Ashlee Difuntorum’s latest article for Forbes, entitled “Paramount’s Paused Merger Doesn’t Ease Creators’ Fears–But The ‘Obsession’ And ‘Backrooms’ Story Should,” unpacks how the news of Paramount’s agreement to pause its proposed $110 billion acquisition of Warner Bros. Discovery until June 1, 2027, hasn’t allayed anxiety in the industry, but highlights recent successes that could help independent creators maintain their confidence level moving forward.
Ashlee examines how the success of films like Obsession and Backrooms reframed what’s possible. “Their directors didn’t walk into Hollywood cold. Barker owned Obsession outright and sold it to Focus Features for around $15 million,” Ashlee writes. “Parsons built such a devoted YouTube following around his Backrooms shorts that A24 and Chernin Entertainment co-financed the film.”
These examples display what is needed before any studio buyers get involved: audiences the creators built themselves. Ashlee emphasizes the advantage is already available to creators. “That’s a fundamentally different position than a creator who develops inside a studio under a work-for-hire agreement.”
When a creator owns their IP, they can license or sell it to any studio entity they desire, which is the foundation Backrooms and Obsession directors built. While creators may fear reduced leverage as a result of the merger, under U.S. copyright law, they own what they create – a fact that goes unchanged by mergers and consolidation in the industry.
“The merger may reshape Hollywood’s landscape. What it won’t change is the fundamental leverage that comes from owning your work,” Ashlee concludes.
