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The end of Kimmel, Netflix's $80M match, Ellison's first profile

Lucas Shaw at Bloomberg <noreply@news.bloomberg.com>

September 21, 10:01 pm

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We are rolling out the Screentime issue of Bloomberg Businessweek. While you won’t be able to get the print edition for a couple of weeks, you can read many of the articles online (with more coming next week). 

Hannah Miller and I profiled David Ellison in a story with fancy cars, helicopter rides and Hollywood drama. Brad Stone wrote about the impact that artificial intelligence will have on entertainment while Aisha Counts and Felix Gillette profiled Ms. Rachel, the queen of toddler entertainment. Eliza Brooke and I explored why it’s never been harder to get a job in Hollywood.

Loyal readers know I am a diehard fan of the Los Angeles Dodgers. I have shared some thoughts about the retirement of the legendary Clayton Kershaw on Instagram

As always, if you have any questions or story ideas, you can reach me at lshaw31@bloomberg.net

Five things you need to know

Is this the end of Jimmy Kimmel Live!?

This isn’t how Jimmy Kimmel wanted his show to end. The 57-year-old comedian has spoken openly about the imminent conclusion of Jimmy Kimmel Live!, which debuted in 2003. Kimmel was going to end the show on his terms — not this year, but soon.

Donald Trump had other ideas. Trump and his FCC chairman, Brendan Carr, saw the backlash to Kimmel’s comments on the assassination of conservative activist Charlie Kirk and sensed weakness. They attacked one of the president’s most vocal critics and his employer, threatening to revoke ABC’s broadcast licenses and urging local stations to drop the show. Local stations complied, prompting ABC to pull Jimmy Kimmel Live! off the air.

Kimmel’s suspension has became an international news story. Comedians, politicians and even some Republicans have said Carr went too far.

Kimmel and executives from Walt Disney, ABC’s owner, met Thursday to try and hash out their differences, multiple people involved in the situation told me. They remained in touch over the weekend and will meet again early next week, according to the people, who asked not to be identified discussing such a controversial matter. Disney has also been talking to those local TV broadcasters, Nexstar Media Group and Sinclair, about carrying the show if it comes back.

Disney wants Kimmel back on the air. But Chief Executive Officer Bob Iger and entertainment head Dana Walden have also asked him to tone down his political rhetoric. Kimmel won’t apologize, nor does he want to be muzzled or censored. He also doesn’t want to put 200 employees out of work or give Trump a scalp.

The outcome of these negotiations will leave a lasting mark on the legacy of Kimmel, Walden and especially Iger, one of the most respected US business executives.

Keeping Disney apolitical 

Though Iger has openly flirted with running for public office, he has always tried to keep Disney out of politics. The company makes films and TV shows designed to appeal to everyone — not just in the US but around the world.

This was easier when he first took over two decades ago. It’s much harder today. Former Disney CEO Bob Chapek — who served in between Iger’s two terms — angered company employees when he declined to weigh in against the Florida “Don’t Say Gay” bill. When he changed course and criticized the measure, it angered Republican Governor Ron DeSantis, leading to a protracted fight in the state that’s home to several Disney theme parks.

In recent years, conservatives have attacked Disney for being too woke. The company put a black star in the title role of The Little Mermaid and included a gay kiss in the Toy Story spinoff Lightyear, among other alleged sins.

Iger has attempted to bring conservatives back into Disney’s big tent. He said the company had strayed in its storytelling. He tweaked Disney’s DEI policies and settled a lawsuit with Trump late last year. This hasn’t gotten him off of Trump’s naughty list, but the company had survived a relatively drama-free year so far.

Kimmel was at first a perfect fit for Iger’s apolitical approach. The former host of The Man Show appealed to the American heartland with down-the-middle humor.  

But he has become more political in recent years, mocking Trump on his show, social media and at the Academy Awards. Iger had suggested to Kimmel on several occasions that he tone down his remarks. But neither Iger nor Disney ever broke with Kimmel by censoring him or criticizing him in public.

Kimmel has long been more than just a late-show host for Disney. He has been the face of its annual presentation to advertisers and has hosted both the Oscars and Emmy Awards. 

Kimmel’s liberal turn

Disney at first didn’t worry much about Kimmel’s comments last Monday about Kirk, in which he criticized conservatives for using the activist’s assassination to attack liberals. (Some have interpreted his comments to mean he was suggesting the shooter was a Trump supporter.) While the company had received some blowback online, Kimmel went on the air as usual a day later. He planned to go on air again Wednesday and address the bubbling controversy.

The situation changed when Carr threatened Disney in an interview with conservative pundit Benny Johnson. Station owner Nexstar Media Group, which is seeking FCC approval for its $6.2 billion takeover of broadcaster Tegna, and then told Disney it was going to take Kimmel off the air.

