WEBVTT - Bloomberg Businessweek Weekend - October 11th, 2025 0:00:00.920 --> 0:00:05.279 This is Bloomberg Business Week Daily reporting from the magazine 0:00:05.280 --> 0:00:09.879 that helps global leaders stay ahead with insight on the people, companies, 0:00:09.920 --> 0:00:14.800 and trends shaping today's complex economy. Plus global business finance 0:00:14.840 --> 0:00:18.440 and tech news as it happens. Bloomberg Business Week Daily 0:00:18.720 --> 0:00:22.720 with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:23.520 --> 0:00:26.280 Har Everyone, Welcome to a special weekend edition of Bloomberg 0:00:26.320 --> 0:00:28.880 Business Week, looking at some of our favorite guests from 0:00:28.920 --> 0:00:31.280 the Bloomberg screen Time event in Los Angeles. 0:00:31.560 --> 0:00:35.839 Screen Time gathers the moguls, celebrities and entrepreneurs defining the 0:00:35.880 --> 0:00:38.560 next phase of pop culture. Over a day and a 0:00:38.680 --> 0:00:41.559 half in the heart of Hollywood, we discussed and debated 0:00:41.600 --> 0:00:44.239 the future of Hollywood studios, the boom, and sports and 0:00:44.280 --> 0:00:47.760 live music, and of course, the effect of AI on 0:00:47.840 --> 0:00:48.920 the creative industries. 0:00:49.200 --> 0:00:53.200 AI is everywhere. We're going to hear from actors, studio heads, investors, 0:00:53.200 --> 0:00:55.640 and even a late night host. 0:00:55.720 --> 0:00:56.800 Not just any late night hosts. 0:00:56.880 --> 0:00:58.320 No, he's been in the news a lot lately. 0:00:58.400 --> 0:01:01.000 His name rhymes with Miimmy Kimmel. 0:01:01.600 --> 0:01:05.920 That was the lame, but yes, indeed we are talking 0:01:05.959 --> 0:01:09.240 about Jimmy Kimmel. We begin though in the media space, 0:01:09.280 --> 0:01:12.560 and a conversation between our Lucas Shaw, who organized the 0:01:12.760 --> 0:01:16.760 event with the Bloomberg Live team, and the CEO of 0:01:16.760 --> 0:01:20.959 Skydance Media, David Allison, the two of them in a conversation, we. 0:01:21.000 --> 0:01:22.560 Got to start with Paramount. 0:01:23.440 --> 0:01:26.119 You chase this company for a couple of years, if 0:01:26.120 --> 0:01:26.679 not longer. 0:01:28.840 --> 0:01:30.360 If you look at what they own. 0:01:30.400 --> 0:01:32.200 They have a bunch of cable networks that have been 0:01:32.200 --> 0:01:34.120 in decline for almost as long as I've been doing 0:01:34.120 --> 0:01:37.440 my job. They have a movie studio that is, by 0:01:37.480 --> 0:01:40.279 most metrics, the last place movie studio the last few years, 0:01:40.840 --> 0:01:42.920 and a streaming service that in terms of at least 0:01:42.959 --> 0:01:43.959 engagement is sort. 0:01:43.800 --> 0:01:45.160 Of in the third tier. 0:01:45.520 --> 0:01:47.560 So why were you so interested in what do you 0:01:47.640 --> 0:01:50.320 see in the company that investors and a lot of 0:01:50.360 --> 0:01:51.560 other potential bidders did not. 0:01:52.280 --> 0:01:54.080 Yeah, no, absolutely, it's a great question. 0:01:54.200 --> 0:01:56.640 First, I just want to say we couldn't be more 0:01:56.680 --> 0:01:58.520 excited about the place that we're starting with the asset 0:01:58.560 --> 0:02:01.720 that we purchased, right, we have eighty million streaming subscribers. 0:02:02.120 --> 0:02:04.800 We have one of the best basically content libraries in 0:02:04.880 --> 0:02:08.160 existence with the Paramount and CBS. And I also think 0:02:08.160 --> 0:02:10.480 you need to distinguish when you talk about the linear business. 0:02:10.560 --> 0:02:12.160 Right, there's the cable, which. 0:02:12.040 --> 0:02:14.480 Yes, has been declined, but if you look at CBS, 0:02:14.480 --> 0:02:17.440 it actually is a remarkable asset that's been number one 0:02:17.480 --> 0:02:21.480 in prime time for seventeenth straight seasons. Incredible sports rights 0:02:21.480 --> 0:02:25.600 which we're growing and is still highly highly profitable and 0:02:25.680 --> 0:02:28.680 cash flow perspective, and I agree with you, has not 0:02:28.760 --> 0:02:31.880 been run in the best manner for the last fifteen years. 