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The studios, now beholden to much larger companies and financial institutions, became subject to oversight focused on short-term horizons. This summer, I spoke with the head of a film and TV studio purchased by a private-equity firm in recent years. “It used to be there were these big, crusty, old legacy companies that had a longer-term view,” he said, “that could absorb losses, and could take risks. But now everything is driven by quarterly results. The only thing that matters is the next board meeting. You don’t make any decisions that have long-term benefits. You’re always just thinking about, ‘How do I meet my numbers?’ ” Efficiency and risk avoidance began to run the game.
— "The Life and Death of Hollywood: |