The Hollywood Reporter’s Post

Cost cutting in Hollywood News again. ————————————————————- There’s a massive CAPEX philosophy problem in the film TV business, and it’s not just on the project budgets itself. A few weeks ago, I was in a happy hour meeting on Hollywood BLVD and it happened to be in the same hotel where a large premiere afterparty was being held. I was astounded at the spending. The whole street was shut down, the hotel bought out, massive catering/bar, opulent event decor. My partners and I agreed that the price tag had to be >$2m. Not that there’s anything wrong with throwing a good party for stakeholders, but as a shareholder of the particular company that was throwing the event, it painted the gloomy earnings picture in a really poor light. I haven’t studied WB’s books, but I’m guessing there’s a lot of cost that can be cut in places besides salaried employees. Sometimes layoffs happen, it isn’t inherently evil, but it’s tough to swallow when those same people spend millions on fancy parties that don’t directly drive sales/revenue. Prioritize investing in people over parties. Salaries over perks. 💪

The film and television industry faces more challenges as #WarnerBrosDiscovery announces another round of layoffs. According to Deadline, the company is implementing additional cuts as part of cost-cutting measures, impacting departments such as Max, production, business affairs, and finance. This comes after CNN laid off 100 employees last week, reflecting broader industry turmoil as companies like Paramount, Disney, Amazon, and Netflix also make cuts. In addition, Warner Bros. Discovery is under pressure to sell the #SnyderVerse to Netflix or bring back #ZackSnyder to complete Justice League 2 and 3, which raises doubts about upcoming projects like James Gunn's DC Studios films. Despite CEO David Zaslav's defense of the layoffs for restructuring purposes, the ongoing job cuts and fan discontent indicate more profound organizational instability.

The film and television industry faces more challenges as #WarnerBrosDiscovery announces another round of layoffs. According to Deadline, the company is implementing additional cuts as part of cost-cutting measures, impacting departments such as Max, production, business affairs, and finance. This comes after CNN laid off 100 employees last week, reflecting broader industry turmoil as companies like Paramount, Disney, Amazon, and Netflix also make cuts. In addition, Warner Bros. Discovery is under pressure to sell the #SnyderVerse to Netflix or bring back #ZackSnyder to complete Justice League 2 and 3, which raises doubts about upcoming projects like James Gunn's DC Studios films. Despite CEO David Zaslav's defense of the layoffs for restructuring purposes, the ongoing job cuts and fan discontent indicate more profound organizational instability.

PREDICTION: FILM, TELEVISION, GAMING Not jumping on the bandwagon of talking about layoffs but, I will address the aftermath. Given the sheer level of talent that is on the market searching for employment, I foresee a huge opportunity for independent teams and individuals to leverage their skills to create the future of these industries. With the inclusion of AI, not the thieving kind, but the kind that speeds up workflows, I see a world in which individual creators and teams can leverage cost/benefits against RFPs to gain an exponential gain on ROI. After all, those years in the trenches going through school and working have to account for something, so why not change the game? Studios and companies want a return for their investors but, fight tooth and nail to make the best product against enormous competitors within niche markets. All the while, these same companies ignore the creativity of the people making the product, so why not take that commodity away from them and make them pay a HUGE premium for the end product? Not the "Productivity" of making the product as an employee, but the actual end result. It took creators such as Gary Vaynerchuk and Jimmy Donaldson 7+ years of trial and error to gain notoriety and that was in completely unknown social media territory. With film, game, and television production, the secret sauce are the skills learned to get the job done. If like minded teams unite or individual creators take action, who can stop you??? YOU ESSENTIALLY ARE THE "PLUG" CHANGE THE GAME GO MAKE SOMETHING!!!! AND CHARGE A PREMIUM 🤪🤪🤪

New Word on the Street! 📢 Have you heard the news? Paramount Global has announced layoffs despite their recent Super Bowl success. This has raised concerns about how the company is perceived. In the latest episode, you can learn better ways to handle layoffs. Don't forget to share your thoughts on this topic in the comments! #Layoffs #SuperBowl #WordOnTheStreet

In the new Word on the Street, we have some helpful tips on how to handle layoffs. Feel free to join the conversation and share your thoughts and experiences in the comments section.

My take on the Paramount/Warner Bros. Discovery deal rumors with some really wonderful commentary from industry leaders on what it means for the ad biz. A lot of complicated parts moving here, with numerous pros and cons the deeper into the weeds you get. “Consolidation is always hard on everyone involved; it causes layoffs, which cause loss of institutional knowledge of media company offerings and brand insights," one media buyer told me. "With consolidation, the business strategy of the newly formed media company changes to best suit their new needs—and their needs are generally cost cutting and increased revenue. Advertising is a go-to for that.” Read more below on Ad Age and let me know if you think we're in for a WBDP future. https://lnkd.in/gVfhZYne

Warner Bros. Discovery's decision to lay off nearly 1,000 employees amid financial turmoil is a glaring example of corporate shortsightedness. In an era where innovation and agility are paramount, why are media conglomerates still resorting to layoffs as a primary solution to their problems? David Zaslav's approach of cutting jobs and considering asset sales reflects a troubling trend in the industry: sacrificing human capital to appease shareholders. What happened to investing in talent and technology to drive growth? The analyst's call for strategic alternatives, including spinning off CNN or merging with other streamers, highlights the desperate measures being considered to salvage a faltering business model. Is this the new normal for media giants? Chopping jobs and selling off prized assets while ignoring the root causes of decline - outdated business models and a lack of innovation. It's time for a paradigm shift. Media companies must prioritize sustainable growth strategies over quick fixes. The future of the industry depends on it. Let's start a conversation: Should media companies invest more in innovation and talent rather than resorting to layoffs? How can they balance financial stability with sustainable growth? #MediaIndustry #CorporateStrategy #Innovation #Layoffs #BusinessTransformation