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    Ann Sarnoff, Warner Bros. Chief, Is Set to Leave

    LOS ANGELES — Ann Sarnoff, the chief executive of the WarnerMedia Studios and Networks Group, will leave the company, with an announcement coming as soon as this week, three people briefed on the matter said.Ms. Sarnoff, who declined to comment, was chosen to lead Warner Bros. in 2019 despite limited Hollywood experience, becoming the first woman to hold the role. She is departing as WarnerMedia, a division of AT&T, is set to complete a merger with Discovery. Ms. Sarnoff’s boss, Jason Kilar, who has been chief executive of WarnerMedia since 2020, announced his exit on Tuesday.Like Mr. Kilar, Ms. Sarnoff found herself without a seat in the game of musical chairs that accompanies the merging of competing companies, said the people briefed on the matter, who spoke on the condition of anonymity to discuss confidential information. The Warner Bros. Discovery management structure is still unknown, but David Zaslav, the chief executive of Discovery, who will run the new company, is expected to take over at least some of Ms. Sarnoff’s portfolio. She has had a dozen direct reports.Her job has involved oversight of HBO and HBO Max; the Warner Bros. movie and television studio; several cable channels, including TBS and TNT; and a large consumer products division. Breaking down the siloed nature of some of those units has been one of Ms. Sarnoff’s accomplishments.After news of her departure became public, Mr. Zaslav said in an email that Ms. Sarnoff had been “a passionate and committed steward,” leading “with integrity, focus and hard work in bringing WarnerMedia’s businesses, brands and work force closer together.” In an email of his own, Mr. Kilar called Ms. Sarnoff a “first-tier human being” and “the definition of a selfless leader.”Ms. Sarnoff’s job security has been the subject of Hollywood gossip for months, with agents and Warner-affiliated producers insisting that she was on her way out and some members of her team insisting the opposite. That kind of speculation can be deadly in show business, with whispers congealing into conventional wisdom, often resulting in an irrecoverable position of weakness in the view of Hollywood’s creative community.To be fair, Ms. Sarnoff, whip smart and affable, never got the opportunity to really do her job. The pandemic shut down the entertainment business roughly seven months after she started. AT&T, which hired her, decided to spin off WarnerMedia last May.Before joining WarnerMedia, Ms. Sarnoff held leadership roles at Nickelodeon, the Women’s National Basketball Association, Dow Jones and BBC America. More

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    HBO and HBO Max Subscribers Seen Reaching 73 Million in 2021

    AT&T may not want HBO Max anymore, but the streaming platform is gaining traction with customers.HBO and HBO Max, home to genre-bending franchises such as “Game of Thrones” and “The Sopranos” and Hollywood blockbusters like “Wonder Woman 1984,” have added 10.7 million customers in a little over a year, with 2.8 million coming in the three months ending in June, AT&T reported on Thursday. Those figures include both HBO Max and the HBO TV channel.The company has 67.5 million subscribers to HBO and HBO Max, with 47 million in the United States. AT&T, which has struck a deal to sell its media businesses, expects HBO and HBO Max will have between 70 million and 73 million customers by the end of the year, exceeding earlier predictions.Netflix, the most popular streaming service, has 209 million subscribers, with about 66 million in the United States. It gained customers in the second quarter, but growth has considerably slowed and it lost 430,000 subscribers across the United States and Canada, a sign that cracks are beginning to show in the streamer’s long-held dominance.Speaking on the broader streaming industry, Jason Kilar, the chief executive of AT&T’s media arm, WarnerMedia, said in an interview: “The only thing I can promise you is change. There is no doubt that change is coming, and that’s appropriate because we live in a dynamic time.”WarnerMedia, which includes CNN, the Warner Bros. film and television studios and the Turner cable networks, is about to become the property of Discovery Inc., as media companies continue to gobble each other up in an effort to take on Amazon, Apple, Facebook and Google. The deal, which is expected to close around the middle of next year, will create the second-largest media business in the United States, behind the Walt Disney Company and ahead of Netflix and NBCUniversal.Mr. Kilar, who learned of the acquisition only weeks before it would be announced, could be out of a job after the deal closes.Both companies are prohibited from working together until the merger is approved by government regulators, including striking any employment agreements. Still, such deals often involve tacit arrangements about leadership. Mr. Kilar said that he had met socially with David Zaslav, the head of Discovery, but that he hadn’t broached the topic of his employment.“David and I have known each other for a long time,” he said, “and I think it’s fair to say there’s a lot of shared respect between the both of us.”Mr. Kilar, who took charge of the company only 15 months ago, said he did not have plans to step away. “There will be a point where I pick my head up next year where I think about this topic,” he continued. “But I certainly don’t intend to do it until 2022.”Jason Kilar, the chief executive of WarnerMedia, in Dallas last December.Allison V. Smith for The New York TimesMr. Kilar, who was the founding chief executive of Hulu, is considered within Hollywood to be a bit of an iconoclast. In 2011, he broadsided the industry with a now-famous manifesto on the future of entertainment that, to many, came across as a blistering critique of Hulu’s corporate ownership.The post panned traditional TV for running far too many commercials. Mr. Kilar also blasted cable, predicting that viewers would eventually drop expensive packages.After Mr. Kilar joined WarnerMedia, he quickly shuffled the executive ranks and cut costs in an effort to streamline the business.Then he angered Hollywood (again) by breaking with tradition and releasing the entire 2021 lineup of Warner Bros. films on HBO Max on the same day they were scheduled to appear in theaters. The move would have cost some of Hollywood’s biggest players back-end profits — the commission that top-flight producers and stars earn based on box office receipts — but the company quickly worked out deals to make sure they would be paid.Unlike Netflix, Disney+ and HBO Max and other new entrants into streaming have legacy agreements with cable distributors and Hollywood studios that prevent a more full-throated approach to making films and TV shows immediately available online.For Mr. Kilar, the move wasn’t about upsetting Hollywood, but rather was part of a larger strategy to goose HBO Max.It seems to have worked. The release of made-for-the-big-screen spectacles like “Godzilla vs. Kong” on HBO Max helped to increase the service’s customer rolls.Mr. Kilar intends to keep up that strategy through 2022. Warner Bros. will release 10 films exclusively for the streaming platform. And big-budget films like “The Batman,” a reimagining of the comic book character starring Robert Pattinson, will have relatively short windows in theaters of 45 days before they show up on HBO Max, according to Mr. Kilar.“That’s very, very different than the way the world operated in 2019,” he said. “Ultimately, I do think that as long as you’re thoughtful about it, change could be very, very good for not only the customers but also the people we get to work with.” More

