Kevin Mayer, a seasoned entertainment executive and CEO of Candle Media, has raised concerns about the declining relevance and profitability of Hollywood, emphasizing that this issue has not received the attention it deserves.
During a recent Paley Dialogue event in Los Angeles, Mayer stated, “Hollywood is becoming less relevant, with less time being spent on it, and the time that is spent is also less profitable.” He further explained that streaming services are “fundamentally less profitable” than traditional pay TV. “The industry is facing a significant, secular challenge… there’s been some alarm, but not enough — this is truly alarming,” he added.
Mayer, who leads Candle Media in partnership with Tom Staggs, pointed out that this challenge is evident in the stagnating stock prices of traditional media companies, which he noted have remained unchanged for years.
The diminishing appeal of Hollywood can be attributed to the rise of social media, with Mayer observing that “more influencers are now the celebrities of youth, surpassing movie and TV stars in popularity.”
He remarked that across generations, from baby boomers to Gen Z, traditional media viewership is “monotonic,” indicating a consistent decrease in percentage watched. Meanwhile, time spent on social media and video gaming continues to rise. “The center of gravity for youth has already shifted away from Hollywood,” Mayer asserted.
Mayer cautioned that as older generations fade away and younger audiences emerge as unique consumers, the inevitable decline of Hollywood will continue. He stressed that while Hollywood won’t completely disappear, it will increasingly struggle with irrelevancy. “This trend is set in stone; it’s going to happen,” he warned.
Given the contraction in the TV and film industry, Mayer believes it is “inevitable” that more defensive mergers and acquisitions will occur as companies look to reduce unnecessary costs to enhance their survival prospects.
“A highly effective strategy to cut costs is through the merger of two companies,” Mayer explained, adding that the harsh reality of such strategies often results in job losses. “This is necessary to maintain profitability and continue producing content. In a shrinking industry, companies will need to combine,” he remarked.
While Mayer identifies YouTube as the “most relevant content provider,” he highlighted a key distinction between traditional media and social media in terms of storytelling. He pointed to content on platforms like YouTube and TikTok, which often features “quick 30-second jokes, 9-second dance videos, cooking tips, or travel advice.”
“These formats do not constitute storytelling; they provide useful information and entertainment, but are not centered on narrative,” Mayer elaborated. “Storytelling is not the main focus on YouTube — while there is some storytelling, most content consists of snippets that occupy significant mindshare.”
Mayer also noted the success of “CoComelon,” produced by Candle Media’s Moonbug, on YouTube, which was once the biggest channel globally before being overtaken by Mr. Beast, boasting 180 million subscribers at the time of its acquisition by Moonbug.
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