Tag: Hollywood

A TV Murder Mystery: Who Killed Game of Thrones?

Most of the time, when Hollywood kills off one of its TV shows, we know why. The ratings had been sinking or the talent asked for too much money. (Or recently, it was produced by a rival TV network/conglomerate.)

And yet, HBO killed off Game of Thrones, a TV series that was getting more popular with every season and making its parent company billions in the process. Meanwhile, other long-running series—with worse ratings—from The Simpsons to Grey’s Anatomy to The Walking Dead march on like, well White Walkers. The corpse of Game of Thrones is now—spoiler alert—as cold as Jon Snow’s after season 5.

Why? Who had the motive? And who issued the order?

We Officially Have a Murder Mystery

Frankly, there isn’t a great explanation for why HBO cancelled this series. In the past, I’ve estimated that this series was making an estimated $300 million a season for HBO. (And potentially much more. Read the original, and my director’s commentary here, here and here.) Sure, HBO has a great (on paper) slate premiering the rest of this year and next year, but you know what helps launch a great slate? The biggest show on TV.

Have no doubts this series was growing. The number of viewers rose in every territory that I could find that releases data. Over 44 million were tuning in per episode in America alone, up from 9.3 million in season 1.

GoT Viewership

Of course, in some circles—like HBO creator circles—the story is what matters. Maybe the creators wanted to wrap it up nicely. Except most of the criticism of the last season related to the fact that the series felt rushed. Here is just a sampling of critics and fans complaining that season 8 felt rushed. More episodes and more seasons would have solved this problem, and who knows, by a hypothetical season 9 maybe 50 million people are tuning in in America each year!

Who kills off a money making show? Who are our suspects?

The Suspects

HBO

The buck stops there. So we should start with HBO. Their motive in killing this show would be simple: It’s the most expensive show on television. And since it is already insanely profitable, any additional profits have to be split with talent who are negotiating tougher and tougher deals with more and more back end. Each additional season is less lucrative for HBO, and if the marginal benefits meet the additional costs, well economically HBO should cancel the series.

George R.R. Martin

Listen, George, you’re a part of this. You probably didn’t finish the plot of A Song of Ice and Fire, because if you had, you’d have published that book. Which you haven’t. Maybe you told HBO to stop the series. Or you never provided enough details to fully flesh out 3 to 5 more seasons of the show.

The Actors

When in doubt, blame temperamental actors. Am I right? “Talent” is what you bitterly mumble in Hollywood when you can’t control the situation.

The motives for these suspects—and really I’m talking the big five actors of Jon nee Kit, Cersei nee Leda, Jaime nee Nikola, Daenerys nee Emilia and Tyrion nee Peter—is pretty simple: they’re sick of working on this series. Or more precisely, as artists, they’re ready to make other movies about Greek Gods, Han Solo and Terminators. (Too far?)

Further, even if you don’t mind working on a TV show for the rest of your life—including shoots in both scorching deserts and freezing tundras—you do know how valuable you are. You can’t have a GoT without a Daenerys and Jon Snow/Stark/Targaryen. Knowing that, the actors negotiated phenomenally expensive payments per episode, over $1 million per actor. They also likely demanded higher back end percentages.

The Showrunners

If the actors are sick of this series, imagine the two people at the lonely top of the creative pyramid, David Benioff and D.B. Weiss (D&D in Reddit parlance). I can’t describe adequately how insanely time consuming this series was for these two individuals. They wrote a majority of the episodes, supervised the entire production from set design to costumes and oversaw all the editing and post-production; and oh by the way (NFL announcer voice), it was the largest TV production in history. 

Meanwhile, they had plenty of opportunities to do other things, from Star Wars to a new overall deal to ideas in their notebooks we can only imagine. If you’re worth hundreds of millions of dollars (my tentative figure for D&D once they collect GoT royalties), do you want to keep spending your winters in Iceland and dealing with the most demanding fans in television history? That would be enough to say, “Eight seasons and we’re done!”

AT&T

Is there a thing that AT&T hasn’t managed to screw up since it acquired Time-Warner turned into Warner Media? Since taking over, they’ve lost the head of their movie studio, the head of HBO and plenty of other executives. Meanwhile, they named their new streaming service HBOMax, which was universally derided, and DirecTV is hemorrhaging subscribers. Oh, and AT&T is the most indebted company in America. Maybe they killed GoT to keep the losses from piling up. 

