economy
The Warner Bros.–Paramount Merger Isn’t Hollywood’s Biggest Problem
Regardless of what happens between the studios, the film industry “is still in trouble,” a historian says.
TL;DR
- The proposed Paramount-Skydance and Warner Bros. Discovery merger is seen as a last resort due to industry-wide challenges like the pandemic, strikes, declining theater attendance, and AI.
- Film historian Jonathan Kuntz compares the current situation to past Hollywood crises, such as the 1960s when conglomerates took over studios due to falling box office revenue.
- Historical survival strategies for Hollywood included revitalizing creative talent, adapting marketing and advertising, and embracing new revenue streams like pay cable and home video.
- Kuntz suggests that while potential solutions like high-priced IMAX experiences or leveraging social media platforms exist, the industry is undergoing a fundamental transformation that may lead to a more fragmented cultural landscape.
- Political considerations have always played a role in Hollywood dealmaking, primarily concerning federal regulation, but the current focus is on employment and industry survival.
- Despite the historical significance of studios like Paramount and Warner Bros., Kuntz expresses concern that they might follow the path of other classic studios that were absorbed or diminished, and he doubts that current merger efforts will resolve the industry's core problems.