(RETROACTIVE POST) Hello everyone, and we’re back. We’re going right into it.
State of the Industry
Hollywood is doing its last-ditch effort to survive, and the players have noticed and moved accordingly. MACRO and Sony Pictures Entertainment has signed a multi-year picture deal, which is great if you understand that Charles D. King and the wonderful team behind the studio and management firm has invested in ensuring that the marginalized voices are presented and represented on screen. When you’re faced with looming mergers like Paramount and Warner Bros., you have to be strategic and scale in a way that the studios, like Sony, are doing the work to ensure we have a motion picture business. You just have to pay attention to who’s still investing in diversity on your screens and giving opportunities, versus who’s taking them away. We have to stay in the know.
The AI Bubble
You’ve also seen Verticals on the rise; we discussed that in a previous report. The lambasting of AI, the support of it, and the mixed feelings are all contributing to a conversation I want to have about the ethical use of artificial intelligence. Artificial intelligence, when it’s not devastating communities, replacing jobs, and being radically NOT creative.
Hanna Einbinder, actress and comedienne (Hacks, Everything Must Go), made some awesome comments about how there are people who lack creativity coming in and using AI as an art form. And the truth is, she’s right. There are AI artists who use it to sing, make art, and write. The thing is, AI cannot replace a soul. The soul is etched into every fiber of the work we have done.
My idea of ethical use of AI would be no AI for actors. Point Blank. Period!
For Directors and Producers: The best use of AI would be a few things.
- Onboarding App: All-in-one digital app with copies of purchase orders, our budget and schedule, copies of the D.O.O.Ds (Day out of Days), and onboarding paperwork for each contractor and employee.
- The app will generate the contracts based on prior source material for onboarding; case specifics will need to be reviewed and approved by a lawyer, with a turnaround window, and email updates from code for each person. I sometimes use AI to help create contracts, and then I get legal review from partners.
This would have the DocuSign element added so that once all paperwork is in, everyone is directed to show up to prep day. My good friend and business partner Jordan Michael proposed this awesome idea: Who’s making an app with AI assistance for the filmmaker? Did this replace any jobs? No! And that’s the point; we’re supposed to make them efficient, easier, and manageable, not take away the roles in place.
I was in a Zoom with Steven Golus, who was doing a demonstration on AI integration in the AdTech and MarTech space. Some people in the media space are also creative professionals who, on our side of the business, have concerns about AI. Mr. Golus did mention that this kind of stuff will replace jobs, destroy them, but there is an opportunity. I reassured some in the chat that if we do our jobs as people with the power, we can fight this. In fact, I think we need to implement a plan in place to ensure creatives are not worried about the loss of work.
- Contact your Guild Reps and Associates. Especially before and after a strike is authorized. You’ll need to keep track of industry trends and market changes so that we’re already ahead of the next contract negotiations, so no one is caught off guard.
- Engage in new tech that’s not siphoning resources from underserved and marginalized communities. Propose a ban on AI that sources from those areas and create a tracking list. We should be dictating what AI use is acceptable in the business and meeting the studios halfway.
- Create a Sustainability Memo that can also partner with organizations that combat the climate crisis and environmental ruin that is caused by AI data centers.
Claude X
Anthropic accidentally released its entire source code yesterday. A debugging file was also accidentally bundled in the Claude Code a few days ago. Over 20 million people saw the code posted by a researcher, who posted download links all over the internet. Once the Anthropic employees got around to it, they tried to DMCA the code, but there was a coder who changed and rewrote the code into something new on GitHub; they cannot copyright it because it’s an entirely new source code now. Many people use this LLM for their business and work, but now we might get a new version that’s free. The coder who rewrote is also looking to do the same for Rust. This was all done with the use of AI.
Here’s the thing: the Claude code is not the competitive advantage that Anthropic has; it’s actually OPUS. OPUS is the model that gives Claude one over OpenAI. The Claw Code is doing something where, unlike Claude, it’s using non-proprietary information and an unleashed codex. It was a Clean Room rewrite, so it’s going to be hard to see it get taken down by DMCA suits.
Claw Code: https://github.com/ultraworkers/claw-code
Bad Robot Downsizing and Overall Deals in Hollywood
J.J. Abrams’ production company is downsizing and relocating its operations from Los Angeles to New York. This is actually an indication of how the industry is doing on the overall deals front. Bad Robot was among many production companies in the last huge spending year (2019) to have an overall deal with Warner Media, now Warner Bros. Discovery. Source: Waner Media and Bad Robot Productions…
The deal was packed with all that Bad Robot had to offer, with Warner Bros. fronting the money for all of it. You can read about it above. Studios were just creating deals with production companies, and in the height of the streaming era, a lot of jobs were created. Now we’re seeing a scale-back and less job creation. Overall, deals are still a thing, but we also have different deal setups that get you in the door. And the blinking yellow light versus seeing green lights everywhere.
Sources/Further Reading:
- https://theankler.com/p/first-look-deals-overalls-2025-q1-paramount-skydance
- https://theankler.com/p/development-hell-blinking-yellow-light-budget-before-creative
- https://theankler.com/p/scoop-uni-tv-beta-testing-new-deal?utm_campaign=post&utm_medium=web
Volume is different now; where the money was falling out of the sky, now it’s a drought,, and seasonally we get some sprinkles. Since the last strike in 2023, the contraction in the industry has caused some deals to be augmented or bottom out. With Bad Robot, they had a plethora of work to release and drop per year; now, we have two major productions to be released by Abrams and co., but that’s the difference between 6 years ago and now.