Netflix

When you discuss TV on the internet, you’re contractually obligated to mention Netflix at least once. While we give Netflix a lot of credit and blame for, they’re not involved here. 

The Evidence

Like a detective in Law & Order, it’s time to interview the witnesses. Which in this case means various articles that describes the suspect’s state of mind. Supply your own “dum dum”.

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Read My Latest at Decider: “To Binge or Not to Binge: Who Won the Battle Between Game of Thrones and Stranger Things”?

I just had a guest article published at Decider, this time asking, “Should Netflix keep binge releasing all its series?” My conclusion: not all of them. Essentially, Netflix is leaving “awareness” on the table.

Take a read and share on social media. Also, shout out to Alan Wolk, who tackled this back in the spring with Game of Thrones. I’d been toying with this idea when I read his take, and tried to update his thesis with the Stranger Things data point.

Like all long articles I write, I had two ideas that didn’t fit in the main piece. Here they are.

Has Hulu’s Weekly Release Helped?

It’s tough to say. Here’s the brutal case against it:

Image 8 - G Trends with Handmaids

Frankly, The Handmaid’s Tale is their most popular series and it is clearly the lightweight to the Game of Thrones/Stranger Things heavyweights. So let’s drop those two, and throw it up against some similar competition.

Chart 7 - Google Trends TV.png

That’s better, and you can see the same weekly interest boost that Big Little Lies and Game of Thrones had, just on a different scale. Instead, I still think that Hulu is just much, much smaller than Netflix right now. (Which, yes, isn’t breaking news.) Or about where HBO is, given that the interest almost matches something like Big Little Lies.

The counter to the binge model, though, could also be this chart. If The Handmaid’s Tale had dropped on one weekend, would Hulu even have a chance to keep it in the conversation? I don’t think so. In this case, Hulu made the right decision. This naturally leads us to ask about not just the current streamers, but the future streamers.

What Should the DAWN (Disney, Apple, Warner and NBC) Streamers Do?

Well, it depends on who you are and what your business model is, but overall, I’d be flexible. If you have a show with tons of pent up demand—like the upcoming Lord of the Rings on Amazon—consider weekly releases for the first season. Ride the potential enthusiasm to help launch weeks worth of content.

For the rest, I’d consider what type of content you have. Disney has a lot of shows that will benefit from weekly releases. Star Wars or Marvel TV series are guaranteed to drive conversation on comics and sci-f (fanboy) websites and podcasts. Weekly releases will amplify their reach from season one. For other dramas? Maybe not.

For HBO Max, they know all about launching prestige television, but HBO is about to quickly run out of days to launch all their content. In that sense, having more binge releases may make sense. Though again many of their fantasy or superhero series are destined to be stars in recap culture. For NBC, I still know so little about their platform that I won’t even speculate.

Apple may benefit the most from the binge release model. They are buying a ton of content and needs lots of buzz right from launch. Moreover, they aren’t trying to build a streaming platform per se, but a TV platform of which the content serves a subsidiary purpose. They should probably consider an approach closer to launching all series on binge, then rolling out the hits weekly for season twos.

Fine, What About Netflix?

If I were Netflix, I think they are missing something essential about how the social conversation drives a show to new heights. Right now, they have one potential mega-hit in Stranger Things. Even if they want to keep binge releases for all ten thousand other releases, they should consider carving exceptions for their biggest hits. A Stranger Things weekly release likely would have brought in new customer which they, um, need nowadays.

The key boils down to flexibility and being innovative. Innovation is not saying “Never, never, never.” It’s about understanding your customers, your business models and the attention landscape to maximize your return on assets.

Most Important Story of the Week and Other Good Reads – 2 August 2019: Sprint & T-Mobile Clear Another Hurdle

Talk about an easy choice. I told you last Friday’s news about Sprint/T-Mobile would be the most important story of the week and nothing has stepped up to replace it.

