Talent vs Suits, version 2022
From the dawn of the media & entertainment industry, a recurring theme has been the antagonistic relationship between corporations and talent. Like back pain, it flares up intermittently, stirs up games of revisionist history and inspires industry participants and commentators to prognosticate that ‘this time is different’. It rarely is.
Most recently, the ire of the creative world is pointed at Warner Bros Discovery, as the newly merged company is slashing costs and canceling or removing programming to secure post-merger write-off treatment and lower residual payments. Most notably, HBO canceled and is removing prior seasons of the acclaimed sci-fi series Westworld, deciding instead to license the program to third-party ad-supported channels. A post by Bloomberg’s Lucas Shaw summarizes the talent-side of the debate:
“Now, if you are the creator of Westworld, your show is going to be licensed for almost no money to some ad-supported streaming service. That is not exactly what you had in mind when you created this massive sci-fi project for the top destination in TV”
We think this perspective omits important datapoints. Westworld cost HBO ~$100M per season and is, rightfully and contractually, its property. Viewership of the show since launch has declined by over 60%, while costs have continued to escalate. In 2019, the creators of the show, highly sophisticated industry professionals, leveraged the critical acclaim of Westworld to secure a ~$150M overall deal with Amazon, thereby leaving their prior home of Warner Bros TV (which likely paid them at least $10–20M) for a rival. Lastly, the distribution of the show to free-to-watch platforms ensures a much wider reach and longevity, beyond solely the affluent demographic HBO historically targeted.
While less successful creators may indeed have been hurt by the abrupt action by the studio, top-tier Hollywood talent definitively know the game they sign up for. Warner Bros Discovery could have utilized more finesse, but for better or worse, the fundamental truth remains the same: the day creators decide to hand off their IP in exchange for a financial windfall, their forward-looking opinions are immediately devalued by the corporation.
