market across the U.S., underscoring the urgency for traditional studios to adapt. The future of filmmaking hangs in the balance, presenting a curious mix of potential and peril. It’s a strange time for an industry that was once the epitome of creativity and innovation.
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