Rich Jaffe poses several questions to Rich Barton:
Will California try to extract concessions from the deal, particularly related to labor and AI?
What concession would be most likely extracted?
Will the studio lots be sold or kept, and if not, how will that impact production?
How can the industry solve the distribution problem, where creators are struggling to produce content due to low payment rates from platforms like YouTube, TikTok, Instagram, and Meta?
What is the key to success in this new business, according to Rich Jaffe?
Rich Barton’s responses:
California may try to extract concessions related to labor, but it’s unclear what specific changes they would seek.
The most likely concession could be a commitment to keeping some jobs or production in California, rather than outsourcing them.
If the studio lots are not sold, Paramount Global will need to make significant changes to their production strategy to remain competitive.
The solution lies in creating content that resonates with audiences and drives subscriptions, which requires taking more risks and producing high-quality material.
Barton agrees that making great content is key to success in this new business, but notes that it’s a much harder industry due to the distribution challenges.
Throughout the conversation, Rich Jaffe emphasizes the importance of understanding the distribution problem and finding ways to create compelling content that attracts audiences and drives subscriptions.