The Most Important Story of the Week – Sprint & T-Mobile is Now Very Close

The merger of a German telecom giant’s US cellular operation (T-Mobile) with a Japanese tech-telecommunications giant US cellular operation (Sprint) is almost complete. It got the Federal government’s blessing via the antitrust division of the Department of Justice not moving to block it. This merger would fundamentally reshape cellular communications in the United States. Moreover, the deal would produce some strange winners and loses. But instead of recycling the “winners and losers” conceit, let’s try “who does this help, hurt or hinder?”

Help: AT&T and Verizon

And don’t let them tell you different. As the number of companies in an industry shifts, the amount of competition decreases and hence prices (and profits) rise. Eventually, if you get to one single company, well it becomes the monopolist pricing situation. In this situation, they extract all the value they can from customers. If you imagine this as a timeline of possible cell phone concentration, well we’re two notches from complete monopoly. 

Even if AT&T and Verizon have a stronger new competitor (and don’t forget AT&T tried to buy T-Mobile this decade), going from four to three competitors is good for all the incumbents.

Help: Dish (and its new mobile provider)

Dish is probably in the most trouble of the MVPDs as they face declining video subscribers, but don’t have the ability–like cable companies–to just raise the prices on internet access. (Better margins on that business too for cable companies.) As a solution, Dish has been buying up wireless spectrum with the now revealed plan to launch their own cellular network. If this merger had been blocked, Dish would have lacked that pivot ability and would have had to spend much more to get in the cellular game. Whether Dish can truly pull this off remains to be seen, but this merger will help.

Help: Softbank

Read Bloomberg’s Tara Lachappelle for this one:

Image 2 - Softbank

And that last sentence helps reinforce that this deal helps all the incumbents as well as Sprint/T-Mobile.

Hold: 5G Implementation

The biggest explanation for “why let them merge?” seems to be “for faster 5G implementation”. The challenge is that no matter what companies say to get approval for a merger, they don’t have to really do any of it. This line from Matt Yglesias’ article on the merger stuck with me, referencing Comcast’s merger with NBC-Universal:

IMAGE 3 Vox Quote

Even if the company’s promise 5G implementation, if they fail and they’re already merged, what is the government going to do? Break them up? When was the last time that happened? Under an Elizabeth Warren administration, maybe her Department of Justice would. Under everyone else? Probably nothing would happen.

Meanwhile, the easiest way to advance giant infrastructure projects is government spending on infrastructure. If you want 5G, you just pay cellular phone companies to build it. We could debate the method (direct government spending, low interest loans, tax rebates) but government spending gets things built faster than the private sector using capital markets. This merger may accelerate 5G investment but could just as easily not because of the lack of a competition motive.

Hinder: Antitrust Enforcement

Antitrust enforcement in the Trump Presidency (and this isn’t political, but about forecasting) has been very uneven. The Department of Justice sued to stop AT&T’s merger, even though Disney’s merger with Fox was arguably larger. Then Trump’s DoJ supports the T-Mobile/Sprint merger, even as it launches investigations into big tech for monopoly power. Overall, there is just a level of incoherence that a lot of smart people have pointed out.

Hinder: Giant Tech Companies

More consolidation means more control over mobile access to the internet, with potential restrictions on the big players from Netflix to Amazon to Google, depending on the service and need to access the cloud. At least that’s my near term take. Longer term, I’m intrigued by the theory that 5G will strengthen the cloud based companies, which could benefit Amazon, Microsoft and Google. Still, consolidation in one industry increases that specific industry’s buying and selling power, which hurts the businesses that have to use that platform. Fortunately for them, the tech giants are huge.

Hinder: Regulatory Certainty

Before the Department of Justice blessed the merger, many state Attorney Generals had sued to block the merger. That lawsuit may not start until December. So this merger may go through, or may still be blocked or in limbo for years. That’s uncertainty for everyone which is bad for business.

Hurt: Either Hulu or Netflix

Both T-Mobile and Sprint have deals offering free Netflix and Hulu respectively to their customers. Invariably, this flood of subsidized customers helps boost overall subscriber numbers. Will the new T-Mobile keep both deals? Unlikely, so inevitably one side will lose those subscribers from the mobile deal.

