Why Would Warner Bros. Fire Its Marketing Chief Ahead of Its Riskiest Movie Slate in Years?

by

January 7th saw Josh Goldstine, Warner Bros.’ global marketing chief, receiving a termination notice from his superiors, Mike De Luca and Pam Abdy, towards the end of the workday. This came as a shock to many on the Burbank lot since Goldstine’s three-year contract had been extended in early 2024. His significant contributions to the successes of films like “The Batman”, “Beetlejuice Beetlejuice”, “Barbie”, and “Wonka” were well recognized. The news of his dismissal was made public the day after, amidst the raging Los Angeles wildfires. Some found this timing inappropriate, but others attributed it to an unlucky coincidence.

There’s an adage in Hollywood: When a movie flops, blame marketing.

This unusual executive change is noteworthy because Warner Bros. had experienced a relatively successful 2024 at the box office. Andrew Cripps, the international distribution head, was among those let go as part of a restructuring aimed at enhancing global theatrical operations. In the new setup, Jeff Goldstein, who has been with Warner Bros. in a domestic distribution role, has been promoted to handle all aspects of the company’s worldwide exhibition activities.

Regarding our plans for the future, we’ve chosen to restructure our business unit around a single, centralized global operation. This move aims to provide better cohesion among all our staff members,” stated De Luca and Abdy in their announcement of the changes.

The dismissals of Goldstine and Cripps occur prior to Warner Bros.’ most daring lineup in years, which concentrates more on costly, director-focused originals rather than established blockbusters. This upcoming roster features new projects from directors like Paul Thomas Anderson (a creative powerhouse, albeit not always a commercial success) and Maggie Gyllenhaal (whose previous film “The Lost Daughter” was nominated for three Oscars but premiered on Netflix, not in cinemas). Additionally, there are several sequels planned, with the continuations of “Mortal Kombat,” “Final Destination,” and “The Conjuring” set to be released.

Over the last year, Warner Bros. has experienced a mix of financial losses with films such as “Mad Max: Fury Road: The Saga” and “Joker 2,” but they weren’t alone in this challenge. However, they also produced several blockbuster hits that expanded the reach of “Dune 2” beyond its science-fiction fanbase to a broader audience, boosting the MonsterVerse franchise despite mixed reviews for “Godzilla vs. Kong.” The success of “Beetlejuice Beetlejuice” was impressive after a 36-year hiatus, but it faced difficulties at international box offices. In contrast, films like “Twisters” were domestic powerhouses that didn’t resonate as strongly in foreign markets. Despite this, Warner Bros. has weathered more turbulent box office situations, such as in 2021 when all their releases were made available simultaneously in theaters and streaming platforms under the leadership of former WarnerMedia CEO Jason Kilar.

In the past year, Warner Bros. suffered some costly flops like “Mad Max: Fury Road: The Saga” and “Joker 2,” but they weren’t alone in this predicament. However, they also produced hit movies that broadened the audience for “Dune 2” beyond its sci-fi fanbase and boosted the MonsterVerse franchise despite mixed reviews for “Godzilla vs. Kong.” The success of “Beetlejuice Beetlejuice” was remarkable after a 36-year break, but it struggled at international box offices. In contrast, films like “Twisters” were strong in domestic markets but not as successful abroad. Despite these challenges, Warner Bros. has faced more tumultuous situations at the box office, such as in 2021 when they released all their movies simultaneously in theaters and on streaming platforms under the guidance of former CEO Jason Kilar.

Some experts and insiders are hinting that Goldstine’s dismissal might be connected to cost-reduction initiatives, as it remains uncertain if the global marketing role will be filled again. However, contrary to widespread industry assumptions that Goldstine was made a fall guy for the fiasco of “Joker 2”, sources affirm that there wasn’t any specific incident triggering the marketing mastermind’s exit.

Jason Squire, professor emeritus from USC School of Cinematic Arts, comments that Warner Bros. had an impressive year in filmmaking, with few exceptions like ‘Furiosa’ and ‘[Joker 2]’, which didn’t resonate strongly with audiences. This isn’t a reflection on marketing but rather a production issue.

In early 2025, the studio plans to reveal a blend of various genres and creator-centric originals, such as “Companion,” a low-budget sci-fi thriller featuring Sophie Thatcher and Jack Quaid (January 31), “Mickey 17” directed by “Parasite’s” Bong Joon Ho, with Robert Pattinson in the lead role (March 7), Barry Levinson’s $45 million gangster drama “Alto Knights,” where Robert De Niro portrays a mob boss alongside himself (March 21), “A Minecraft Movie” starring Jack Black, an adaptation of the popular video game into live-action (April 1), and “Sinners,” a $90 million vampire horror story helmed by Ryan Coogler, director of “Black Panther” and “Creed,” with Michael B. Jordan in the cast (April 18). Apart from “Minecraft,” these films lack established brand recognition and will need innovative marketing strategies and captivating advertisements to entice audiences to purchase tickets.

As a movie enthusiast, I find myself pondering the timing of their current executive shakeup, given the uncertain future of their next five films. With ‘Superman’ being the exception, the rest of their upcoming lineup seems to be shrouded in doubt and uncertainty.

