International leaders are reacting to the breaking news that Netflix is pulling out of the Warner Bros deal, paving the way for David Ellison to finally get his shiny new toy.
While there’s a level of sales fatigue most we spoke to would rather be off the table at all, there are plenty of strong emotions, both with Paramount’s ‘victory’.
US and EU regulators will have their say, so this is not the last chapter in this saga, but the most urgent concern expressed to us was the number of possible job losses due to duplication of roles. “The cuts are going to be brutal,” a longtime studio executive said.
Other structural concerns were raised, ranging from the health of the broader industry to creative diversity and political implications.
A veteran regional studio head told us: “The debt repayment plan alone doesn’t matter. If Netflix doesn’t think it’s reasonable at that price, then what genius at Paramount thinks he can make it work? It’s very easy to make savings by cutting budgets and people, it’s very difficult to grow the business systematically and systematically. The other hand has shown that there is another and better way. There will be more blood than that. The Iron Lungand more BS from the show talking about their best friends and colleagues on the studio side while not only stabbing the Warner staff in the back, but pushing them down the stairs at the same time.”
They continued: “Get ready for 30 remastered movies a year produced by Oracle AI, no one else to market them. Transformers vs Superman 8.”
The leading European financial producer also expressed the opinion that this may be a missed opportunity for the industry: “I would ring a bell, because it sounds like the transaction is driven by the economy and not about the right partner. Although Netflix appeared for a while as a strange guardian of WBD, in the end they are a very new generation, business or entertainment.”
They continued: “This iteration of Paramount has no history of innovation and as such, there is no reason to expect this to be anything other than like all other media mergers – overlap and integration and low risk. In an entertainment industry that is already on its knees I think it is a huge mistake. The key would be to keep raising reasonable prices to reduce this debt/current debt.”
One high-profile producer who regularly works with US studios said: “Like many, I’m shocked that this is happening at all. I know there was some surprise at Netflix that Ted was leaving so soon. But he’s a smart guy. These tech companies don’t let their emotions get in the way of moving their business forward. It’s a different concept … Paramount is very difficult to make a single studio.”
Philippa Childs, the head of the UK’s largest entertainment organization said today: “Whoever takes over Warner Bros, the continued consolidation of the arts industry is a concern for anyone who values competition and the value of voices and stories in entertainment and the media. I am concerned that the takeover will have a negative impact on jobs and add to the uncertainty in what is already a huge demand in the profession. We must be careful to avoid more content uniformity and the loss of other unique and unique outputs. of the UK.”
According to reports, the Paramount deal was made more possible due to stakes in Qatar, Abu Dhabi and Saudi Arabia. Money in the Middle East is already flowing freely through global entertainment and media but many are wondering what strings will be attached to this latest and greatest US media investment. These were not charitable donations.
“These are important questions to ask,” said one overseas-based veterinarian. “We may not know the answers, but the idea that the kings of the Middle East are going to own the media in the US (and around the world) is shocking. We just got caught up in it a year later and the madness of Trump.”
A veteran of the sector based in the Middle East predicted that the investment is an attempt to gain more influence and soft power in the US “Of course it is”, they said.
Not everyone we spoke to this morning was so happy. Others are happy that Paramount is back in the driver’s seat.
The head of Europe’s leading film distribution company with multiple studio deals told us: “Of course everyone would like Warner Bros to stay alone, but that’s not going to happen. Paramount’s purchase is better than Netflix’s because at heart David Ellison is a producer – he loves filmmakers.”
One longtime broadcast executive told us: “Selling to Paramount is the best in the market. Ellison was never going to quit. Netflix already dominates. Within five years, they would have kept the theater channel with maybe six of their top titles but the rest were headed to the platform. That’s bad for business and bad for consumers.”
Another source who has held leading roles at multiple studios wrote: “I don’t like David Ellison’s politics but I think this will change over time. You can’t run Warner Bros. Discovery as a content creator in the right division and expect to make money. The last owners of Paramount were bad. At least this team is in it for the long term and not just financial management.”
Vue founder and CEO Tim Richards is one of many we’ve spoken to recently who didn’t favor the deal at all: “It’s just unfortunate that Warner Brothers is in this position,” a show vet told us last week. “It’s a great studio…Last year the company made $4.2BN at the box office. It’s not really a struggling studio.”
But he may have echoed the sentiments of many viewers by adding: “Cinemamakers around the world have been trying to work with Netflix for 15 years, and they have failed, and it’s been very frustrating. It’s a company that only found out three weeks ago that it wants to release movies in theaters, compared to a highly respected filmmaker like David Ellison who is doing an amazing worldwide record with an amazing worldwide commercial record.”