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    Discovery and AT&T: How a Huge Media Deal Was Done

    An early-morning meeting at a Greenwich Village townhouse, under the watchful eye of Steve McQueen, was part of a monthslong campaign.In the predawn hours of April 1, David Zaslav, the chief executive of Discovery, arrived at a rented townhouse in Manhattan’s Greenwich Village — decorated with photos of rock stars and one of the actor Steve McQueen in sunglasses holding a gun — to prepare for a meeting that would soon reverberate across the American media industry. More

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    An Old-School Media Titan Pushes Aside an Upstart

    LOS ANGELES — It’s the law of the Hollywood jungle. The biggest cats win.It was only last year that Jason Kilar, a digital media executive, was named the chief executive of WarnerMedia, a division of AT&T that includes HBO, Warner Bros. and CNN. In particular, AT&T wanted Mr. Kilar to turn an upstart streaming service, HBO Max, into a Netflix-style powerhouse. More

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    AT&T-Discovery Deal Would Create a Media Juggernaut

    A merger could be announced as soon as Monday, in a deal that would offload the media business that AT&T fought to buy.Less than three years after AT&T spent over $85 billion and millions more fending off a government challenge to buy Time Warner, one of the biggest prizes in media, the phone company has decided on a completely different strategy. More

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    NBC Says It Will Not Air the Golden Globes in 2022

    The group behind the awards, the Hollywood Foreign Press Association, has been under pressure for its lack of Black members and its financial practices.NBCUniversal announced Monday that it would not broadcast the 2022 Golden Globes, an abrupt blow to the Hollywood Foreign Press Association, the organization that puts on the film and television awards show. The association relies on the money the network pays for the rights to broadcast the ceremony, and NBC’s move throws the future of the show into doubt. More

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    WarnerMedia Chief Has Become a Movie Villain to Some in Hollywood

