The IP Era’s Venture Capital Philosophy Has Poisoned Movies

Among so many heinous problems trickling down on our heads from the top of the film industry is that of intellectual property. It’s not that adaptations are new, but that the ability to make a living by creating anything else has only recently been destroyed. IP obsession has killed the mid-budget movie, it’s killed the movie star, and it’s coming for the rest of the industry. This is as much a problem for audiences as for filmmakers (at any level), and it all comes from the same place: Unchecked greed, and the familiarity with which we accept it.
Tidy, consistent, sustainable profits—the kind of thing generated by movie studios that once offered a diverse slate of reasonably budgeted adult dramas, teen-date rom-coms, family films, and fence-swinging art movies—are a thing of the past for those in charge of the industry. Other forces from the entertainment world are certainly at play, specifically the rise of prestige TV as a destination for what the movies have abandoned. But the pivot to the IP Era feels simple, because it feels familiar. It’s because tidy, consistent, sustainable profits aren’t enough. There must be growth. There must be domination. There must be Shared Universes.
This attitude goes beyond being risk-averse. Risk aversion isn’t new. Single-minded speculation, trying to alchemize IP into gold, is.
The management decisions keeping workers from their fair pay—as described by Writers Guild of America board member John Rogers in a thread about the current strike—are the same ones milking old IP for all it’s worth: “The new robber barons of Hollywood are on a suicide run.” This shift is tech-bro economics, Wall Street-fellating “vulture capitalism” here to feast on the industry, not further it.
“All we needed was five million dollars a year in revenues, and we would have made money for everyone,” said Jeremy Neuner. “That’s enough to earn a living and buy a house and put your kids through school. But no one wanted something that just made a healthy living. They all wanted to find the next Zuckerberg.” That’s not someone mourning manageably-budgeted original movies like Michael Clayton, but rather a competitor of WeWork, whose business fell apart thanks to the unrealistic investment ideals of venture capitalists. But replace “Zuckerberg” with “MCU” and you can understand what happened to movies.
Sure, an executive could gamble on a few million dollars on an “idea” from a “writer.” They could also flip the big Binder O’ Properties to a random page, do a rail of coke off of it and spend $100 million to reboot whatever’s underneath. A new Ghostbusters? Another go at the Dark Universe? Let’s do it! Monopolies, even monopolies built on unsustainable properties—on the slums of Baltic and Mediterranean Avenues, in board game terms—have the potential to be more than profitable. They can define decades of strategy. Investors like that. It feels stable yet exciting, predictable yet potentially limitless.
“We’re going to focus on franchises,” Warner Bros. Discovery CEO David Zaslav assured investors. “We haven’t had a Superman movie in 13 years. We haven’t done a Harry Potter in 15 years.”
It doesn’t matter if viewers are burned out or if the franchise is inextricably linked to a raging asshole. There’s recognizable media out there just asking to be exploited into an empire, one that could grow and grow and grow. If it eventually burns like Rome—say, if you’re former Disney CEO Bob Chapek and your streaming business continues to bleed money despite releasing bad franchise movies directly onto it—then you can simply fiddle your little heart out, floating away on your golden parachute. Naturally, studio leadership favors this approach, which in turn sets the precedent for the only kinds of movies their companies finance, market and stuff into theaters.
We, the country’s moviegoing public, have already been trained to understand this.
Pretty consistently, folks go to the movies when they recognize something and stay home when they don’t. Looking at the past 10 years of box office Top 10s, it’s far faster to note which movies aren’t based on a pre-existing property: Frozen, Gravity, Inside Out, Zootopia, The Secret Life of Pets, Sing, Onward and Tenet.
That’s it. Eight movies out of 100.