Sony Pictures Entertainment’s CEO, Tony Vinciquerra, raised the alarm on Monday, suggesting that the agreements reached to suspend the Hollywood strikes are now pushing production overseas.
While on the platform at the Mipcom TV market, held in Cannes, where he was honored with the prestigious Variety Vanguard Award, Vinciquerra stated that the economic disparity between the US and other countries, including the UK, Australia, and Eastern Europe, would result in a continued shift of Hollywood productions to foreign shores. Lower crew costs and more attractive tax breaks in these regions contribute to this trend.
According to Vinciquerra, the contract terms in the US are pushing production out of the country. He affirmed the industry tried discussing the implications with unions, and it seems their predictions are materializing.
While addressing the current state of affairs in the business, he added that the loss of around 15,000 non-union jobs in the US over the previous three years is a testament to the industry’s downturn.
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Vinciquerra switched tracks to discuss the boom of cable networks globally. He foresees a significant shakeup occurring within the next 18 to 24 months, characterized by potential mergers, consolidation, sales, or even bankruptcies.
Vinciquerra believes that cable networks are in an inevitable decline. However, his optimistic outlook highlights that the demand for entertainment will remain strong, continue to grow, and adapt to change. Once the industry wades through this transitional phase, he anticipates a more advantageous position.
Incidentally, Vinciquerra will cede his role as Sony’s CEO on January 2. Hinting at his future, he indicated the possibility of returning to the private equity sector.
When discussing his decision to step down, he clarified that his initial intention was to serve Sony for a shorter period. Unforeseen events such as the global pandemic and the strikes extended that tenure. His objective was to get the company back on track and stabilize it — a goal he believes has been accomplished. Now, he plans to return to his previous position as a private equity advisor.
Vinciquerra emphasized that he isn’t retiring but charting a new course. Having left Fox before, this transition is familiar territory. He reiterated a famous quote: “Nobody leaves these jobs intentionally,” surmising he’s done it twice already.
Looking to the future and evaluating his options, he affirmed his passion for problem-solving and building. Referring to his managerial approach, he advises leading with common sense and logic, rather than being driven by ego.
Vinciquerra stated that he wants to continue helping people progress in their careers. One of his proudest achievements is witnessing those he has worked with excel and advance professionally.
He concluded that his journey with Sony was an enjoyable ride, but it’s now time to explore new avenues.
FAQs
Why is Tony Vinciquerra stepping down as Sony’s CEO?
Vinciquerra has decided to step down after an extended period of service. He originally intended to serve the company for a shorter period. However, unforeseeable events such as the COVID-19 pandemic and Hollywood strikes extended his tenure. Having accomplished his goal of stabilizing the company, Vinciquerra plans to return to his previous role as a private equity advisor.
What future trends does Vinciquerra predict in the media industry?
Vinciquerra anticipates a significant phase of transition for the media industry, particularly in the world of cable networks. With increased global competition, he foresees potential mergers, consolidation, sales, and even possible bankruptcies within the next 18 to 24 months.
How does Vinciquerra want to contribute to the industry post-retirement?
Though Vinciquerra won’t be serving as a CEO, he plans to continue assisting people in their professional growth and development. His satisfaction lies in seeing those he has collaborated with excel in their careers. He finds problem-solving and building to be fulfilling, which will guide his role in his new direction.
Credit: variety.com
