A rather sad tale on how the one of my favorite boogy men, Private Equity, has ruined the film industry just like it’s ruined the gaming industry, real estate and pretty much everything else it touches. To quote “Better Offline”, “The rotten demands of eternal growth.”
“In fact, they weren’t. The streaming model was based on bringing in subscribers—grabbing as much of the market as possible—rather than on earning revenue from individual shows. And big swings brought in new viewers. “It’s like a whole world of intellectuals and artists got a multibillion-dollar grant from the tech world,” Smith said. “But we mistook that, and were frankly actively gaslit into thinking that that was because they cared about art.”
“It was communicated to me,” Smith said, “that my only choice to keep the show alive was to begin all over again and write a whole new season without a green-light guarantee. So I was expected to take on that risk, when the entities that stood to profit the most from the success of my creative labor, the platform and studio, would not risk a dime.” “It was also on me,” she went on, “to kind of fluff everybody involved in the entire making of the show, from the stars to the line producer to the costume designer, etcetera, to make them believe that we’d be coming back again and prevent them, sometimes unsuccessfully, from taking other jobs.”
The film and TV industry is now controlled by only four major companies, and it is shot through with incentives to devalue the actual production of film and television. What is to be done? The most direct solution would be government intervention. If it wanted to, a presidential administration could enforce existing antitrust law, break up the conglomerates, and begin to pull entertainment companies loose from asset-management firms. It could regulate the use of financial tools, as deWaard has suggested; it could rein in private equity. The government could also increase competition directly by funding more public film and television. It could establish a universal basic income for artists and writers.
None of this is likely to happen.”
And I dug up an old illustration I did when I lived in L.A. to go with this post.