As a die-hard cinephile, I’m eagerly anticipating the cinematic debut of James Gunn’s “Superman” reboot on July 11, starring David Corenswet as the Man of Steel and Rachel Brosnahan as Lois Lane. Other upcoming sequels include “Final Destination 6” (May 16), “The Conjuring: Last Rites” (Sept. 5), and “Mortal Kombat 2” (Oct. 24). These are the films that seem most likely to grace our screens. However, there are a few wildcards in the mix too. For instance, there’s Anderson’s unnamed film with Leonardo DiCaprio, which carries an estimated production cost of at least $130 million and needs a staggering $300 million in box office revenue just to break even (Aug. 8). Gyllenhaal’s $80 million Frankenstein spinoff “The Bride!” (Sept. 26) is another high-risk project, as is Joseph Kosinski and Brad Pitt’s $300 million racing drama “F1,” funded by Apple but distributed by Warners. With marketing campaigns starting once a film gets the go-ahead, promotional efforts for most of these titles have been ongoing. Yet, the majority of advertising tends to be rolled out within two months of the film’s theatrical release.

Squire remarks that the plan appears quite challenging on the surface,” he notes. “One has concerns regarding the budget for certain films, as the expenses escalate due to the need for substantial promotions to compensate for the film’s production costs.

In 2021, Toby Emmerich, who was then the chairman of Warner Bros. Motion Picture Group but later got ousted in 2022 when David Zaslav took over Warner Bros. Discovery, hired Goldstine. Known for his marketing prowess and strong connections with filmmakers and talents, Goldstine has a long history at Sony and Universal Pictures. However, his tenure isn’t free of disputes. In 2001 at Sony, he was suspended without pay for a month due to accusations of fabricating film critic quotes to boost the promotion of four of their films. His termination from Universal in March 2018 was also controversial, but an arbitration judge ruled in his favor in 2020 and reportedly granted him $20 million in damages for wrongful termination.

Over a span of three decades, this individual has been instrumental in initiating marketing campaigns for high-profile movies such as “Spider-Man,” led by Tobey Maguire on Sony, which set the record for the first $100 million opening weekend ever; Universal’s “Jurassic World,” “Despicable Me,” “50 Shades of Grey,” and the “Fast and Furious” series; as well as more artistically-inclined projects like David Fincher’s “The Social Network,” Tom Cruise’s “Jerry Maguire,” and Jordan Peele’s debut directorial effort, “Get Out.” Interestingly, both “The Social Network” and the “50 Shades” trilogy were produced by his future boss, De Luca. Lately, he engineered the pink promotional strategy for Greta Gerwig’s 2023 blockbuster hit, “Barbie,” which currently holds the title of Warner Bros.’ highest-grossing film in history.

According to Stephen Galloway, Dean of Chapman University’s film school, marketing professionals are often the ones who receive criticism first and praise last. People might argue that a product like Barbie sells itself, but in reality, it’s not the product doing the work – it’s the incredible job done by the marketing team.

Over the tumultuous last decade, Warner Bros. has navigated changes such as two different parent companies (initially AT&T and later the merger with Discovery), as well as significant leadership shifts at the helm. De Luca and Abdy, who assumed their roles over two years ago following Emmerich’s departure, were brought in due to their strong connections within the creative community. Prior to joining Warner Bros., they oversaw MGM and secured high-profile projects like Anderson’s “Licorice Pizza,” which marked the studio’s first Oscar best picture nomination since 1988, as well as Ridley Scott’s “House of Gucci” and Channing Tatum’s unexpected box office success “Dog.” Upon arriving at Warner Bros., they promptly initiated plans and implemented a strategy to take bold steps in negotiations with directors and stars such as Cruise, Timothee Chalamet, Baz Luhrmann, and “The Batman” director Matt Reeves.

On one hand, their willingness to embrace creative risks is seen as commendable given the current industry trend of reboots and sequels. The abundance of intellectual property necessitates fresh ideas for the entertainment sector to thrive. However, there are concerns about the financial risks Warner Bros. is taking on.

Experienced professionals often find that when they take on a new leadership role in a studio, they may choose to replace existing executives with their own picks for key positions. As of now, Abdy and De Luca haven’t made clear whether they will appoint a fresh head for the global marketing department. For the time being, they have temporarily assigned three members from Goldstine’s team – Dana Nussbaum, Christian Davin, and John Stanford – to manage the global marketing team, creative advertising for theaters, respectively.

Based on inside information about the reasoning behind De Luca and Abdy’s decision, the studio leaders perceived Goldstine as holding an “old-fashioned” mindset. With the changes they made, they aimed to keep the executives who were instrumental in successful projects like “Barbie” and “Wonka”, while creating a setup that gives De Luca and Abdy more control. Despite his intense dedication to his work and job, Goldstine is known for being headstrong and blunt in his interactions. Some suspect he may have clashed with De Luca and Abdy, but insiders dismiss this as unimportant, pointing out that it’s common for top aides like Goldstine to be tenacious and opinionated.

“You can never rule out people’s chemical affinity for each other in these jobs,” says Galloway.

The situation significantly increases the extremely high risks associated with “Superman,” as it marks the reboot of the DC Universe under Gunn and Safran’s leadership. This movie represents a significant opportunity for the studio to produce a blockbuster that could potentially earn over a billion dollars in 2025, but even Superman isn’t exempt from box office weaknesses. The upcoming superhero journey is being released at a time when the genre, previously considered unbreakable, is experiencing a downturn.

Everyone at the studio has a countdown clock set for July 11th, which marks the day Superman, portrayed by Clark Kent, makes his grand comeback to the silver screen. If Superman fails to intervene like he did during the Normandy landings, many people could find themselves in dire straits.

Read More

2025-01-17 19:17