Hurt: The Unaffiliated Streamers

Related to the subscribers is one of the next “carriage wars” I described a few weeks back. Even with 5G, mobile data and bandwidth will be a weapon mobile carriers can use against streaming companies. In other words, if you only have three mobile carriers, they can demand extra fees to carry your streaming content over it’s airwaves. In economics, that’s called rent seeking. Given their leverage, it’s hard for me to see how that doesn’t happen. Which leads to our last point…

Hurt: Customers

I already told you this above, but some combination of increased prices or decreased quality is in the offing for customers. My most likely guess is a hypothetical roll out of 5G, but at much higher prices than in a competitive industry.

Other Contenders for Most Important Story

BritBox Plans to Launch in UK

Thanks to Twitter reader Jack Genovese for this suggestion. And even though I had Tweeted out the Axios Media newsletter on this last week, I somehow ignored it myself for last week’s column. The news is that BritBox, an ITV/BBC joint streaming platform that launched in North America will launch in the UK. Which feels slightly odd that the British are now in a territory where by definition all their shows are already, but in a cord-cutting world it all works out.

Tthe update this week is that all that good BBC back catalogue–the type of stuff that helped grow Netflix early on–is going to HBO Max. Which seems weird that it wouldn’t go to BritBox itself. My guess is that AT&T just had deeper pockets and is willing to spend a la Netflix in the early days. Meanwhile, Digiday says that while everyone goes Millennial, they’ve gone older to strong results.

CBS All-Access Surging in Dish Carriage Dispute

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“Neverflix” – What Netflix’s Q2 Earnings Says About Their Future Strategy

This sub-bullet in CNBC’s “prepare you for the earnings report” article caught my attention:

QUOTE 11 - Wont catch p soonOn the surface, it’s clearly true. One bad earnings report won’t power Disney+ or HBO Max to 150 million subscribers. But as I reflected on it, the key variable is “when is soon?” By the end of the year, sure, Netflix is safe. But what about the end of 2020? Or 2021? If someone does catch up to Netflix, then the streaming wars will have a new champion.

Let’s see if the earnings report sheds any light on that question.

Strategy

Most earnings reports don’t reveal monumental shifts in strategy. This report would mostly qualify, except that Netflix did rule out a key potential revenue stream in fairly definitive terms.

“Neverflix”

At the end of last year, when it came to a Netflix show airing on a linear channel, I called Netflix the “company of Never”:

QUOTE 12 Neverflix

This earnings report doubled down on the fact that Netflix will NOT roll out advertising any time soon. I believe them and agree with this position. Adding advertisements will concretely change the user experience, likely leading to higher subscriber churn than the ad wizards begging for it expect.

I have softened on the position of “never” recently. I do appreciate Netflix’s relentless focus. A good strategy is a focused strategy, and saying “No” to efforts that divide your energy can be a wise tactic. But let’s not go overboard. For example, releasing episodes weekly.

I’d argue that decision is not material to the Netflix customer experience. Instead, binge releasing is a decision they made, and now cling to unnecessarily. Why isn’t, for example, Stranger Things 3 being released weekly? Having one series go weekly won’t lead to customer churn. There may be a 10,000 angry fans on the internet who want the binge, but again that’s noise, not signal. (I like this issue so much, I wrote an article for another publication coming out soon.)

Oh, and one other “never” that should really worry Reed Hastings.

The Never That Terrifies Me: Aggregation

If I understand the Netflix bulls correctly, the sky-high stock price—if it isn’t based on past performance being sky-high—is due to the fact that at some point, Netflix will be TV. Netflix isn’t just “another streamer”, it’s the future of TV. But is that future already in the rear view mirror?

Currently, many people get their HBO, Showtime and Starz through Amazon Channels. More will get Disney+, HBO and Showtime through Hulu. Apple will have another set of channels. Already, people experience streaming through Roku, and they added the ability to buy channels too. 

In other words, as Ben Thompson coined, the streamers are getting aggregated.

Eventually, the aggregators will offer bundles or discounts. Netflix, though, won’t be included because they have started pushing everyone to subscribe through the internet, instead of through those platforms. They did this because all those aggregators charge fees to sell the channels. I see two sub-optimal outcomes for Netflix as a result:

1. Eventually they get aggregated, which means they are “just” HBO.

2. They struggle to get awareness and presence outside the bundled aggregators.

Either choice is bad, and the sooner Netflix realizes it the better. (Hopefully more to come on this topic.)

