Wall Street wants to lend to Hollywood, and that could be bad news for the rest of us
Almost Friday! Dan DeFrancesco in NYC, and my head starts to hurt every time I read this story about an "ultramassive" black hole. The only black hole I enjoy is the one Chris Cornell (RIP) sings about.
But first, we've just got a couple notes to run by you about the script.
1. Hollywood's newest lender has some thoughts.
If you're hoping for a creative renaissance in Hollywood, one that doesn't include comic books or remakes, I've got bad news for you. The newest underwriters for Hollywood are here, and they're not the type to take chances.
Insider's Rebecca Ungarino and Reed Alexander have a story on private lenders looking to make investments in media and entertainment.
If you're unfamiliar with what private credit is, it's basically an alternative lender (i.e. not a bank). Here's a good refresher on private credit, along with a list of the biggest players in the space.
Hollywood has long represented an interesting investment opportunity for Wall Street, but lending to the industry is an interesting twist. And it could even end up impacting the type of movies and TV shows we see in the future.
See, it's one thing to own an actual stake in a media or entertainment industry. Those types of deals, generally, have a long-term view on the market. A loan is a different story. The expectation is that money will be paid back in a somewhat timely fashion.
With that in mind, it'll be interesting to see if these loans come with a caveat for the type of movies and TV shows for which they can be used. As Rebecca and Reed point out in their story, some lenders are already skeptical of backing individual scripted projects. Basically, don't bother taking a moonshot if it's on Wall Street's dime.
To be sure, Hollywood has always considered its bottom line (they don't make new "Fast & Furious" movies for the plot). But having such risk-averse lenders holding the purse strings for new projects seems like a creative killer.
You can already see where we are headed with this. As Reed pointed out in a follow-up story, Wall Street is keen to apply artificial-intelligence tools to identify projects worth greenlighting.
Ah, yes, nothing gets the creative juices flowing like an algorithm telling you how you should write your script.
Look, I'm not a hipster snob who turns their nose up at box-office hits. I enjoyed "Top Gun: Maverick" as much as the next person.
But I don't want to live in a world where the requisite for a movie to get made is the main character being in Spandex.
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Curated by Dan DeFrancesco in New York. Feedback or tips? Email email@example.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Jack Sommers (tweet @jack_sommers) in London.
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