0:02:32.160 --> 0:02:34.720 And for me, that's all opportunity, an opportunity to really 0:02:35.320 --> 0:02:39.760 reignite the creative content engines, to navigate the transition that's 0:02:39.800 --> 0:02:42.480 required to really turn Paramount Plus into a leader in streaming. 0:02:42.840 --> 0:02:44.799 And we believe we have the ability to both win. 0:02:44.720 --> 0:02:49.120 In content and also become the most technologically capable media 0:02:49.120 --> 0:02:53.000 company to effectively navigate this transition. We always looked at 0:02:53.040 --> 0:02:54.520 you know, you can look at the music business ten 0:02:54.600 --> 0:02:58.040 years ago. We believe we can navigate that. We also 0:02:58.080 --> 0:03:00.760 really looked at where traditional tech company were, you know, 0:03:00.800 --> 0:03:03.400 call it ten fifteen years ago, and there is a 0:03:03.400 --> 0:03:05.919 period of time where you know, the Microsoft's. 0:03:05.440 --> 0:03:06.840 The world, the oracles of the world were. 0:03:06.760 --> 0:03:10.760 Being disrupted and those companies that actually disrupted themselves and 0:03:10.760 --> 0:03:13.240 transitions are now all traded at all time highs. We 0:03:13.280 --> 0:03:14.880 believe we have the opportunity to do the same thing. 0:03:15.280 --> 0:03:17.519 So you talked about streaming. You mentioned that the eighty 0:03:17.560 --> 0:03:21.280 million subscribers earlier. You know, you look at it, those 0:03:21.320 --> 0:03:23.359 those monthly Nielsen reports that people pay a lot of 0:03:23.400 --> 0:03:26.680 attention to. Right, are youtubes at thirteen percent of TV viewing? 0:03:26.720 --> 0:03:28.280 Netflix? Is that between eight and. 0:03:28.280 --> 0:03:31.680 Nine most months Paramount and you combine Paramount plus and 0:03:31.800 --> 0:03:33.799 Pluto it sort of sits around two percent. 0:03:33.880 --> 0:03:35.480 You can correct me if I'm off there. I think 0:03:35.480 --> 0:03:36.119 it's about right. 0:03:36.320 --> 0:03:38.840 So how do you get that up forget about thirteen 0:03:38.920 --> 0:03:41.080 or eight like Disney's in the four or five range. 0:03:41.160 --> 0:03:42.760 How do you get that up there? 0:03:42.960 --> 0:03:44.960 And you've talked about content and tech? Can you get 0:03:45.000 --> 0:03:47.440 specific on those fronts like what you're going to do? 0:03:47.840 --> 0:03:48.320 Absolutely? 0:03:48.320 --> 0:03:49.880 So, Look, one of the things we really believed in, 0:03:49.960 --> 0:03:53.080 like what I'll say, we're nine weeks in and I'm 0:03:53.120 --> 0:03:55.080 really proud of the momentum the team has been able 0:03:55.080 --> 0:03:57.120 to build over the last nine weeks. One of the 0:03:57.160 --> 0:03:59.400 things we really believe being the first own and operated 0:03:59.440 --> 0:04:02.160 studio to my knowledge since actually Walt Disney built his 0:04:02.240 --> 0:04:05.040 own shop, was that we would have the opportunity to 0:04:05.040 --> 0:04:07.800 really think long term. That means long term partnerships with 0:04:07.840 --> 0:04:10.160 talent where you can basically say, don't just think about 0:04:10.160 --> 0:04:11.400 your next movie or your next show. 0:04:11.880 --> 0:04:13.360 We want to build a relationship with. 0:04:13.320 --> 0:04:15.720 You over a decade and actually say we're going to 0:04:15.760 --> 0:04:17.360 make your next four or five movies, your next four 0:04:17.440 --> 0:04:20.320 or five series, and really think long term and invest 0:04:20.360 --> 0:04:22.760 for long term growth. The great news and when you 0:04:22.800 --> 0:04:25.360 look at we had to win in content, I think 0:04:25.360 --> 0:04:26.480 we're well on our way to being. 