Distribution: The good news

If avoiding digital bundlers is the downside case for Netflix, the upside case is integration with MVPD providers. Netflix announced that they will now be on AT&T’s devices that enable streaming integration. I’ve seen this work on Cox’s (via Comcast) Contour system, and it really does complement the cable bundle. Amazon Prime/Video is right behind them, and both are well ahead of the new streamers to catch up to their head start.

Competition: This is the low water mark for digital streaming.

Speaking of new SVODs, the other looming cloud over Netflix is the impending launch of the DAWNs: Disney, Apple, Warner-Media, and NBC-Universal. (Hat tip to Variety for coining.) Obviously, this will put pressure on Netflix to keep prices low to stay competitive—they are just below HBO in cost—and keep spending high to produce original content—they lap everyone when it comes to spending.

More interesting is how this will impact subscribers. While the launch of these streamers may inspire more cord cutting, which would benefit Netflix, the launch could also lead people to “cutflix” and trim the number of streaming options. But let’s move to our next section to discuss those implications.

Subscribers

How Many Subscribers Will Disney+ Grab?

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Netflix Q2 Earnings Report – A Lot Less for The Bulls

Back in the halcyon days of April, Netflix had just crushed another quarterly earnings report and it was riding high. In Decider, I said their report had something for both sides—for the haters and the lovers, skeptics and the supporters, bears and the bulls.

Well, Netflix finally had a bad earnings report.

The most fascinating thought, to me, was this one by Gene Munster:

“As much as I love the company, I just think its best days, unfortunately, are in fact behind it…I think we’re going to look back at this quarter as one of the pivotal moments in the Netflix story.”

If the laws of entropy are indeed correct, well at some point, every company’s best days are behind it. Unfortunately, we hardly ever realize this in the moment. This doesn’t mean the companies go out of business a la Blockbuster—IBM is well past it’s high water mark, but it’s still around and publicly traded—and it doesn’t even mean the stock price will decline—since stocks in general have gone up in general even faster than inflation. But at some point everything declines.

So is this the moment of Netflix’s high water market? Honestly, it may be. But we won’t know for sure until years from now.

To figure it out, I’m going to dig through Netflix’s last earnings report for the strategic insights I can find. As a reminder: I’m not here to give you stock advice. I’m here to critique strategy and Netflix’s quarterly reports are the best time to update my priors/data on Netflix’s strategy. Today, let’s discuss meta thoughts and content strategy; tomorrow I’ll go over strategy, subscriber and financial thoughts.

Meta Thoughts

At Least Netflix Gives Us Financial Data to Parse.

Let’s praise Netflix for one thing to start: producing this document in the first place. 

If Apple had bought Netflix in 2015, Netflix would have become an operating segment, which means that Apple could pick and choose selected numbers to release about their performance.  Likely they would have hidden as much as possible, they way they now hide iPhone sales. So I’d have much less data to judge them on.

To get a feel for this, take a gander at AT&T. We used to get a lot of HBO data every quarter—even as part of Warner-Media—but since AT&T acquired them, they went back to not reporting on HBO specifically. Meanwhile, if HBO were a standalone company, we’d have even more data than both previous reporting situations. The current situation leaves us guessing about their revenue, operating income and subscriber totals. We only get little tidbits if AT&T deigns to give it to us.

If we had to power rank the streaming platforms based on data released, right now it looks like this:

1. Youtube
2. Netflix
3. HBO
4. CBS All-Access
5. Hulu
6. Amazon Prime/Video/Studios

And all of them pale compared to the networks and TV channels of old who had TV ratings released every day and provided us financials. To Netflix’s credit, they give us their financials to make columns like this possible.

What is a “Netflix Killer” Anways?

Alan Wolk had a good article at TVRev clarifying that Netflix won’t actually disappear anytime soon, which is a statement I wholeheartedly agree with. Why, then, do so many headlines have “Netflix Killer” in them? 

Well, fuzziness in definitions. For a lot of folks, Netflix is one of the most over-priced companies in the world. They’re usually reacting to folks who think that Netflix is destined to conquer all of television. So you could reasonably say that any of the following end states is the “death of Netflix”, depending on your point of view:

1. Netflix suffers a few bad quarters and ends up with a price-to-earnings ratio around 20-25. (To show the gap, Netflix is currently at 123; most media firms trade between 15-20; Disney is currently a 20.5.)
2. Netflix is acquired by another larger digital company. (I recommend Facebook in this article.)
3. Netflix becomes the 3rd or 4th most subscribed OTT platform in America and/or the world.
4. Netflix goes out of business.

