Jon Feltheimer, CEO of Lionsgate, believes in Netflix, but its “pivot” is inevitable; For starters, he might reconsider his “Knives Out” proposal himself.

Lionsgate CEO John Feltheimer believes Netflix still has “big business” but “hasn’t moved fast enough” as subscriber momentum has stalled.

Observations on Netflix’s efforts to repair the ship after losing $ 200 billion in market value provided some mouthwatering snippets of industry analysis and career reflections it offered during a one-hour speech at Denver’s SeriesFest. The conversation between Lionsgate CEO and Liberty Global CEO Mike Fries at the eighth edition of the festival, which runs until Tuesday, has returned to personal mode with an initial emphasis.

Fellheimer and Fries have known each other well for decades and Fries is on Lionsgate’s board of directors and this meeting resulted in a number of exciting moments. (Fries easily won over Jeffrey Katzenberg and Ted Sarandos for opening the SeriesFest in recent years.) walk in chaos And move on to Damien Chazelle Babylon After scoring a great goal the earth.

Evaluating the challenges for Fries’ Netflix, Fellheimer noted that the company made the decision nearly a decade ago, which caused significant financial pressure. After the first original hits (including those produced by Lionsgate ფერი Orange is cool black) And I expect a lot from myself, “they decided they would cut and burn and reach more subscribers than anyone else and no one can catch them,” the executive said. “They just spent and spent, and if someone else tried to spend that much, they would fail. That was his strategy. But they got to the point where they started to slow down and we had a pandemic. And I think maybe they didn’t turn very fast. But they are about to organize a coup. They still have a great deal. “

When Netflix announced its quarterly earnings last month, its management said it was looking closely at its spending structure. Spending $ 20 billion a year on programming, as the company suggests in 2022, will not be sustainable.

Fries suggested not to think that “the bubble has burst, but the air is leaking a little” after a gradual increase in substantial investment. “I think they will have to move up,” Feltheimer said. “They were constantly looking at people, maybe some of us, and they paid double, sometimes triple what we paid them. It won’t work forever, will it?

The company will also have to change “the infrastructure, probably the way it runs its business,” Feltheimer said, adding that budgets and bonuses that have become “ridiculous” are likely to be cut. Determining the print size of your originals will be crucial, as will the differences between the windows.

knives out It is an example of how a company can be forced to reconsider its path. Fellheimer said that until the last ounce of the company, a franchise agreement for the Knives Out rights was closing. (Netflix received two extensions to the original 2019 Lionsgate, paying at least double the Lionsgate limit, the CEO.)

Fellheimer said he offered to borrow the original “Borrow” in exchange for some extension rights from Netflix. The planned trilogy could be packaged for streaming and other profitable ancillary markets. “We will make a lot of money; “We will distribute, we will take the distribution quota, we will send it back,” Feltheimer recalled, who told the company. “It’s an interesting and organic idea for them. They thought about it and said: “No”. With a smile he concluded: “It was then and it is now. So I go back to them. Same thought, Ted.

While these weren’t specific markets where such a deal would have an impact, the theatricality is surprising. The first film grossed $ 311 million worldwide. In the current Netflix model, sequels won’t have more than a few weeks of playback in any major theaters.

While Netflix is ​​the topic of the magazine, the conversation also touched on the many successes of Feltheimer, who recalled learning about the business world from his father, who grew up in Brooklyn. He said that he made his behavior of himself according to his he father. “I try to treat everyone with the respect they deserve,” he said.

After a first hiatus at New World in the 1980s, shooting hit series like The Wonder Years, Fellheimer followed Sony before taking over Lionsgate. Most of the session focused on the unique aspects of the corporate culture that Feltheimer was trying to develop. Loyalty is a core value as many of his colleagues have worked with him for 35 years.

Although the race had elements of its history, Fellheimer admitted he didn’t want to. walk in chaosWith Tom Holland and Daisy Ridley. He said sarcastically that he was “intimidated” by the suppliers of the project, which went bankrupt last year. “I want to follow my boyfriend and go to the other side.”

Babylon He has not yet been released, but Fellheimer said he is already suffering from the move for financial reasons. “We have a wonderful relationship and we killed it the earth“He said. So Fries laughed at him for selling the Oscar role. ‘You’re hiding!'” He said as the audience laughed. “These people are financially very creative. I love it.”