The business of entertainment is in flux.
In movies, four of the six legacy studios — Walt Disney Co., 21st Century Fox Inc., Warner Bros. Entertainment Inc. and Paramount Pictures Corp. — were linked to a merger or acquisition within the last year.
Netflix Inc. dominates the streaming space at the moment, but Hollywood is awaiting the arrival of Disney Plus, Apple TV Plus and HBO Max.
And in music, a remade industry is starting to regain its footing through services like Spotify Technology and higher revenues from live performances.
The flurry of changes, though, has had little effect when it comes to entertainment executives who qualify for the Business Journal’s Wealthiest Angelenos list.
Entertainment titans David Geffen and Steven Spielberg, for example, are wealthy from years-old investments while some of today’s most powerful players — like Disney Chief Executive Robert Iger, Activision Blizzard Inc. head Robert Kotick and Live Nation Entertainment Inc. leader Michael Rapino — failed to make the list.
“Wealth can be tricky to pinpoint and often is based on long-ago investments,” said Adam Fowler, research director at Beacon Economics. “Some of the names on the list are people who made their fortune when the industry was more stable and walled off.”
Not every name on the list is immune to industry changes, however.
Sumner Redstone consistently occupied the No. 1 or No. 2 spot on the Wealthiest list during the 2000s, but his ranking dropped as Wall Street investors determined Viacom Inc. to be a step behind where entertainment is headed.
Redstone still holds a controlling stake in Viacom and CBS, and his spot on the list next year will depend on the stock price of a consolidated ViacomCBS Inc., pending regulatory approval.
Jeffrey Katzenberg’s future on the list, meanwhile, may rest on the success of his video streaming startup, Quibi.
“If there is a further boom and democratizing in content creation, the list could start to look different 10 years from now,” Fowler said.
By some indications, Los Angeles County’s entertainment business is shrinking. State employment data for July 2019 showed that 124,000 employed residents, or 2.7%, worked in motion pictures and sound recordings. In July 1999, that number was 147,000 and 3.6%. Those figures, however, do not count the independent contractor workforce.
Georgia has eclipsed California as the state with the most movies with budgets over $100 million, according to a FilmLA report.
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