From mega-mergers to disruptive new technologies, the media industry has a lot to pack into the next 12 months. Artificial intelligence continues to reshape the way movies, shows and music are made, upsetting companies who fear it will lead to further job cuts. Bob Iger is finally ready to leave Disney (this time with a pinky promise), setting up a long-running succession battle. And Netflix and Paramount are embroiled in an epic battle over Warner Bros., with the clash of giants and egos showing no signs of abating. All of this is happening as the box office is in a rut, cable TV is in freefall, and the entire economy is unstable. Yes, it’s a fun time!
While we can’t say for sure what’s going to happen in 2026, we’re going to take a chance and channel Nostradamus to give us some predictions about the upcoming drama.
“Odyssey” will be the biggest hit of the year
The name on everyone’s lips will be Odysseus. Some of the biggest franchises in Hollywood history are returning to screens with sequels and spinoffs from Star Wars, The Avengers, Toy Story and Super Mario Bros. And “Dune”. But this movie, which will reign above them all, is based on intellectual property that has been in the public domain for thousands of years. Christopher Nolan’s film adaptation of Homer’s The Odyssey will dominate popcorn season. Who else but Nolan could put Imax tickets on sale a year in advance and get fans to buy them in record time? And if you can turn the making of an atomic bomb into a blockbuster, it should be easy to draw people in to an epic survival story dating back to the 6th century BC.
Netflix will win a deal with Warner Bros.
This year is about to end on a major M&A cliffhanger: Will Netflix or David Ellison’s Paramount Skydance acquire Warner Bros. Discovery? Netflix, which swayed the WBD board with its solid financials, its position as the No. 1 subscription streamer, and co-CEO Ted Sarandos’ promise to keep showing movies, certainly seems set to lose. But the partnership is fraught with regulatory uncertainty, and Trump remains a wild card. Meanwhile, Ellison and his ultra-wealthy father Larry Ellison can’t part without a fight. However, to prevail in a hostile takeover bid, the Ellisons would need to vote in favor of an all-in offer for 90% of WBD’s stock. It’s difficult for that to happen unless Paramount and its backers are willing to offer more than the $30 per share offer on the table.
The next leader of the Magic Kingdom will be…
Bob Iger will (finally!) walk off stage at the end of 2026 with a gold Mickey Mouse watch. Who will take the call? Wall Street expects the finalists to be Disney Entertainment co-chairman Dana Walden and Josh D’Amaro, the conglomerate’s head of parks and experiences. Walden has real entertainment. Damaro is a respected leader in the company. It’s possible the board could opt for a co-CEO arrangement, but that doesn’t seem to be Disney’s approach. The board can also throw curveballs and hire someone from the outside. But given the last result, the managers should certainly be doing their utmost due diligence. Give Damaro the edge.
Can Hollywood compete with AI?
In the artificial intelligence wilderness, entertainment companies are trying to wield both the carrot and the stick. For example, Disney, Universal, and Warner Bros. sued two AI startups for stealing their intellectual property. And Disney is trying to take control of its own AI destiny by going into business with OpenAI. At the end of the day, Disney is betting that the technical and legal guardrails will eventually be in place to allow it to participate in the gold rush and avoid being swept away by the recession. We expect other companies in the industry to explore similar strategies.
Meanwhile, the music industry faces its own battle with AI. For several months, the industry seemed to be on the same page in viewing generative AI as an imminent threat to human creativity and compensation. In July 2024, Sony, Universal, and Warner partnered with the Recording Academy in two copyright infringement lawsuits against AI music services Suno and Udio. But as AI music moves from the margins to the forefront, Zania Monet, for example, became the first AI artist to appear on Billboard’s radio chart in November. Instead, the major companies signed contracts. By the end of 2025, Warner has partnered with Suno. The Big Three forged a license with AI music startup Klay and partnered with Spotify to tackle AI usage issues. Concerns from the artist and songwriter community were valid, and nearly all deals were announced in amorphous form. A proof of concept will likely occur in 2026, when products resulting from these partnerships will be launched.
Big questions about small screens
In 2026, all eyes will be on what the two powerful former Netflix executives do in their new homes. Paramount Skydance head of streaming Cindy Holland’s ultimate vision for Paramount+ should be revealed. And Peter Friedlander, the new head of global TV at Amazon MGM Studios, will give the company its stamp of approval. Meanwhile, as Versant launches as an independent company, it will be interesting to see how its network makes an impact with live TV and programming acquisitions. On the broadcast side, the future of CBS News under Bari Weiss will be the biggest concern. We’ll soon find out what happens on CBS after “The Late Show with Stephen Colbert” ends its run at midnight (our prediction: The Eye network expands its 11 p.m. local news to an hour). A hot topic in development is the microdrama business and how to adapt it to television. And as more series find it cheaper to ship their performers overseas, the unscripted world focuses on runaway productions. In addition, there are signs of a Hollywood strike due to the expiration of the guild contract.
