David Zaslav became CEO of Warner Bros. in May 2021 when it merged with Discovery, where he was already stationed. Since his takeover, Zaslav shelved the $90 million-already-filmed Batgirl for a tax write off, rebranded HBO Max to just Max, decimated the ranks at TCM to the point where Scorsese and Spielberg demanded to speak with him, and cost the studio a reported $200 million by going ahead with the release of Summer 2023’s big flop The Flash. He’s doing well. The New York Times ran a profile on Zaslav this week, and his comments did not go unnoticed by the Hollywood community. Which is how we got this piece from The Hollywood Reporter on the irony of Zaslav now saying, comfortably post-strike, that the WGA was right in all their contract requests. Of course as a studio head, Zaslav was represented in strike negotiations by AMPTP. Hey Mr. WBD CEO: GMAFB.
Warner Bros. Discovery boss David Zaslav now admits that striking writers were correct in their demands for sweeping changes in how creatives are compensated in Hollywood.
Zaslav told The New York Times in a lengthy new profile that he has no regrets about the deal struck between studios and the Writers Guild of America for a new three-year contract on Sept. 24.
“They are right about almost everything,” Zaslav said. “So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.”
In the deal, writers received an increase in pay, minimum show staffing requirements and protections against artificial intelligence, among other gains. Yet studios resisted the writers’ demands for months, resulting in a strike that lasted a brutal 148 days and brought the industry to a near halt. In July, Disney chief Bob Iger called the writers’ proposed changes in compensation “unrealistic.”
Zaslav’s suggestion that writers might now be overpaid will likely strike some detractors as ironic given that the executive reportedly earned $246 million in compensation in 2021. WGA board member Adam Conover previously countered, “That’s about the same level as 10,000 writers are asking him to pay us collectively, all right?” For further context, if combining the Writers Guild, SAG-AFTRA and Directors Guild contracts, the total cost is “closer to the high end of our $450 million to $600 million yearly cost estimate,” Moody’s Investor Service detailed on Nov. 10.
The Times profile points out that the writers and actors strikes ultimately saved WBD plenty of money, but suggested the studio has been sluggish to greenlight new projects that could bolster the company’s bottom line amid his extremely aggressive, and controversial, cost cutting (the company disputes this, noting Warner Bros. has announced many titles for its new DC Universe, streaming projects and first-look deals). Even with executing $3 billion in cuts, the company lost $400 million in the third quarter. The board’s confidence in the executive, the story notes, remains firm.
The story follows the latest in Warners’ self-inflicted headaches: the announced shelving, then un-shelving, of another movie, Coyote vs. Acme — a live-action and animation hybrid that briefly seemed doomed to follow the same fate as last year’s Batgirl and Scoob! Holiday Haunt, which were dumped for tax write-offs. After creative community outcry, the company has since reversed course and plans to shop the film to studios and streamers, though one congressman, Texas Rep. Joaquin Castro, is now calling for the studio to be investigated for “predatory and anti-competitive” practices.
Wait, Coyote vs. Acme is back on? Carina was talking about its getting shelved only a few days ago! How quickly Zaslav crumbles amid criticism. To quote the epitome of Warner Bros. characters, the inimitable Bugs Bunny, “what a maroon!” The most asinine part, though, is Zaslav claiming he’s “never regretted overpaying for great talent.” For one thing, your record is public, sir. We see you slashing jobs at beloved networks and canning finished movies with built-in fanbases. But what really stings is the word “overpaying.” He may think he’s being subtle (he’s not). Or he thinks it will fly right over our heads (it won’t) that he’s still essentially saying writers/creatives/anyone-but-hims are getting paid too much. They’re not, Zaslav. You are. How long until the WBD Board starts to regret overpaying for their current CEO?
Photos credit: JPI Studios/Avalon, Jeffrey Mayer/Avalon and Getty
This guy is such a tool. He doesn’t care about storytelling which is why his decisions are so consistently awful. But until the Warner Bros Discovery Board realizes what a liability he is, I guess they deserve what they get.
What’s with those T-Rex arms and giant shovel hands?
Btw he’s going to run Warner/HBO into the ground and sell it off for parts. That’s after he spins the debt he amassed into a separate entity so the sale looks like pure profit and he hits bonus benchmarks and gets that golden parachute.
Eat the rich. It’s not cannibalism if they’re not human.
Yeah, he’s giving off James Aubrey vibes. Typical carnivorous, destructive exec moves. Everything really is just history repeating, I swear…https://en.wikipedia.org/wiki/James_T._Aubrey
🎯
But – are you really “overpaying”? Has their talent and dedication not earned them those rates? Ffs. How about “overpaying” studio heads. What a tool.
Seriously it’s not « overpaying » if that’s their price. He’s the no talent person being overpaid here. How does he get so many second chances?
There was a congressperson calling for investigations into the shelving of movies as an anticompetitive measure. Don’t know if that holds water, but we’ll see.
Zazlav is trash, but the real issue that I can see is that marketing has grown so that it now costs as much as the movie’s original budget. I was thinking that can’t be right, but realizing with the shortened window for streaming, which is worldwide, movies now have to get an instantaneous worldwide release. Can’t just release it in the US and if it’s a success here, push hard worldwide. When marketing costs are that high, shelving movies makes a bit of sense. Except that you could just send them straight to streaming with minimal marketing.
I’m guessing there’s going to be a move to shut whatever loophole is used for the shelving. Doesn’t deal with the marketing costs problem though.
This man is trash all day. How many writers, actors, crew lost their savings, or left the industry during this strike? I don’t know what the WB board is doing. They hired a man who HATES art and artists to come in and decimate their company. Then they’ll give him a $600 mil golden parachute.
The SAG contract is not good guys. Actors HAVE to get AI scanned. It’s not an option. If you don’t, you don’t work. That scan can then be used to put you in stuff you didn’t consent to. It’s bananas
Mee, here’s what Rolling Stone says of the contract and AI: “In the case of artificial intelligence, any actor can be digitally recreated. The contract says employment-based digital replicas are “created during a performer’s employment with their physical participation, and used to portray the performer in scenes they didn’t actually shoot.” It’s mandatory for performers to give their consent, and if the performer does not consent before they die, then consent is still needed from “an authorized representative or the Union,” and the contract needs to clearly and specifically describe the use of this replica. As far as compensation, actors are entitled to be paid “for the creation and use of their replicas, and for use in additional projects or other mediums.” They will also be paid residuals, when actors are paid for their TV or film project re-airing on cable or streaming, in the amount they would typically receive if they were acting themselves, not using replicas.”
The only thing I’ll say in his limited defense is I don’t think he was one of the intransigents during the strike. amazon and apple have tons of money—their streamers are a side gig. They could wait as long as it took. Disney was somewhat in the middle—they have their parks, merchandise etc. Netflix didn’t mind holding out because they have a huge catalog for people to binge. They’re not so reliant on original content. WB/Max needed the strike over asap. They don’t have the alternate sources of revenue the others do or the vast catalog to help keep eyes.
So glad you covered this story (and in this way—great post @Kismet). His saying “great asset” and “overpay” in the SAME SENTENCE is making my blood boil. Pay people what they’re worth, value their contributions accordingly, and save the passive-aggressive commentary, you shameless jackals.
$246 MILLION?!?
When they shove $246 million up your bum, you start to think you really know what’s what.