With the changing times and video-consumption habits of users also evolving, Hollywood has been long expecting financial consolidation.
As a result, movie studios have also reduced the number of movies made every year while closing on art house-focused divisions to only make big budget blockbuster movies.
However, there’s more reason for anxiety right now as recent news has revealed that 21st Century Fox wants to buy Time Warner which could affect those who live by the traditional model.
What this merger could do is reduce the number of jobs but could clamp down on diversity as well as less competition for talent too.
What is very clear is that there will be a tremendous appetite for content with these movie studios merging and this will definitely be a cause for trouble if it goes through. Even if people intend to keep these two houses separate, it’s very unlikely that they will for much longer once they’re under the same corporate roof.
This is evident from Warner’s own acquisition of New Line Cinema 18 years ago which operated separately from Warner itself. However, in 2008, Warner got rid of New Line Cinema operations which include television, distribution and home entertainment. The number of people employed with New Line Cinema at its peak was 550 and today that number stands at 60.
Both these studios have enjoyed success for a while now but keeping the fate of employees at New Line Cinema in mind, Warner employees would rather be bought by Google instead of Fox.