For WME Chief Operating Officer Dan Limerick, consolidation in Hollywood has given way to tech giants encroaching on territory historically held by traditional media.
Mr. Limerick, who took the keynote speech Wednesday at THR's annual Power Business Managers event hosted by City National Bank, along with Hollywood Reporter co-editor-in-chief Ma Roshan, described the current state of the entertainment industry from its heyday in 2000. I compared it to the 2000s. The proportion of television broadcasting that began to see incumbents swallowing competitors.
“Technology is born in times like these,” he says.
In his opinion, this change is not such a bad thing. He observed that the companies that are now part of the Hollywood landscape are helping to solve problems caused by the merger and acquisition frenzy. “As we integrate, a lot of sameness is starting to seep in,” he added. “The show will improve over time as the diversity of studios we work with increases.”
Asked about the shrinking industry, Limerick pointed out that the tech giants are bringing so much money to Hollywood that more content is being created than ever before. Regarding the challenges to getting smaller titles approved due to the current production climate, he said agency clients “sometimes have to cut a little bit more to get a bigger backend.” WME executives also emphasized the need for more transparency in viewership and engagement data to measure what studios value.
“It's customer acquisition, but what are the big metrics for them?” he asked. “View counts? I don't know if there's a common understanding… At the end of the day, we want our clients to pay us when the content is successful. It's a black box at the moment.”
From left: The Hollywood Reporter President Joe Shields, WME Chief Operating Officer Dan Limerick, THR Co-Editor-in-Chief Nekesa Mumbi Moody, Ma Roshan (Rodan Eckenroth/The Hollywood Reporter via Getty Images)
Tech companies that have entered the entertainment industry in recent years include Apple, which has launched its own production division and is investing large sums of money into content production, and Apple, which acquired MGM Studios in 2022 and is expanding into small to small-scale productions. There are companies like Amazon that have found a niche market. A mid-budget title. The deal in which David Ellison's Skydance will take control of National Amusement, which controls Paramount Global, is expected to close next year.
These deals have caught the eye of regulators and Hollywood unions, further consolidating a shrinking group of content buyers. Disney's series of acquisitions (including Pixar, Marvel, and Lucasfilm) have driven up the prices of streaming services, furthered the company's vertical integration, and forced creators to give up licensing revenue for future television content, forcing them to Quantity and innovation have declined,” according to the Writers Guild of America's 2023 report. Meanwhile, Netflix, which once helped foster a competitive environment, is now “using its position as the world's largest streaming service to abuse its influence as an employer and reduce spending on innovative content. and raising prices for consumers,” the report claims.
Winners John McIlwee and Jane Lynch (Rodan Eckenroth/The Hollywood Reporter via Getty Images)
Disney closed its ABC Signature TV studio in October, the media conglomerate's second action this month. The reorganization includes merging ABC and Hulu's script development teams.
Limerick said when a company that prides itself on challenging the status quo becomes a major player in Hollywood, there are consequences. Prompted by Roshan to share his thoughts on the scuffle between OpenAI and Scarlett Johansson, he pointed to the emergence of artificially generated tools that steal the likenesses and works of WME clients, then proposed a bill to account for such thefts. I asked for approval. He echoed Ari Emanuel's criticism of Sam Altman at the Aspen Ideas Festival in June, when he said the OpenAI founder was a “fraud.”
“I think I'll stay here too,” Limerick continued. “The winners will be those who can effectively leverage it for creative endeavors.”
As for Warner Bros. Discovery, WME executives said CEO David Zaslav has a “tough job” trying to “navigate a much larger world.” He added: “They have a really strong library, history and brand.”
Jahan Wang, Executive Vice President, Entertainment Banking, City National Bank (Rodin Eckenroth/The Hollywood Reporter via Getty Images)
The Q&A concluded a breakfast celebrating Hollywood's top business managers at Spago Beverly Hills. THR Co-Editor-in-Chief Nekesa Mumbi Moody kicked off the lineup of speakers, including THR President Joe Shields and City National Bank Executive Vice President of Entertainment Banking Jahan Mumbi Moody. Mr. Wang was included.
This year's Business Manager Icon recipient was John McILwee, founder of J. McILwee & Associates, Inc. He has appeared several times on THR's Top Business Managers list, which includes Jane Lynch, Matt Reeves, Kevin Costner, Maura Tierney, Chris Olsen and Kelly Condon. client.
Lynch presented the award to McIlwee. She emphasized that in addition to his relentless optimism and work ethic, he was “the most famous person I've ever met.”
She added: “He says life sucks. But what I like most about John is that when I present him with something that really confuses me, that it's easy to do, he tells me, 'It's easy.' That's what I do. ”
From the podium, McIlwee said success in the industry comes from creating win-win situations whenever possible. “Successful negotiations do not mean someone has to lose,” he explained.
And in a speech that drew many laughs from the audience, including Richard Wise, he concluded: “When will we get our own IMDB category?”
