The streaming executive wanted to reduce the number of films the company produced. Does his departure signal a shift in strategy?
If Hollywood executive roles belonged in the Oscars category, Scott Stuber would have taken home the award for his scene-stealing ad.
The company's longtime (at least by entertainment industry standards) head of films revealed on the eve of the Oscar nominations that he is leaving the streamer to start a new media company. The news wasn't a complete shock. His exit has been rumored for some time and the beloved executive has been talking to potential financiers about a solo project, according to a source familiar with the matter.
However, his farewell leaves one of the most influential careers in movies open for the taking. This will likely spark a wave of people polishing their resumes, including the head of Warner Bros. ex Toby Emmerich, former head of Paramount's motion picture group Emma Watts, and executive-turned-producer Dan Lin. It's possible, but less likely, that former Paramount CEO Jim Gianopulos and recently departed Sister Global leader Stacey Snyder could be in the mix. But these types of jobs don't come along often, and although Netflix is known for having a strict corporate culture, its top executives are handsomely rewarded with big salaries and stock options. Additionally, it represents an opportunity to shape the future of the business, which, despite the economic challenges, still lies in live streaming.
It's unclear how Stauber's farewell will affect Netflix's movie strategy, which has recently shifted away from being a huge business. It faces challenges from Amazon, which has shown new aggressiveness under its cinema chief Courtenay Valenti and key ally Sue Kroll, who runs marketing. Apple has also embraced the theatrical space more intensely, which has helped it attract top talent like Martin Scorsese (“Killers of the Flower Moon”) and Ridley Scott (“Napoleon”).
Stober arrived at Netflix in 2017, after beating out several executives for the position. It has come with lucrative benefits (billion-dollar content spend!) and challenges. Cinemas were skeptical of establishing relationships, and many major filmmakers preferred to open their films in theaters for long, exclusive periods, which conflicted with Netflix's core business model.
In many ways, Stauber, who was in his late 40s at the time, was the ideal employee, serving as a bridge between two generations of movie moguls. Studio leadership had become increasingly reserved for seniors, and Steuber had a foothold in every world – a proven film producer who could work at multiple budget levels and someone who resembled what a casting director dreams of for the role of “Hollywood CEO.”
When Stauber took the reins, he dramatically increased the company's original film production and forged important relationships with the likes of Academy Award winners Alfonso Cuarón, Spike Lee and Scorsese. Its early years at Netflix were marked (some might say marred) by a bold promise to release a new movie every week. This strategy came with high costs and mixed returns (anyone remember the “School of Good and Evil”?)
“We were building a new studio. We had only been doing this for a few years, and we were facing 100-year-old companies,” Stuber said of the early days of Netflix. “So you have to ask yourself: What is your business model?” And for a while, it was “It's just making sure we have enough. We needed the volume.”
However, Stober has recently expressed interest in focusing on quality rather than quantity. Although the company has yet to win the elusive Best Picture award, in 2020, 2021 and 2022 Netflix received the most Oscar nominations of any studio.
“We're not trying to get to a set number of movie releases,” he said. diverse In 2023. “It's about, 'Let's make what we believe in.' And let's actually make a slate that we can get behind.” He also urged the company to be more transparent with its viewing data and give more films exclusive theatrical release, moves that Netflix co-CEO Ted Sarandos initially resisted it.
Several insiders familiar with Stauber's exit said there was no major falling out and that he will continue to work with Sarandos and Bela Bajaria on future projects. Stauber was also subjected to budget cuts on the film side, which he rejected, according to a source familiar with the company. Netflix insiders dispute this, saying the company's $17 billion annual content budget provides ample resources for the film division's ambitions.
As with any departing studio head, Stober leaves behind films at all stages of production. (Netflix said he will stay through the spring to help with the transition.) CEOs Kira Goldberg and Ori Marmur will remain focused on tentpoles, while Niija Kuykendall will develop mid-cap features.
Netflix hasn't revealed its full slate for 2024, but it has announced it will release Eddie Murphy's “Beverly Hills Cop: Axel Foley,” Cameron Diaz's comeback “Back in Action” with Jamie Foxx and Halle Berry, and the Samuel L. Jackson thriller “The Union.” and Denzel Washington based on “The Piano Lesson.”
Meanwhile, Gina Prince-Bythewood's “The Old Guard 2,” starring Charlize Theron (which is in post-production), and Greta Gerwig's new take on “The Chronicles of Narnia” (which doesn't have a script yet) are expected to release They are greatly affected by change and are in different stages of development.
As for Stauber's new company, he has already raised capital and will focus on producing larger, more popular productions similar to films he has produced such as “Ted” and “Identity Thief.” He plans to work with Netflix, but now he's just asking for the green light from his successor rather than making the decisions on what gets done.
Whoever takes over for Stuber will have to decide what role Netflix plans to play in the fast-moving movie industry. Will she attempt to achieve the kind of quality that Stober aspired to, but never succeeded in? Or will it leave the prestige of images to Apple, and to a lesser extent Amazon, and focus instead on making lots of movies to get the greatest common denominator? One important new reality that any filmmaker must contend with is that streamers are no longer measured solely on the number of subscribers they add. They're expected to be profitable, and fortunately for Netflix, they're the only game in town that can do both at the moment. But this means tightening your belts instead of spending freely. Cost-cutting is the new norm today, and as anyone in Hollywood can tell you, it's a lot less fun.
