Netflix and Amazon are driving what I call “Concentration Creep” across the industry. Concentration creep means that consolidation in one part of an industry causes consolidation in other parts. Disney, for instance, is trying to mimic the company by launching what may be a below-cost streaming service. It also bought Fox’s media assets, so it can bulk up and gain market power. And Trump’s Antitrust chief, Makan Delrahim, is considering getting rid of the Paramount Consent Decrees, which might prompt Amazon or Netflix to simply buy a movie theater chain. It’s becoming increasingly clear that the only goal now in Hollywood is to become gain market power in distribution or must-have content production, and then use that monopoly power to reduce the quality of output and reduce the bargaining leverage of artists. Even the agents, who are supposed to represent artists, are getting into the vertical integration game. The net effect is higher prices, less paid to artists, a less creative industry, and ultimately, the death of the Hollywood ecosystem of storytelling. Such a dynamic isn’t just a problem in terms of a more arid artistic world, but is in fact a political and national security problem. We learn a lot from our movies and TV shows, including about politics and geo-politics. The U.S. military tends to subsidize movies that make them look good; with fewer producers of movies, such subsidies will have more impact, and perhaps make it less likely artists criticize the state or powerful corporations. But the free expression problem imports overt government censorship into America and the entire West.
The Slow Death of Hollywood