0:04:26.320 --> 0:04:27.040 Able to do that. 0:04:27.400 --> 0:04:29.760 If you look at specifics right, we're able to get 0:04:29.760 --> 0:04:31.760 the Obviously, the UFC deals one of the first things 0:04:31.800 --> 0:04:35.360 we announced we came over. We're incredibly proud that Activision 0:04:35.480 --> 0:04:37.719 chose to partner with us on Call of Duty, which 0:04:37.800 --> 0:04:40.080 is the most successful video game franchise of all time 0:04:40.120 --> 0:04:42.560 with five hundred million units sold. We're able to have 0:04:42.640 --> 0:04:45.360 James Mangold come over and obviously call his you know, 0:04:45.520 --> 0:04:48.000 one of the greatest filmmakers working to call Paramount Home 0:04:48.440 --> 0:04:51.040 Boulder Light, who obviously had incredible hits like Weapons earlier 0:04:51.080 --> 0:04:54.200 this year. In addition to that, you know, we've been 0:04:54.200 --> 0:04:57.920 able to secure high profile packages for streaming with basically 0:04:57.920 --> 0:05:02.040 paramount plus. And then we're also really reinvigorating what we're 0:05:02.080 --> 0:05:04.160 doing in news with CBS News with the acquisition of 0:05:04.200 --> 0:05:06.360 the Free Press. And then I think when you look 0:05:06.400 --> 0:05:09.760 at CBS's broadcast lineup, I think we have the strongest lineup, 0:05:10.120 --> 0:05:12.520 maybe arguably in the company's history. And so I think 0:05:12.520 --> 0:05:15.520 we've really successfully reinvigorated the creative content engines of the 0:05:15.560 --> 0:05:17.240 company in a really short period of time. 0:05:17.600 --> 0:05:18.920 And I think we're going to be able to do 0:05:18.960 --> 0:05:22.280 that at scale. So that's one two. 0:05:23.120 --> 0:05:25.280 You know, I think when you look at kind of 0:05:25.360 --> 0:05:28.719 ten thousand feet, Silicon Valley has done an excellent job 0:05:29.040 --> 0:05:32.040 of really coming into Hollywood. I mean the platform that 0:05:32.040 --> 0:05:35.159 Netflix has built, the platform that basically Amazon is built, 0:05:35.360 --> 0:05:36.840 and these are incredible companies. 0:05:36.800 --> 0:05:39.039 I'd say the platform that Amazon has built is not 0:05:39.279 --> 0:05:42.160 very good, but they do have the benefit of Amazon behind. 0:05:42.279 --> 0:05:44.640 Even people who work at Amazon but acknowledge the product 0:05:44.680 --> 0:05:45.279 could be better. 0:05:45.800 --> 0:05:47.480 I think when you look at the number of subscribers, 0:05:47.480 --> 0:05:51.200 I think they're doing okay. And you know, from from 0:05:51.200 --> 0:05:53.680 that standpoint, but what we really want to become. We 0:05:53.680 --> 0:05:56.599 talk about becoming the most technologically capable media company. 0:05:56.880 --> 0:05:59.520 Believe we have the capability to do that. We're bringing 0:05:59.560 --> 0:06:00.880 in the prior leadership. 0:06:01.760 --> 0:06:04.200 We just obviously hired our CPO Dan Glasgow, who was 0:06:04.279 --> 0:06:05.560 formally obviously. 0:06:05.320 --> 0:06:07.520 Running product at metaphor. 0:06:07.080 --> 0:06:09.400 Facebook, who is obviously a phenomenal leader, to come into 0:06:09.440 --> 0:06:13.400 the business. And we have really deep tech partnerships that 0:06:13.440 --> 0:06:16.479 are really going to enable, we think Paramount for the 0:06:16.520 --> 0:06:20.200 first time to actually build platforms that are competitive with Netflix, 0:06:20.200 --> 0:06:24.080 that are competitive with Amazon, and actually successfully grow in scale. 0:06:24.120 --> 0:06:25.560 And I think you've said this, You've talked about this 0:06:25.600 --> 0:06:28.279 a lot, given this moment in time that we exist in, 0:06:28.920 --> 0:06:31.359 great art and great technology need to work hand in 0:06:31.360 --> 0:06:34.599 hand together to effectuate the transition the overall businesses in 0:06:34.800 --> 0:06:35.200 Is there. 