When Hollywood Is For Sale: What Media Mergers Mean For Movie Lovers
Disney By Ryan Scott/Oct. 12, 2021 3:55 pm EST
For those who have any interest in media, be it from Hollywood’s perspective or purely from a business side of things, it is no secret that media consolidation has been a big thing in recent years. This, arguably, hit its apex of public interest when Disney completed its buyout of the majority of Fox’s media assets in 2019. But, in less flashy ways for the general public, this is a trend that has only ramped up in recent years, especially in 2021. While it might not make for sexy bar talk, this is wildly important stuff that will affect consumers of media at all levels.
For that reason, we’re here to break down what led to all of this media consolidation, where things stand now, and how this could shape the future of movie and TV shows. Spoiler alert: it all has to do with streaming and Hollywood’s big bet on a streaming-focused future, for better or for worse.
Bye-Bye Indie Studios
Warner Bros.
The fact of the matter is, fewer independent entities are going to exist in the entertainment world as time marches on. Apple is likely going to make a play for a media library at some point, Netflix isn’t going to stop scooping up would-be franchises, smaller studios like Lionsgate and A24 may feel the pressure to sell. This means gigantic media companies will, ultimately, control the vast majority of movies and TV shows we enjoy in the future. Is that inherently a bad thing? It depends on how one wants to look at it. The good news is that competition necessitates, to some degree, a need to try and produce quality content to compete. Though, in many cases, it becomes about playing to the middle, rather than satisfying the niche needs of the few.
More mergers are going to happen, and they are going to happen soon. While paying attention to the minute details of each merger isn’t important to the average movie/TV lover, understanding that this will, in a huge way, impact the types of things that are made, is important. The one tool we truly have as consumers is to vote with our dollars. So, as this continues to unfold, making conscious decisions about how you are voting with your dollars is perhaps the one way we can affect change on the other side of the table.
When Hollywood Is For Sale: What Media Mergers Mean For Movie Lovers
Disney
By Ryan Scott/Oct. 12, 2021 3:55 pm EST
For those who have any interest in media, be it from Hollywood’s perspective or purely from a business side of things, it is no secret that media consolidation has been a big thing in recent years. This, arguably, hit its apex of public interest when Disney completed its buyout of the majority of Fox’s media assets in 2019. But, in less flashy ways for the general public, this is a trend that has only ramped up in recent years, especially in 2021. While it might not make for sexy bar talk, this is wildly important stuff that will affect consumers of media at all levels.
For that reason, we’re here to break down what led to all of this media consolidation, where things stand now, and how this could shape the future of movie and TV shows. Spoiler alert: it all has to do with streaming and Hollywood’s big bet on a streaming-focused future, for better or for worse.
For that reason, we’re here to break down what led to all of this media consolidation, where things stand now, and how this could shape the future of movie and TV shows. Spoiler alert: it all has to do with streaming and Hollywood’s big bet on a streaming-focused future, for better or for worse.
The Great Consolidation of Big Media
20th Century Studios
The Streaming Wars and the Need for IP
Netflix
While licensing content is still a big part of the deal, because everyone is, more or less, in business for themselves, it’s about using streaming as a house for movies and TV shows the respective company controls. That has created a huge need for intellectual property (IP) that can be used to created content capable of attracting subscribers. Two of the most notable examples from Disney’s camp, with the company purchasing Lucasfilm in 2012 to bring “Star Wars” back to life, and their purchase of Marvel in 2009. Both purchases were in the $4 billion ballpark, and that figure is going to become really important here in just a minute.
A Seller’s Market Emerges
MGM
Remarkably, MGM, in the current marketplace, was worth more than Disney paid for Marvel and Lucasfilm combined. Perhaps nothing illustrates just how much has changed over the last decade than that single point. That is why virtually any company with a library to sell is gearing up to do so, because now is the time to cash in.
Other recent, splashy examples include Netflix buying the Roald Dahl Company, which includes “Charlie and the Chocolate Factory,” in addition to the rest of the author’s acclaimed works. Reese Witherspoon’s production company Hello Sunshine, which was founded in 2016 and produces shows like “The Morning Show,” sold to private equity firm Blackstone Group Inc. for a staggering $900 million. More recently, it was revealed that Magnolia Pictures, the distributor behind the “V/H/S” and “REC” franchises, among many other movies, is up for sale as well.
Bye-Bye Indie Studios
Warner Bros.
The fact of the matter is, fewer independent entities are going to exist in the entertainment world as time marches on. Apple is likely going to make a play for a media library at some point, Netflix isn’t going to stop scooping up would-be franchises, smaller studios like Lionsgate and A24 may feel the pressure to sell. This means gigantic media companies will, ultimately, control the vast majority of movies and TV shows we enjoy in the future. Is that inherently a bad thing? It depends on how one wants to look at it. The good news is that competition necessitates, to some degree, a need to try and produce quality content to compete. Though, in many cases, it becomes about playing to the middle, rather than satisfying the niche needs of the few.
More mergers are going to happen, and they are going to happen soon. While paying attention to the minute details of each merger isn’t important to the average movie/TV lover, understanding that this will, in a huge way, impact the types of things that are made, is important. The one tool we truly have as consumers is to vote with our dollars. So, as this continues to unfold, making conscious decisions about how you are voting with your dollars is perhaps the one way we can affect change on the other side of the table.
More mergers are going to happen, and they are going to happen soon. While paying attention to the minute details of each merger isn’t important to the average movie/TV lover, understanding that this will, in a huge way, impact the types of things that are made, is important. The one tool we truly have as consumers is to vote with our dollars. So, as this continues to unfold, making conscious decisions about how you are voting with your dollars is perhaps the one way we can affect change on the other side of the table.
