After years of contraction in the number of studios producing new movies, the tide seems to have turned with the involvement of Silicon Valley. Since theaters reopened after COVID, the five major studios — Disney, Warner Bros., Universal, Paramount, and Sony —have been the source of most wide-release movies. This is a significantly lower number than before the pandemic, primarily due to consolidation by the major studios.
However, now Silicon Valley has stepped in with support for major theatrical releases, either by funding legacy studios or by offering movies under their brand. The Hollywood Reporter analyzed this dynamic with a focus on the example of David Ellison and his Skydance Media production company.
Ellison is the son of tech billionaire Larry Ellison and is on the verge of completing an acquisition of Paramount Studios. Both Apple and Amazon have also become players, announcing their intention to spend at least $1B annually to create movies that will begin as theatrical releases. These investments are intended to increase brand awareness as a leading movie studio, and attract subscribers to Apple TV+ and Amazon Prime Video.