0:06:35.080 --> 0:06:38.760 Some things like concrete about the Paramount plus platform right 0:06:38.760 --> 0:06:41.800 now that you think is clearly substandard, And how like 0:06:41.880 --> 0:06:44.279 I've heard you talk about the recommendation algorithm right and 0:06:44.320 --> 0:06:46.600 how you think that could be better. Does having us 0:06:46.680 --> 0:06:49.640 a better recommendation algorithm really going to like bring in 0:06:49.800 --> 0:06:52.280 ten million new customers or make people spend an extra 0:06:52.320 --> 0:06:54.440 two hours a day with your with your service. 0:06:54.880 --> 0:06:56.279 So you have to do two things. 0:06:56.320 --> 0:06:59.279 One like, let's just talk about the asset that we acquired. 0:06:59.320 --> 0:07:00.159 We inherited right. 0:07:00.520 --> 0:07:05.360 Paramount as it exists today operates three streaming platforms, three 0:07:05.440 --> 0:07:09.320 separate stack tech stacks on two different clouds, which is 0:07:09.400 --> 0:07:14.240 both inefficient and wildly expensive. So if you actually said 0:07:14.240 --> 0:07:16.920 I'm gonna if I had unlimited resources, this is not 0:07:16.960 --> 0:07:17.240 how you do. 0:07:17.440 --> 0:07:20.440 For those who don't follow, the three services are Paramount Plus, 0:07:20.440 --> 0:07:22.600 Pluto TV, and b BT plus correct. 0:07:22.920 --> 0:07:25.800 So we're in the process right now of basically consolidating 0:07:25.840 --> 0:07:28.040 all of those onto a single into a single stack, 0:07:28.440 --> 0:07:33.040 which will both significantly improve the operational capabilities of the product, 0:07:33.080 --> 0:07:35.640 and we're doing a lot to basically overhaul every single 0:07:35.680 --> 0:07:38.760 aspect of the stack. But also the more data that 0:07:38.800 --> 0:07:40.800 you obviously get in there, which is the more users, 0:07:41.080 --> 0:07:41.840 the better you're going to. 0:07:41.840 --> 0:07:42.920 Be able to recommend content. 0:07:43.320 --> 0:07:47.120 So we are we are definitely overhauling basically the product 0:07:47.200 --> 0:07:50.360 right now. But in addition to that, to me, technology 0:07:50.400 --> 0:07:52.280 is really in service of the content, not the other 0:07:52.320 --> 0:07:56.400 way around, and we're going to make significantly more shows 0:07:56.920 --> 0:08:00.080 at Paramount Plus. We are investing in sports rights, and 0:08:00.080 --> 0:08:02.320 when you look at the acquisition of the UFC, that 0:08:02.480 --> 0:08:06.680 is the largest sport that is basically not shared between 0:08:06.760 --> 0:08:10.600 multiple platforms, and to basically, and they have one hundred 0:08:10.600 --> 0:08:13.760 million fans. They've grown twenty five percent from twenty nineteen 0:08:13.800 --> 0:08:17.000 to date. They grew at that level sitting behind a 0:08:17.040 --> 0:08:20.240 double paywall. So we think when you eliminate that double paywall, 0:08:20.280 --> 0:08:21.800 it's going to open it up and make it much 0:08:21.800 --> 0:08:25.600 more accessible. Literally, one paper you fight is what a 0:08:25.600 --> 0:08:28.720 Paramount Plus subscription is. And then basically those hundred million 0:08:28.720 --> 0:08:30.040 fans are going to be able to get access to 0:08:30.080 --> 0:08:32.520 everything they love. And in addition to that, when you 0:08:32.520 --> 0:08:34.560 look at the overall sports strategy, which cannot be more 0:08:34.600 --> 0:08:38.520 important to us, Paramount had a really strong fall and 0:08:38.640 --> 0:08:41.400 spring sports calendar, but really light in the summer. 0:08:41.480 --> 0:08:43.600 The football In the fall, you have March Madness. 0:08:43.600 --> 0:08:46.720 In the spring, you have the Masters, which which we're 0:08:46.760 --> 0:08:49.400 incredibly proud to be partners with, and now with UFC, 0:08:49.520 --> 0:08:52.040 we have a year long sports strategy and that in 0:08:52.040 --> 0:08:54.120 addition to all of the new originals that we're going 0:08:54.160 --> 0:08:56.120 to be making for P plus, there's going to be 0:08:56.120 --> 0:08:57.920 more content, there's going to be a better tech product 0:08:57.960 --> 0:09:00.720 that's going to yield additional engage and scale. 