CAA’s Bryan Lourd sees ‘chaotic’ near term for the entertainment industry

Streaming platforms were direct beneficiaries when viewers were suddenly shut indoors by the Covid-19 pandemic. But the entertainment industry has yet to adjust its operating models to properly compensate artists after the shift, says Bryan Lourd, co-chairman and CEO of talent agency CAA.

Even before the pandemic, industry consolidation had dramatically altered the competitive landscape. Now, companies that are two to five times bigger are still relying on management theories that existed 25 years ago, and streaming’s new influence has exacerbated the problem, Lourd says.

“I think the companies that existed before were poorly managed, to be frank,” Lourd says in a Goldman Sachs Talks with moderator Susie Scher, chair of the Global Financing Group within Global Banking & Markets at Goldman Sachs. Far from being the “complete solve” that studio executives were counting on, “what streaming did was misalign the people that make the things that you sell – artists – from the revenue center,” he says. “And until that realignment occurs, which it will, it's going to be chaotic.”

Fair pay in the streaming era is one of the core issues that prompted Hollywood writers to hit the picket lines earlier this year. How artificial intelligence is applied in the making of content is another source of conflict. “These are the challenges of the decade,” Lourd says.

Lourd believes there is enough demand to support the growth of streaming services in recent years, but he sees a disconnect between what they charge and the inconsistent quality they’re delivering. In his estimation, the companies have underinvested in the creative people who decide what gets greenlighted. “It always gets back to who’s picking what we see,” he says.

Working with creatives over the past 25 years has kept Lourd passionate about his job. He started as a page at CBS before moving on to the mailroom at William Morris, where he says he got exposed to every dealmaker at the renowned talent agency. He’s led CAA since 1995, a time which saw the agency grow its employee base from 275 to 3,400. Lourd personally represents George Clooney, Brad Pitt, Charlize Theron, Octavia Spencer, Scarlett Johansson, and Daniel Craig, among other A-list celebrities.

“I love the conversations I get to have with people that are creators and to help navigate how to get their idea to a reality and to help them monetize that idea,” Lourd says. “That’s my job – caring about individuals and wanting to help them realize their dreams.”

Lourd’s own dream of working in the industry started back in his hometown of New Iberia, Louisiana, also the birthplace of Tabasco sauce. The town had one movie theater that showed only two movies a year, and one was “Gone with the Wind.” Lourd says his family made up for the lack of entertainment by being great storytellers.

His story has also been one of metamorphosis. He was in a high-profile relationship with the actress Carrie Fisher and had a daughter with her before being outed as gay by a gossip columnist. He says he never used his sexual orientation as a “get out of jail free card,” focusing instead on his career and “the long game.” He acknowledges having a close cadre of supportive relatives and famous friends who helped him through the difficulties.

“It’s the other people that don’t have the access, or don’t get lucky, or that have parents that don’t know what to do with them, or towns that have laws against their lives,” Lourd says. “That’s what our collective fight has to be about.”

Lourd was part of a team at CAA that started a series of events called CAA Amplify, which works to trigger change for communities of color in media, sports, and entertainment. He also helped create the CAA Foundation and serves on the boards of the Roybal School of Film and TV Production, Clooney Foundation for Justice, Lincoln Center, and CORE, Sean Penn’s crisis response nonprofit.

One piece of advice he says he gives to every young person he meets is to always make a good first impression “because you always meet people twice.” He recounts the story of a former secretary at William Morris he delivered the mail to, who later referred him to a young actor who had a small part in the movie “Thelma and Louise.” She thought he might want to sign him at his new firm. His name was Brad Pitt.

 

This episode was recorded on June 14, 2023.