Axios

LOS ANGELES — Media companies should focus on creativity instead of growth, The Chernin Group co-founder and North Road chair Peter Chernin said at a May 3 Axios Live event.

Why it matters: Original content gives smaller studios a rare opportunity to compete with industry titans.

Axios' Dan Primack spoke to Chernin for the event, which was sponsored by Edelman Smithfield.

Fun fact: At the time of the interview and a first for the streaming platform, Chernin's production company had the No. 1 TV show ("Man on Fire") and movie ("Apex") on Netflix.

What they're saying: "You can't beat an incumbent on scale," Chernin said. "You beat an incumbent on creativity."

• Studios are also "wildly over-focused on sequels," he added. "Those companies should be in the business of creating and inventing original" intellectual property.
• "The most exciting things happen where young people and talent and technology come together."

Case in point: North Road's new movie "Backrooms," directed by YouTube creator Kane Parsons and based on a 2019 viral internet post, is projected to be "the most successful new horror movie in the last several years," Chernin said.

What's next: Chernin recommends that major platforms rethink their approach to keeping everything in-house when it comes to ownership, production and distribution rights.

• "Embrace independent, creative companies" to stay competitive and relevant, Chernin said.
• "Resisting technology is a stupid idea," he added.

Content from the sponsor's segment:

Lisa Leiter, Edelman Smithfield's managing director and U.S. co-head of financial services, told Axios publisher Nicholas Johnston that the rise of AI is causing concern.

• "People are worried about losing their jobs," she said, "and there's a fear that [AI] could really damage society."
• Companies should be clear, concise and specific as they share information with the public to reinforce trust, she added.