0:09:00.880 --> 0:09:02.800 So I won't I have a follow up on that, 0:09:02.840 --> 0:09:05.199 but I'm curious because you mentioned Pluto. You've talked a 0:09:05.240 --> 0:09:07.920 lot about combining the back end. How likely is it 0:09:07.960 --> 0:09:11.320 that you just combine all those services into one consumer 0:09:11.360 --> 0:09:13.480 facing app where if you want to watch Pluto, you're 0:09:13.520 --> 0:09:14.640 just going to Paramount Plus. 0:09:14.880 --> 0:09:18.920 So right now we're basically combining the back the back end. 0:09:20.840 --> 0:09:23.199 It's certainly something we've discussed and explore, but not. 0:09:23.160 --> 0:09:24.319 Something we're planning to do right now. 0:09:24.440 --> 0:09:27.959 Got it? And you're in the like the fun spending money, 0:09:27.960 --> 0:09:30.160 showing people you're here to reinvigorate the company phase. 0:09:30.240 --> 0:09:31.720 When does the less fun part? 0:09:33.960 --> 0:09:37.320 So, look, one of the things that I think is 0:09:37.320 --> 0:09:41.000 actually important is this business can be operated a lot 0:09:41.040 --> 0:09:44.120 more efficiently than was operated in the past. And you know, 0:09:44.120 --> 0:09:47.000 we've obviously announced you know, two billion dollars and obviously 0:09:47.080 --> 0:09:51.240 run rate synergies. We've said we're going to meaningfully obviously 0:09:51.280 --> 0:09:55.520 exceed those targets, and from our perspective, we intend to 0:09:55.559 --> 0:09:58.720 do that as quickly as possible, so that we can 0:09:58.760 --> 0:10:01.000 basically get that behind us then have the entire team 0:10:01.040 --> 0:10:01.839 just building for the future. 0:10:01.880 --> 0:10:03.880 So does that do cuts start before the end of 0:10:03.880 --> 0:10:04.200 the year. 0:10:06.360 --> 0:10:07.560 You know, I can't answer that question. 0:10:08.840 --> 0:10:11.120 Let's go to a couple other questions you probably can't answer. 0:10:13.200 --> 0:10:15.760 Have you we're going there already, all right, Have you 0:10:15.800 --> 0:10:18.040 made an offer yet for Warner Brothers Discovery? 0:10:18.200 --> 0:10:19.640 All right, we'll talk about tennis. 0:10:21.440 --> 0:10:22.640 We'll get to tennis at the end. 0:10:23.200 --> 0:10:24.439 I already I don't know if you saw it. 0:10:24.480 --> 0:10:26.160 I asked Greg Peters who is better at tennis? 0:10:26.200 --> 0:10:26.880 Him or Bill Gate. 0:10:26.960 --> 0:10:29.559 You can probably answer that question he dodged, But. 0:10:30.600 --> 0:10:32.240 The adotention, I actually can't ass attention. 0:10:32.240 --> 0:10:33.599 I've never seen either of them play tennis, so I 0:10:33.600 --> 0:10:34.720 don't feel equipped to be able to do. 0:10:35.080 --> 0:10:40.160 Let's go back to the offer for Warner Brothers Discovery. 0:10:40.200 --> 0:10:42.840 So so, look, we're a publicly traded company, and I 0:10:42.880 --> 0:10:44.319 think you know, we're not in a position to be 0:10:44.320 --> 0:10:47.720 able to comment on rumors speculation of any kind, because 0:10:47.720 --> 0:10:50.160 there's a couple of rumors and speculations obviously out there 0:10:50.200 --> 0:10:51.760 in terms of what we may or may not be doing. 0:10:52.360 --> 0:10:54.160 But look, what I can't comment on is people to 0:10:54.240 --> 0:10:57.920 kind of understand our mindset, right, And I actually think, 0:10:58.040 --> 0:11:01.720 you know, ironically, it was David Zaslov last year that said, 0:11:02.080 --> 0:11:05.880 you know, consolidation the media business is important, and the 0:11:05.920 --> 0:11:10.360 way we approach everything is first and foremost what's good 0:11:10.400 --> 0:11:13.800 for the talent community, what's good for our shareholders and 0:11:13.880 --> 0:11:18.640 value creation, and what's good for basically storytelling at large. 