Hence, the sentiment Issa Rae made about the independent cinema route after seeing a decline in Black stories promoted. We have seen an uptick this year, but that’s not enough considering all the BIPOC talent out there. That talent pool depends on one another; particularly Black-led films do have a stake in how other marginalized groups perform too, as it is a litmus test. Not always equal, but factors to consider.
The Streamer Model and a Touch of Nuance…
This message is from Sterling K. Brown, actor and producer (Paradise, This is Us). There is a recent push to get ads into the streaming space; you already see it on Peacock, Hulu, Paramount, and Prime, but Netflix has launched an ad version, and Tubi recently dissed Netflix for raising prices because they’re sustaining fine with 20 ads in one sitting, which I don’t mind. Streamers make their money from subscriptions while spending heavily on content. We are going right back to how expensive cable TV was by bundling all of the apps into on-demand streaming. This also comes as a consequence of avoiding syndication and contract renegotiation for seasons 3 onward. Some shows are ending at 3 seasons, whether abruptly canceling or stopping the momentum. The 3-season hump means more rising costs and budgets, and in turn makes the series less profitable.
Another thing, the streamers are not marketing well enough because they either ran out of the budget or are allocating it to their major players. Remember back then, when it was quality over quantity, that we saw promotion for work coming out. Now we’re sort of going back to that model, but not because volume was necessary to boost streamers and TV content. But as a consequence of the front-end load. Too much upfront can ruin it for later. Now, we get a little at a time to ensure studios are generating positive returns. They’ve already allocated their marketing spend to their upcoming releases, but after that, that’s it. Unless a windfall comes their way. The key is always to sustain and profit.
Netflix has stated this for years, without giving too much else behind it. The only value a show has is to increase subscriber count. This is the result of the tech industry and the entertainment industry getting in bed with one another, and what was once a one-night stand became a common-law marriage.
Another issue is that a lot of projects are not getting greenlit for TV but for Streamers, which is a death sentence if not carefully marketed and viewed by millions, generating positive metrics that turn into $$$. For example, Paradise on Hulu should be on TV and then released the next day on streaming. But we’ve seen an issue with consumers who won’t watch because they have the luxury to stream. Or another more common dilemma, where you cut the cord and can only stream.
This is also an economic game. Cost of living increases, cost of goods sold, materials, etc. Means it’s going to cost a lot to pay talent and get production rolling, so we’ve found ourselves in a pickle. A pickle hard to return because the jar was opened.
WGA Staff Losing Healthcare Only Increases Strike Odds
Writer’s Guild Staff is striking due to leadership, and now they are losing their healthcare. Such a crazy move, because this is going to contribute to stronger healthcare initiatives for when the guild authorizes a strike after May 1st. That’s right, you heard me. How this all goes contributes to the impending strike to come. And you think they won’t? The writings on the wall. As colleagues and I have discussed for the last year. In previous reports, I spoke about how the strike was a big reason for the healthcare spending for the WGA Healthcare Plans. Now that’s all used up, we’re seeing some issues come to pass where the striking staffers were not notified until they discovered an “actual human being” to tell them what’s going on. All of this alludes to the big one coming. I feel bad for the striking members, proud of them for standing up for what’s right, but we know that this is going to lead to dire straits.
*Update*
https://www.npr.org/2026/04/05/nx-s1-5774517/hollywood-studios-wga-tentative-agreement-writers-union: 4/3: The Rumble Report | World Rumble Co.There seems to have been an update prior to this post, but the Writer’s Guild and The Studios have a tentative deal with an extra year added to protect healthcare plans, streaming residuals, and the free work situation. This is splendid news, however, this comes at a cost. As it always does. The AMPTP is drawing up their plans and coming back with a response all before the contracts are set to expire next month. Here’s my thoughts, the studios will cover the costs and not hire the people to avoid having the pay out the hired employees. The conflict also is more in-house than it is for the studios, so they may go along with this and continue doing what they have done since 2023.
Insights
Moonshot Initiative – Pilot Accelerator Opened up. Apply here: https://www.moonshotinitiative.org/pilot-accelerator
Sweet Plantains Artist Open Call x Latino Film Institute LAST DAY!
Latinos, Afro-Latinos, and Caribbean Artists are highly encouraged to apply. Send to your friends!
Paramount Writers Mentoring Program has opened up, and if you’re a writer looking for your next way in the door, I suggest you go to Carole Kirschner‘s https://www.carolekirschner.com/coaching and book a session to get some assistance. From April 1st to May 1st is when submissions are accepted for the program.
The Television Critics Association is accepting new members. Entertainment journalists, this is a way to see the diverse voices asking the right questions. Here’s your chance, from April 1st to April 17th: https://www.tvcritics.org/apply
Closing Thoughts
Don’t give up on the business yet. These downturns often mean that if you can brave this, you can brave anything. Be your own best advocate and take care of your bottom line. Like, share, and comment on this article with your thoughts on the state of the industry. There is so much to be excited for, too. Don’t miss your shot.
This has been your Rumble Report, until then, stay groundbreaking.
World Rumble 
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