David Ellison Warns of 'Monopolistic' Netflix in Open Letter to U.K. Creatives
David Ellison, chairman and CEO of Paramount, a Skydance Corporation, issued a strong warning to the creative community and U.K. audiences in an open letter on Thursday, outlining a set of commitments if Paramount's acquisition of Warner Bros. Discovery (WBD) is successful. This deal, which Netflix has struck to purchase WBD's studios and streaming businesses, has sparked concerns about market power and competition. Ellison's letter emphasizes the importance of visual storytelling and the need to protect and preserve it for future generations.
In his letter, Ellison highlights the transformative power of films and television, transcending age, ethnicity, politics, and socio-economic status. He argues that these mediums connect people through shared experiences, entertain and inspire, transport us to new worlds, preserve history, and expand our sense of possibility. The art form, he asserts, is essential and must be safeguarded for generations to come.
Ellison's letter also addresses the potential impact of the Paramount-WBD merger on the creative industry. He emphasizes that the combination aims to strengthen competition by creating a more capable and effective rival to dominant platforms like Netflix. This, he believes, will benefit the creative community and audiences by offering greater choice and a marketplace that encourages diverse filmmaking, content creation, and theatrical exhibition.
Here's a closer look at the commitments Ellison made in the open letter:
Increased Creative Output: Ellison pledges that Paramount Studios and Warner Bros. Studios will produce a minimum of 15 high-quality feature films annually, totaling at least 30 films per year. This commitment aims to sustain job creation across the film and creative industries while delivering exceptional entertainment to audiences.
Third-Party Content and Licensing: Both studios will continue to support a vibrant third-party ecosystem by licensing their films and shows across various platforms, including their own and third-party platforms. They will also remain active buyers of content from third-party studios and independent producers.
Preserving HBO: Ellison assures that HBO will continue to operate independently under Paramount's ownership, allowing it to produce the world-class content it is renowned for.
Theatrical Commitment: Every film will receive a full theatrical release, with a minimum 45-day window globally before becoming available on paid video-on-demand (VOD). The goal is to maximize the audience for successful releases, with a window of 60-90 days or more.
Home Video Commitment: Following its theatrical run, each film will transition to the current industry standard home video window, preserving paid video-on-demand before availability on subscription streaming services.