0:11:18.920 --> 0:11:23.199 And so from our standpoint, whether we were approach any acquisition, 0:11:23.280 --> 0:11:25.960 I actually do think there's a lot of options out 0:11:25.960 --> 0:11:28.320 there in terms of what actually might be actionable in 0:11:28.320 --> 0:11:31.240 the near future. We would approach that through the lens 0:11:31.280 --> 0:11:34.480 of wanting to make more, not less, you know. 0:11:34.559 --> 0:11:37.440 Because the natural conclusion if you were to merge with 0:11:37.480 --> 0:11:40.080 one of those Discovery is you take two companies that 0:11:40.160 --> 0:11:42.760 combines I don't remember the content's been between the two 0:11:42.760 --> 0:11:45.319 of them, but spend billions of dollars. And much as 0:11:45.480 --> 0:11:48.079 you're combining Guidance and Paramount, you take money out. You 0:11:48.120 --> 0:11:50.480 would take money out there. Companies that merge don't tend 0:11:50.480 --> 0:11:52.199 to spend more money on the other side of it. 0:11:52.320 --> 0:11:53.800 So what I would say, and again I'm not going 0:11:53.840 --> 0:11:56.880 to comment on one of brothers Discovery, but you know 0:11:57.840 --> 0:12:00.680 you said it when you talked about Paramount actually need 0:12:00.720 --> 0:12:03.640 more content to yield more engagement, and so we would 0:12:03.679 --> 0:12:06.600 actually want to be in the business throughout whatever lens 0:12:06.600 --> 0:12:11.280 we're looking at of actually producing more, you know, more movies, 0:12:11.360 --> 0:12:14.280 more television series, more to get to scale, because you 0:12:14.400 --> 0:12:17.880 need that content, you need that great storytelling to yield engagement. 0:12:18.480 --> 0:12:21.800 And from that standpoint, we're also in the business first 0:12:21.840 --> 0:12:25.760 and foremost of creating long term value creation. And you know, 0:12:25.800 --> 0:12:28.439 in one of the things I think I hope we've 0:12:28.520 --> 0:12:31.360 proven obviously with our family is we are in the 0:12:31.360 --> 0:12:33.920 business of building long term value for shareholders, and I 0:12:33.920 --> 0:12:35.000 think we've done that successfully. 0:12:35.080 --> 0:12:38.720 That's Guy Dance Media CEO David Ellison speaking with Bloomberg's 0:12:38.840 --> 0:12:39.480 Lucas Shaw. 0:12:40.000 --> 0:12:43.040 Coming up, more from our conversations at the Bloomberg screen 0:12:43.080 --> 0:12:45.800 Time event in Los Angeles. Up next, we'll hear from 0:12:45.920 --> 0:12:49.559 Warner Brothers co chairs and co CEOs Pam Abdy and 0:12:49.600 --> 0:12:50.320 Mike de Luca. 0:12:50.679 --> 0:12:51.880 This is Bloomberg. 0:12:55.960 --> 0:13:00.160 This is Bloomberg Business Week Daily with Carol Masser and 0:13:00.240 --> 0:13:02.760 Tim Steneveek on Bloomberg Radio. 0:13:03.840 --> 0:13:06.000 We are back on Bloomberg Business Week looking at some 0:13:06.080 --> 0:13:08.800 of our favorite guests from the Bloomberg screen Time event 0:13:09.120 --> 0:13:11.119 held this past week in Los Angeles. 0:13:11.520 --> 0:13:13.920 Our Lucas Shaw sat down with the duo behind this 0:13:14.000 --> 0:13:18.719 year's blockbusters, including Sinners, f One, a Minecraft movie, and Weapons. 0:13:19.120 --> 0:13:22.200 Warner Brothers Motion Picture chiefs Pam Abde and Mike de Luca. 0:13:22.559 --> 0:13:25.040 They break down the high stakes business of filmmaking and 0:13:25.080 --> 0:13:28.720 an era of shifting audience tastes and streaming disruption. 