Kimmel still planned to address the issue on his show, but Disney worried his remarks would further inflame the situation. Walden appealed to Kimmel to adjust his remarks before the show taped on Wednesday. When the two couldn’t agree on a path forward, she made the decision to yank the show after consulting Iger.

Trump picks his targets wisely. He went after Stephen Colbert but not South Park. Both Colbert’s show and South Park air on networks owned by Paramount. But Colbert’s show loses tens of millions of dollars a year while Paramount just gave the creators of South Park a new five-year deal, as longtime Kimmel friend Bill Simmons noted on his podcast.

Trump didn’t go after Star Wars or Avatar. He went after Kimmel, whose show has been losing money and viewers.  By Thursday morning, the situation looked bleak. Kimmel was consulting his lawyer, preparing for a potential negotiation.

Disney, which is allergic to controversy, has put itself in an almost impossible position. The company alienated Kimmel by not standing with him. Yet if management puts him back on the air, the company risks angering Trump more. Sinclair said last week it wouldn’t put Kimmel back on the air.

If Disney keeps Kimmel off the air, it alienates the creative community. Former Disney CEO Michael Eisner, Andor creator Tony Gilroy and Lost co-creator Damon Lindelof have already assailed the home of Mickey Mouse. Hundreds of people have protested outside of Disney offices on both coasts. Some celebrities have even called on people to cancel Disney+, though it is unclear if this movement has had any impact.

The odds of a resolution increased at the end of last week. Trump’s action has provoked an even stronger backlash than Kimmel’s initial comments. The president threatened to punish any network that criticizes him. (Let that sentence sink in for a moment.) Criticism from once-sympathetic podcasters and members of his own party suggests Trump overplayed his hand, though admitting as much is not in his nature.

The backlash has increased pressure on Disney to get Kimmel back on the air, which means the comedian may get to decide how his show ends after all. 

The best of Screentime (and other stuff)

David Ellison’s moment in the sun

Given Larry Ellison’s wealth and proximity to President Trump, it has become common to say he is the one buying Paramount and pursuing Warner Bros. Discovery. And that is true. It’s his money behind those deals.

But that also grossly oversimplifies things. His son David has been working in entertainment since he was a teen and producing movies for nearly two decades. He is now the Chairman and CEO of Paramount Skydance. Hannah Miller and I spent the last couple months reporting out a profile of Ellison, a low-key mogul who is now one of the most powerful media figures in the world.

While I recommend you read the full Ellison piece, I want to call out a couple of themes.

  • David Ellison has spent his entire career battling the “nepo baby” label. After all, most wannabe filmmakers don't get to start by financing and appearing in a $60 million movie starring James Franco. It didn’t help that David’s sister acted like a modern-day de Medici, funding creatively daring movies that lost a lot of money. “When I first started, I got asked all the time, ‘So does he come into the office?’ ” Dana Goldberg, who joined Ellison’s Skydance in 2010, told me. People thought he was a “walking checkbook that hung out on fancy boats.”
  • As new head of Paramount, Ellison has come out of the gate spending a lot of money to send a message to Hollywood. The studio is again open for business and wants to work with the best artists. Though Ellison had some early battles with the creators of South Park and Yellowstone, he has a lot of support from the creative community.
  • Ellison has been working with management consultants on a corporate overhaul that will begin in November. The company plans to fire thousands of people, merge the technology from its three main streaming services, sell real estate and shop international TV networks. His potential deal for Warner Bros. is also controversial.
  • Ellison is a big fan of Bari Weiss and would give her a lot of freedom to overhaul CBS News, should he acquire Weiss’ Free Press. Consider the Weiss move a symbol of the larger changes to come. Ellison believes Paramount, an ailing media company, needs a shock to the system.

Coachella’s surprise announcement

The preeminent North American music festival unveiled its lineup this week, months ahead of schedule. 

Promoter Goldenvoice hasn’t explained the early drop. It never says much of anything. But the announcement allows the festival to draft off of the excitement around new work from headliners Justin Bieber and Sabrina Carpenter. (Bieber’s appearance would help him pay off his reportedly large debt to AEG, which owns Goldenvoice, after canceling his last tour.)

Coachella used to sell out without announcing the lineup. Those days are over. This year’s lineup features just six hip-hop acts — a decline of almost 70% from 2022, per Uproxx.

The No. 1 TV show in the world is…

The Netflix boxing match that pitted Canelo Alvarez against Bud Crawford. More than 41 million people tuned in to watch the fight, according to the streaming service. That is a massive number for a boxing match. 

Netflix paid about $80 million for the rights, according to two people familiar with the terms of the agreement.

Deals, deals, deals


Weekly playlist

I am really enjoying the new Parcels album.

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