This is how I can think that Munster may be right—Netflix’s best days are behind them—and that Alan Wolk is right—there is a no “Netflix killer”. It depends on the definition. My personal opinion is that option 3 above is exceedingly likely, which means Netflix should valued like HBO, not like Amazon. Netflix is here to stay, but maybe not one of the most highly valued companies in the world, which may be death depending on how much stock you hold.

Content

How do you evaluate the biggest spender in Hollywood’s performance when they dole out so little data? By my count, they’ve released 17 “datecdotes” going back to the Q3 2018 earnings report. They’ve doled out a few more to news outlets over time, like this one to Reuters, this one to Variety or this tweet for Stranger Things last week. 

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Most Important Story of the Week and Other Good Reads – 28 June 2019: The Office Is Leaving Netflix

A “Most Important” column on a Thursday? What’s going on with the Entertainment Strategy Guy’s usual Friday column? Well, an out of town wedding, which means I’ll be on the road tomorrow. So enjoy an early bite at the entertainment biz apple. 

Also, next week, with a birthday, Fourth of July, and some household projects lined up, posting will be light again. However, I have a lot of fun ideas planned for July, so keep checking in.

Most Important Story of the Week – The Office Is Leaving Netflix (in 2021)

Imagine that you have a favorite restaurant. A fancy small plates restaurant with a named chef. The first time you go, the meal is incredible. Almost all the dishes are delicious. (The service is impeccable too.) And for how much food you get, well, the price isn’t too bad!

Naturally, this becomes a restaurant you visit often.

Fast forward a bit. A year or two later. The small plate place has changed its entire menu. It’s a bit more adventurous. You try a few plates, and well this time there are a few dishes that are misses. Meanwhile, your old favorites are gone. (The service is still impeccable.) Do the portions seem a bit smaller? Man, this bill is kinda pricey for what we got.

Naturally, you don’t go as often anymore. 

Since this is a business strategy site, let’s take the above two scenarios and put them in terms of the old quality drivers: the product–in this case the food–isn’t quite as good. Though part of the product–the service–is the same. Meanwhile, the price for the food (both in terms of quantity delivered and quality of dish) is much lower. Hence, you don’t go as often because it isn’t as valuable.

You see the Netflix analogy, right?

One part of Netflix’s product is just fine: the user experience. They’re way out in front of everyone else in streaming. But the prices are going up, starting in the US and expanding to the EU. These prices are going up right as the quality of the product (in terms of both size of offering and quality of individual titles) is about to potentially fall off a cliff facing. Starting about two years ago–and continuing for the next half decade or so–Netflix has lost or will lose theatrical movies from Disney and Universal, new shows from The CW, library TV content from Disney, Fox, and others (including The Office which was widely speculated about online) and more.

Let’s not pretend that losing thousands of hours of the most valuable content is nothing. You can’t lower quality while raising prices and say, “This will have no impact.” Signs are Friends and The Office are Netflix’s most valuable TV series in terms of hours viewed; I continue to believe that Disney has the most popular movies being made because…they do. (See box office.) Moreover, the biggest shows and movies aren’t just bigger by a little bit–long time readers know where I’m going with this–they are MULTIPLES more important. (Article explaining that here.)

As we move into the next wave of the streaming wars, the value of a content library will be increasingly important in separating the services. Consider this (hypothetical) situation with (made up) numbers. Netflix has a service that most customers value at a “5”. Disney offers a service most customers value at a “4”. But Netflix costs twice as much as Disney’s service…so how many keep both? How many cut the cord for Disney? What if HBO ends up with a service customers (hypothetically again) value at an “8”, but it costs even more than Netflix? What if NBC and Hulu are free…but have better content valued at “3”?

I don’t know! That’s a complex equation with too many variables to compute. Then we’ll have to repeat the exercise country by country around the world. But whereas we know one key piece in that equation absolutely—price per month isn’t a secret—we’re left guessing on how much less valuable the Netflix library will be after The Office, Friends and Disney movies (after Dreamworks movies, Fox TV series and others have already left) depart the platform. So will this hurt Netflix? Yes. How much? It remains to be seen.