0:13:29.040 --> 0:13:30.480 I want to start on the state of the movie 0:13:30.520 --> 0:13:32.520 business because you were two of the biggest semophiles in 0:13:32.559 --> 0:13:36.679 the world, I'd say, and I was listening to an 0:13:36.679 --> 0:13:39.240 appearance you guys made on this SmartLess podcast earlier this year, 0:13:39.240 --> 0:13:41.000 and you were talking about how there are not enough 0:13:41.080 --> 0:13:44.400 movies being made and you're sort of I was struck 0:13:44.440 --> 0:13:47.640 because you guys run a movie studio that would seem 0:13:47.679 --> 0:13:50.200 to be within your power to decide how many movies 0:13:50.240 --> 0:13:54.080 you make, So why don't you and your peers make 0:13:54.160 --> 0:13:54.760 more movies? 0:13:55.559 --> 0:13:57.640 Well, we have made more movies, so you know, are 0:13:57.800 --> 0:13:59.240 one of the first things we were tasked to do 0:13:59.280 --> 0:14:01.120 when we got to the study it was increased the output, 0:14:01.200 --> 0:14:03.319 and I think we increased it from I think when 0:14:03.320 --> 0:14:05.200 we got there it was four to six movies and 0:14:05.240 --> 0:14:07.840 we're up to twelve this year, heading towards eighteen hopefully. 0:14:07.880 --> 0:14:09.480 So we're doing our part, I feel like. 0:14:10.000 --> 0:14:12.000 And one of the most amazing things the reason we're 0:14:12.040 --> 0:14:15.720 so optimistic about our business is Warner Brothers achieved four 0:14:15.760 --> 0:14:18.640 billion in worldwide gross this year, the first time since 0:14:18.679 --> 0:14:21.280 twenty nineteen, so at least in terms of our studio, 0:14:21.280 --> 0:14:24.400 we're already at pre pandemic levels. But I think the 0:14:24.440 --> 0:14:27.400 most significant metric is we did it on nine less 0:14:27.440 --> 0:14:30.720 movies than twenty nineteen. We did it on eleven movies, 0:14:30.760 --> 0:14:33.280 and they had twenty shots at it, which I think 0:14:33.280 --> 0:14:36.040 shows that there's a robust theatrical audience just waiting for 0:14:36.120 --> 0:14:37.320 more movies to get made. 0:14:37.560 --> 0:14:38.720 They always talk about, you. 0:14:38.640 --> 0:14:41.440 Know, box offices down anywhere from twenty five to thirty percent, 0:14:41.880 --> 0:14:45.160 but there's also twenty five percent less movies in the marketplace. 0:14:45.160 --> 0:14:47.200 So that's why we always feel like it's a it's 0:14:47.200 --> 0:14:49.480 a glass half full situation, and if there were more movies, 0:14:49.480 --> 0:14:50.920 you'd see that box office climb. 0:14:51.040 --> 0:14:53.000 Well. One of the reasons that I assume that the 0:14:53.440 --> 0:14:57.400 number of movies is down is how expensive it has 0:14:57.440 --> 0:14:59.720 become to make them. So, as someone who's not part 0:14:59.720 --> 0:15:02.400 of the the sausage making process, why does it feel 0:15:02.400 --> 0:15:05.720 like every major studio release now costs two hundred million dollars? 0:15:06.200 --> 0:15:07.600 I don't think every. 0:15:07.520 --> 0:15:10.680 Weapons did not, But can we agree that the cost 0:15:10.720 --> 0:15:12.240 of making movies has gone up. 0:15:12.200 --> 0:15:14.320 A lot, sure, we can absolutely agree. I think the 0:15:14.320 --> 0:15:18.040 way we look at it is a diverse slate, right, 0:15:18.080 --> 0:15:21.720 and we look at different metrics and different size movies, 0:15:21.960 --> 0:15:24.600 and it's really about balancing the slates. So there's no 0:15:24.640 --> 0:15:27.800 one size fits all approach to budgeting of film. You 0:15:27.800 --> 0:15:29.560 have to meet with the filmmaker. You have to look 0:15:29.560 --> 0:15:31.920 at what the story is, who the audience is, what 0:15:32.120 --> 0:15:35.240 genre it is. We share it with our teams around 0:15:35.240 --> 0:15:36.800 the world, and we all come up with the right 0:15:36.840 --> 0:15:39.520 size budget for that film. And it's really it really 0:15:39.600 --> 0:15:41.000 leads with being based on. 0:15:40.960 --> 0:15:42.119 The vision of the filmmaker. 0:15:42.520 --> 0:15:42.680 Right. 