For 20 years, Participant Media has supported socially conscious films like “An Inconvenient Truth,'' about climate change, and “Wonder,'' about a boy with a birth defect, and has supported some of Hollywood's most prominent activists. – An entertainment manufacturer. The film won 21 Academy Awards.
However, the company was never able to turn a profit while turning a profit, at least not consistently. Matt Damon's fracking drama (2012's Participant, “Promised Land'') struggles to match his 3D take on “Avengers: Infinity War.''
On Tuesday, eBay billionaire Jeff Skoll, the company's founder and the lifeblood of the financial world, pulled the plug. This was a decision based, at least in part, on its shrinking entertainment business. Participants rely on studios and streaming services to distribute their content, and these partners are particularly dependent on participants as they grapple with weak box office revenues, rising labor costs, and increased profits. It is cutting back on its offering of “niche” movies and shows. Pressure from Wall Street.
Streaming services like Disney+ and Netflix have started selling ads, and advertisers prefer apolitical content for all viewers. Broccoli-eating documentaries and dramas that explore underrepresented communities (both sweet spots for participants) are harder sells than ever.
“The entertainment industry has seen a revolution in how content is created, distributed and consumed,” Skoll said in an email to Participant employees seen by The New York Times. A spokeswoman said Mr. Skoll was not available for an interview.
Participants will immediately lay off most of their 100 employees. Upcoming films include “Out of My Mind,” about a nonverbal sixth grader with cerebral palsy, and “BLKNWS,” about what the media omits or misrepresents in its coverage of black culture. The skeleton staff will remain for a while to work on the film. .
Mr. Skoll has pumped hundreds of millions of dollars into Participant since it was founded in 2004. The company collaborated with partners such as DreamWorks and achieved critical and commercial success with films such as “The Help” (2011), which focused on racial reconciliation. Spotlight” (2015), about newspaper investigations into child abuse.
The participants' documentary film category was second to none. “An Inconvenient Truth,'' released in 2006, still ranks as one of his most successful documentaries in box office history. It cost $1.5 million to make and raised $50 million. Attendees also supported “The Cove,'' a harrowing 2009 documentary about dolphin hunters, and “RBG,'' a loving 2018 portrait of Justice Ruth Bader Ginsburg. (Attendees were dealt a blow in 2021 when longtime documentary film president Diane Weirman died of lung cancer.)
The company often operated in the red. When asked about profitability, participant executives pursed their lips and talked about the concept of a “double bottom line,” meaning performance measured by profits (first revenue) or social benefits (second). explained.
They said even loss-making Participant films could be “profitable” if the social impact was large enough. The Soloist, starring Jamie Foxx as a homeless musical prodigy, cost $60 million to make in 2009. It cost $38 million. But the movement was recorded as a victory in the participants' books, thanks to an action campaign that included school curriculum guides and the collection and distribution of 250,000 pairs of jeans to people living on the streets.
Over the past decade, other activity-oriented entertainment entrepreneurs have followed Participant's lead. Ava DuVernay's company, Alley, describes its mission as “to increase the work of Black artists, filmmakers of color, and women of all kinds.” Barack Obama and Michelle Obama founded Higher Ground Productions.
Somewhat paradoxically, participants themselves are rarely powerful.
David Linde, former chairman of Universal Pictures, has been running Participant since 2015. When he took over, the company was in crisis. Bets on films like “The Beaver” that focused on mental health didn't pay off. Mr. Linde's predecessor made the reckless decision to begin pivoting cable channels and expand into digital publishing. The number of employees at the company increased to nearly 300 people.
Mr. Linde shut down Pivot, ramped up Participant's social action campaign, and redirected funding to developing film and television ideas. The result was a string of critical and commercial hits, including the period drama “Rome,'' which focused attention on domestic workers, and the road trip-style racially charged film “Green Book.'' “Green Book” won the Best Picture Oscar in 2019. It cost $23 million and sold $322 million in tickets worldwide.
Linde declined to comment on Participant's decision to close.
Mr. Skoll's relationship with Participant has diminished in recent years. In a memo to participant employees, he said he wanted to focus more on philanthropic foundations that champion social entrepreneurship. In 2021, he moved from California to Florida due to wildfire smoke.
When he left the state, he wrote to Mr. X, “I did everything I could during my stay, and I am grateful.'' “Towards a new chapter.”