(Here is where I wish I could link to my article explaining how to value content libraries (versus series, which I did here), and my take on which service has the most valuable content library. But, um, I haven’t written those yet. Yes, I’m on it. I’ll do what I can.)

Other Contenders

Kanopy Dropped by New York City Public Libraries

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Who is a “creative” in Hollywood? My Creative-to-Business Spectrum

When I worked at a studio, I found it funny that we referred to our development execs as the creatives. Not that they were creating the shows, but compared to finance or strategy folks, development execs were way more creative. They read scripts all day, took tons of pitches, provided story notes and helped decide who to cast in the show. That’s pretty creative work, when you think about it. 

So I had to cut them some slack if they couldn’t quantify everything; they’re creatives!

I say funny, because along the way I heard some talent on one of our shows—a showrunner, so the top writer/producer—refer to our development executives as the “suits” at our studio. And, they weren’t wrong?

I’d never considered the development execs the suits, but if your only point of contact with our studio is a development exec, then they seem like the business side of the house, don’t they?

It all depends on your point of view for who is a creative, doesn’t it? The director probably seems like a suit to an actor—an authoritarian bossing them around—while that same director drives the producer crazy with their creative demands. Meanwhile, the production folks are just trying to get shows made, which makes them seem like creative types to the finance folks just trying to get everyone paid. 

As I was starting my website—writing the first articles and sketching out a business plan—I set about to define my target audience. I knew I wanted to target the business side of Hollywood, but thinking about “what is business versus creative?”, I realized there isn’t just two sides on the “creative vs business” battle, but it’s a spectrum. 

Here is that spectrum that I jotted down and eventually turned into a Powerpoint slide.

Creative vs Biz Spectrum

For the most part I think everyone on this line would call everyone to their right a “suit”. Which means business. So I like this spectrum.

Some quick insights

Definitions

A lot of this depends on what I define as “creative” versus “ business” in the first place. I used those terms since that seems to echo the jargon in the industry. I debated calling this left brain-right brain, though I’ve never liked that terminology since apparently the science behind it isn’t great. I also debated some other definitions (see below), but this worked best.

And the reason I think it works is it captures two inherent tensions, in my mind. First, who cares most about making the product? The closer you get to it, the more you are talent, actively crafting the final product. A creative. On the other side, who cares most about the bottom line? Well, the business folks. If you want a rule of thumb, ask this question, “Who would care the most about going over budget?” The more you care, the more “business” you are.

I debated calling this the “qualitative versus quantitative, but that doesn’t work either.

Or you could call it the “gut versus data” debate. But that doesn’t get at the difference between the business folks and the creatives, really. Some business folks eschew numbers, sort of like the development execs I mentioned above. That’s a pretty qualitative group of people—in my experience—though they are more business than screenwriters.

Creativity is the pretty clear driver on the left. And the opposite of creativity isn’t data. Data analytics and math actually require a lot of creativity. Not that business should be the death of creativity, but it’s what we all assume.

Not Included Jobs

These jobs aren’t left out because they don’t deserve a spot, but because I ran out of space. And for some, I didn’t know where to fit them in. As is, this was a pretty clean line of the people involved in getting a piece of content out there in the world. 

I did want to get in the below the line folks—like set design and make up and wardrobe—but again couldn’t get them to fit neatly. They would be on the more creative side, though to the right of some talent because they start and end with a budget. Precisely where, I’m not sure.

I had no idea where to put production assistants. Probably near the directors—which is where many want to end up—but they aren’t really creatives, just following orders. Programming folks balance both and are probably in the middle. Script readers are likely on the creative end, as they are usually aspiring screenwriters themselves.

Did the spectrum help with the website?

Definitely. I knew my goal was to skew towards the business end of the spectrum, but this helped put what jobs are in that side of the spectrum. And how close or far they are from the creative end. While I think everyone in Hollywood could learn something from my website, the business side could probably apply the most.

And it helped convince me this is a niche I could grow. There is a gap, in my opinion, between investor-focused publishers, who mainly parse 10Ks for stock price information, and the Hollywood trades, who focus on the who is cast in what.