0:15:42.760 --> 0:15:45.280 Okay, that does make me want to I wasn't going 0:15:45.360 --> 0:15:46.920 to get here yet, but I want to zoom ahead 0:15:46.960 --> 0:15:50.280 to the movie you just released, one battle after another, 0:15:50.280 --> 0:15:51.480 Paul Thomas Aason movie. 0:15:51.640 --> 0:15:52.160 Great movie. 0:15:52.160 --> 0:15:55.280 Everyone thinks it's, if not the front runner for Best Picture, 0:15:55.320 --> 0:15:58.200 one of them. You gave one hundred and thirty five 0:15:58.240 --> 0:16:00.560 million dollar budget to a director who never had a 0:16:00.600 --> 0:16:03.040 movie gross one hundred million dollars. Can you walk me 0:16:03.120 --> 0:16:06.000 through how that worked in your the formula you were 0:16:06.040 --> 0:16:07.680 just talking about. 0:16:07.400 --> 0:16:10.880 Not confirming that that's the budget. However, to point take 0:16:10.920 --> 0:16:13.560 in that it's certainly Paul's most expensive movie. And I 0:16:13.600 --> 0:16:15.440 think when you know, when we all read it in 0:16:15.480 --> 0:16:19.080 this Pam set in our organization, you know, we are 0:16:19.120 --> 0:16:23.040 really big on sharing the script with our teams, both 0:16:23.040 --> 0:16:25.720 international domestic. Everybody who's got a stake in that movie's 0:16:25.720 --> 0:16:29.080 success gets to weigh in, and we arrive as many 0:16:29.120 --> 0:16:31.080 studios as all the studios do with a model that 0:16:31.160 --> 0:16:34.000 basically informs the green light process. So we read this 0:16:34.000 --> 0:16:36.240 two and a half years ago as a satirical action 0:16:36.360 --> 0:16:39.800 comedy with Leo, and you know, because it read like 0:16:39.840 --> 0:16:42.840 the masterpiece it is, we leaned in, like if we 0:16:42.560 --> 0:16:45.080 we set up the kind of you know, rigorous analysis 0:16:45.080 --> 0:16:47.760 that enables us to trigger a green light, but if 0:16:47.800 --> 0:16:50.440 it's a if it's a you know, a bold provocative swing, 0:16:51.200 --> 0:16:53.760 we're just our dna is to lean in and give 0:16:53.760 --> 0:16:54.440 it a shot. 0:16:54.600 --> 0:16:56.920 So Leo's comps kind. 0:16:56.720 --> 0:16:59.360 Of gave it the credibility to say, well, we can 0:16:59.440 --> 0:17:02.280 aim for the high case. But really what carried the 0:17:02.320 --> 0:17:04.080 day was just it read like the movie it is. 0:17:04.080 --> 0:17:05.520 It just read like a masterpiece. 0:17:05.560 --> 0:17:09.000 And one of the overriding operating principles at the studio 0:17:09.160 --> 0:17:12.120 is to is to continue that legacy of warners whether 0:17:12.160 --> 0:17:14.680 it was Stanley Kubrick or Quean Eastwood or Ben Affleck. 0:17:14.760 --> 0:17:17.320 But get into these situations with the best filmmakers of 0:17:17.359 --> 0:17:19.600 the day and try to bring people, try to bring 0:17:19.680 --> 0:17:23.360 audiences or a star for originality, you know, new masterpieces, 0:17:23.400 --> 0:17:25.520 new modern masterpieces, and that's that's what we feel like 0:17:25.560 --> 0:17:26.320 Paul's given us. 0:17:26.400 --> 0:17:28.560 So we're going to set aside the masterpiece part of 0:17:28.560 --> 0:17:30.560 the conversation for a second. Do you think that the 0:17:30.560 --> 0:17:32.359 movie will be a commercial success? 0:17:32.520 --> 0:17:32.880 I do. 0:17:33.040 --> 0:17:35.919 I'm a believer. It's a marathon with this movie, not 0:17:36.000 --> 0:17:38.119 a sprint. I think it's going to lag out to 0:17:38.200 --> 0:17:39.440 a number that we'll be happy with. 0:17:39.600 --> 0:17:42.040 Yeah, but it's hard. We can't divorce. 0:17:42.080 --> 0:17:44.880 I'd be lying if I said we're divorcing it from 0:17:45.040 --> 0:17:47.960 the pride we have in it, and you know it's 0:17:48.119 --> 0:17:51.840 it's it. And also with Weapons and Centers, what those 0:17:51.840 --> 0:17:54.960 three movies say about the chances for original films to 0:17:54.960 --> 0:17:57.160 get made, you know, from the best directors working today. 0:17:57.160 --> 0:17:59.000