Hollywood Week: Bob Iger Reups, SAG-AFTRA Votes to Strike, Box Office
- Details
- Category: Entertainment News
- Published on Saturday, 15 July 2023 11:14
- Written by Janet Walker
Less than a year after The Walt Disney Company Board of Directors brought back former Chairman of the Board Bob Iger, after two dismal years of pandemic related disasters, the board has extended his contract until 2026.
"Iger, 72, returned to run the entertainment giant in November after previously serving as CEO for 15 years. At the time, he was given a two-year deal expiring in December 2024. In addition to improving Disney's profitability, he was charged with helping to find his replacement, a critical process for any company, but one that the company has bungled in recent years," The Sun reported.
Beltway Insider: Biden/NATO, Dutch Gov Falls, Abortion Rights, Yusef Salaam, Alzheimer Drug, Extreme Heat
With Iger back at the helm, the Muse House embarked on a cost cutting measure which resulted in a $5.5 billion companywide reduction of staff. Iger also led the negotiations to acquire media giant Fox Studios in 2019 for $71.3 billion.
Iger, who was the pre-pandemic darling has now become the stern bad parent as he takes control of the company and determines the fate over all The Walt Disney Company properties including Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, 20th Century Animation, and Searchlight Pictures, and has made it clear that Marvel will be reducing its output as part of the "cost-containment initiative" as the alt-universe franchise had essentially been diluting the brand.
"You pull back not just to focus, but also as part of our cost containment initiative. Spending less on what we make, and making less," Iger said Thursday," reported CNBC.com.
Bob Iger Returns to an Eager Hollywood
Hollywood Unions Strike
SAG-AFTRA, the actor's union, under the leadership of President Fran Drescher, has voted to strike in what has become a contentious determined fight for union representatives to secure the most lucrative benefits possible for their members.
"Among SAG-AFTRA's demands are increased minimum pay rates, increased streaming residuals (neither of which have kept up with inflation), and improved working conditions. Royalty payments, which are contingent on the number of a show's reruns, are no longer reliable. Streaming, which has shifted to shorter seasons over longer periods of time, has made less work available to actors," reported Time.com.
The current climate of Hollywood, which has seen the rise in streaming platform dominance, which cuts into long-term profit participation opportunities for talent, and the use of AI, which essentially tells the talent they can be replaced by technology.
Investing Intel: AI-Powered Alternative Data Driving Luxury Market Research Disruption
The use of AI changes the face of the industry and reduces talent to an afterthought instead of a must have.
"While [Bob] Iger respects the guilds' "right and their desire to get as much as they possibly can in compensation for their people," he argued that you "have to be realistic about the business environment and what this business can deliver," TheWrap reported.
SAG-AFTRA joins the Writer's Guild of America members, representing 11,500 screenwriters, who have been striking since May 2, 2023.
Executive Compensation
Executive compensation has become a sticking point on the front lines of both strikes. Drescher has pointed out the astronomical seven and eight figure salaries of Hollywood executives who are "making millions off the backs" of the talent and daily ride them to the ATM.
"It's no surprise that people outside the 1% are rising up. We are seeing strikes for better pay in many industries. The Hollywood studios fighting SAG-AFTRA and the Writers Guild of America whine about poverty, while Warner Bros Discovery paid its chief executive a compensation package in excess of $246 million in 2021," reported The Los Angeles Times.
Recently, streaming giant Netflix received a wake-up call as the shareholders rejected the multi-million-dollar compensation packages for top executives Ted Sarandos and Greg Peters. The days of no oversight are coming to an end as shareholders, even in symbolic votes, are sending loud resonating, and even boycotting, messages.
Mission Impossible – Dead Reckoning Part One Review – Electrifying, Wild, Thrilling
Box Office Continues Post Pandemic Adjustment
Tom Cruise has once again proven that over-the-top explosive action is the ticket to the post-pandemic box office, as the lasts Mission Impossible: Dead Reckoning Part One over the course of two days has racked up an impressive $63 million box office receipts.
The shortened summer tentpole season, which included the high performing Fast and Furious Fast X and John Wick Chapter 4, installments as well as the underperforming Indiana Jones: Dial of Destiny, which while not blowing away the competition continues to be a top second choice earning 260+million in box office receipts in 15 days.
Post pandemic the Box Office continues to be a concern for theaters owners, and studios, and the power of the box office has shifted to the consumer, which is forcing studios to provide more bang for the buck, including longer films, and perks.
Big chains like AMC offer perk packages like A-List which for a nominal monthly fee allow the member to see three movies a week, they also offer other perk packages. Instituting a family pack, of four passes, good for use three times a month at the same fee, would increase interest in bringing families back to the theater as well as concessions and other perks.
For now, studios, executives and movie goers are at an impasse.
Fran Drescher Image courtesy of Greg Skidmore.