    AdvertisementContinue reading the main storySupported byContinue reading the main storyWarnerMedia Chief Has Become a Movie Villain to Some in HollywoodJason Kilar’s decision to release 2021 movies simultaneously in theaters and on HBO Max has angered many in the industry, including some of the star filmmakers his company relies on.Jason Kilar, WarnerMedia’s chief executive since May, has been criticized by agents, theater owners and filmmakers in recent days.Credit…Allison V. Smith for The New York TimesDec. 13, 2020, 5:00 a.m. ETLOS ANGELES — When Jason Kilar began his tenure as the chief executive of Hulu in July 2007, some competitors considered the streaming service so likely to fail that they nicknamed it Clown Co. Yet Mr. Kilar, armed with both the conviction that there was a better way to watch television and the backing of two powerful corporate parents — NBCUniversal and News Corp — sequestered himself and his team in an empty Santa Monica office and got to work. He covered all the windows with newspapers, emphasizing the point that naysayers were to be ignored.“Sometimes in life, blocking out that outside noise is a really good thing to do,” he said in a recent interview.Hulu did not fail, and 13 years later Mr. Kilar (the first syllable rhymes with “sky”) is the chief executive of WarnerMedia. Suddenly, he has a lot of noise he needs to ignore.This month, Warner Bros. announced that its 17 films scheduled for 2021 — including big-budget offerings like “Dune” and “The Matrix 4” — would be released simultaneously in theaters and on the company’s struggling streaming service, HBO Max. The move, orchestrated to deal with the continuing challenges brought on by the pandemic, upended decades of precedent for the way the movie industry does business and sent Hollywood into a frenzy.Powerful talent agents and theater executives publicly blasted it. Perhaps most important, some high-profile filmmakers who have worked with Warner Bros. — and whom the studio is counting on working with again — were sharply critical. Christopher Nolan, whose “Tenet” is just the latest of his movies released by Warner, told The Hollywood Reporter, “Some of our industry’s biggest filmmakers and most important movie stars went to bed the night before thinking they were working for the greatest movie studio and woke up to find out they were working for the worst streaming service.”Denis Villeneuve, the director of “Dune,” wrote in Variety that “Warner Bros. might just have killed the ‘Dune’ franchise.” (“Dune” covers only half of the novel by Frank Herbert. The plan was for Mr. Villeneuve to complete the sci-fi tale in a sequel.) Neither Mr. Nolan nor Mr. Villeneuve, nor most of Hollywood, had been told of Warner’s plans before they were announced.The director Christopher Nolan, whose film “Tenet” was released by Warner Bros. this year, has been a fierce defender of movie theaters. Credit…Melinda Sue Gordon/Warner Bros. Entertainment, via Associated PressMr. Kilar, 49, called the pointed criticisms “painful,” adding, “We clearly have more work to do as we navigate this pandemic and the future alongside them.” But he has spent his career pushing against entrenched systems and was somewhat prepared for the outrage.“There is no situation where everyone is going to stand up and applaud,” he said. “That’s not the way innovation plays out. This is not easy, nor is it intended to be easy. When you are trying something new, you have to expect and be ready for some people who are not comfortable with change. That’s OK.”Mr. Kilar’s boss, John Stankey, the chief executive of Warner’s parent company, AT&T, also defended the strategy, calling it a “win-win-win” at a recent investor conference.Earnest and approachable, Mr. Kilar, who took over WarnerMedia in May, comes across more as an eager do-gooder than a ruthless disrupter. Both the childhood stories he tells about rushing home from school in Pennsylvania to watch “Speed Racer” and the enthusiasm he shows for upcoming projects — he called the adaptation of Lin-Manuel Miranda’s musical “In the Heights” “life affirming” — seem aimed at deflecting the growing narrative that he is the evil villain at the center of a plot to dismantle the very act of going to a theater to watch a movie. (In email exchanges after the interview, he shared a list of movies he had paid to watch in theaters before the pandemic shut things down, writing, “Movie theaters are where I have had some of my most transcendent experiences.”)WarnerMedia’s upcoming film “In the Heights,” which Mr. Kilar called “life affirming.” Credit…Macall Polay/Warner Bros. Entertainment, via Associated PressMr. Kilar has positioned WarnerMedia’s decision to release films in theaters and on streaming as a reaction to the struggles caused by the pandemic, which has shut down the majority of American theaters and prompted most studios to delay releases into next year. (One notable exception to the delay is Warner’s “Wonder Woman 1984,” which will be released in theaters and on HBO Max on Christmas Day.) He has also called the decision an accommodation for audiences, who have become more accustomed to watching films in their living rooms.But Mr. Kilar joined WarnerMedia just two months before the lackluster debut of HBO Max, and it is his job to make the service successful.There are serious challenges. HBO Max is more expensive than other streamers ($15 a month) and has been criticized for lacking any “must see” content. (The mini-series “The Flight Attendant” has recently created some buzz.) Its marketing has confused customers trying to determine the difference between it and platforms like HBO Go and HBO Now. The subscriber total stands at 12.6 million, far behind Netflix (195 million worldwide subscribers) and Disney+ (87 million). Only 30 percent of HBO subscribers have signed up.On top of that, AT&T’s balance sheet features close to $170 billion in debt, prompting some in Hollywood to wonder if the company can invest enough in content to make its objectives a reality.So it’s helpful that beneath that “Ah, shucks, I’m just a kid from Pittsburgh” veneer is a relentlessly ambitious executive who in 2011 wrote, on a Hulu blog, a widely read manifesto that criticized the television business — and that most likely played a significant role in landing him his current job. In his short time, Mr. Kilar has restructured WarnerMedia, laid off about 1,000 employees and begun ridding the company of decades-old fiefs.Business & EconomyLatest UpdatesUpdated Dec. 11, 2020, 6:16 p.m. ETSilicon Valley giant Oracle will move its headquarters to Texas.A surprise savior for Britain’s pubs: Scotch eggs.Stocks dip as Brexit and U.S. stimulus talks remain stuck with time running out.Some employees appreciate his clear direction and focused approach, while others chafe at what they see is a lack of respect for Hollywood tradition. He has become known for sending long emails, often late at night or on weekends, explaining his thinking.“If you were going to design an executive for this day and age on paper, Jason Kilar is the ideal person for the job,” Jeff Shell, the chief executive of NBCUniversal, said in an interview. The two got to know each other this past year while hashing out a deal over the “Harry Potter” series of films that Warner produced and Universal licensed for its various channels.“While it’s well known that he knows tech,” Mr. Shell added, “I do think he has both a respect for content and a relentless desire to pursue where the consumer is going. It was refreshing to see him do such a bold thing.”Mr. Kilar had never run an organization the size of WarnerMedia, nor did he deal directly with talent and other artists in his past work experience.For instance, when asked before Mr. Nolan’s public criticism how he thought the filmmaker, a fierce defender of the theatrical experience, might react to Warner’s move, Mr. Kilar was positive.“I think he would say that this is a company so thoroughly dedicated to the storyteller and the fan that they will stop at nothing to make sure they are going as far as possible to help both the storyteller and fan,” Mr. Kilar said.Whoops.Mr. Kilar does admit that the company should have been more sensitive to how its announcement would be received by actors and filmmakers. “A very important point to make — something I should have made a central part of our original communication — is we are thoughtfully approaching the economics of this situation with a guiding principle of generosity,” he said. That blind spot when dealing with creative talent may point to Mr. Kilar’s emphasis on serving the audience above all else. When making the announcement about “Wonder Woman 1984,” he wrote a memo that used the word “fan” or “fans” 13 times. His most recent one, announcing the 17-picture deal, was titled “Some Big 2021 News for Fans.”Mr. Kilar says that this commitment to the customer took hold during a childhood trip to Disney World. As his story goes, Mr. Kilar, the fourth of six children, was wowed by the company’s attention to detail, from the pristine landscaping to the lack of chewing gum on the sidewalk.A young Mr. Kilar near the entrance of Tomorrowland on a trip to Disney World. “It moved me in ways I had not been moved before,” he said.From there, Mr. Kilar became an expert on all things Walt Disney. He read the biographies, scoured the libraries for more material and finally landed an internship at the company after drawing a comic strip when his letters generated no response. He was most interested in Mr. Disney’s entrepreneurial spirit, a quality Mr. Kilar defines as “the relentless pursuit of better ways.”He sees a direct line from that childhood obsession to his decision as the chief of WarnerMedia to elevate streaming to the level of a theatrical release.The broader movie industry is not as romantic about it. Mr. Kilar’s primary mistake, as the town sees it, is not the deal itself — after all, filmmakers have been making deals with Netflix for years — but rather the nerve to ignore the other stakeholders when making the company’s decision. He is still viewed as an outsider, one who is discussing revolution but, perhaps, really just trying to prop up a faltering streaming product that needs to gain subscribers quickly to earn Wall Street’s approval.“There are some things that you can talk and talk and talk about, but it doesn’t necessarily change the outcome,” Mr. Kilar said. “I don’t think this would have been possible if we had taken months and months with conversations with every constituent. At a certain point you do need to lead. And lead with the customer top of mind and make decisions on their behalf.”AdvertisementContinue reading the main story More

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    Warner Bros. Trades Box Office for HBO Max, but Stars Still Want Their Money

    #masthead-section-label, #masthead-bar-one { display: none }What to WatchBest Movies on NetflixBest of Disney PlusBest of Amazon PrimeHoliday TVBest Netflix DocumentariesAdvertisementContinue reading the main storySupported byContinue reading the main storyTrading Box Office for Streaming, but Stars Still Want Their MoneyIf studios are no longer trying to maximize ticket sales, what will that mean for often lucrative pay packages tied to a film’s performance in theaters?The actress Gal Gadot received more than $10 million from Warner Bros. after the studio decided “Wonder Woman 1984” would not have a traditional theater release.Credit…Chris Delmas/Agence France-Presse — Getty ImagesBy More