Overview of The Town: Peter Chernin on Backrooms and the Future of Hollywood
This episode centers on Peter Chernin’s unexpected role in Backrooms, the low-budget horror thriller poised for a huge box office debut, and uses that as a springboard for a broader conversation about where the smartest money is going in entertainment. Matt Belloni and Chernin cover creator-led filmmaking, streaming economics, studio risk-taking, vertical integration, podcasting, sports-adjacent investing, and the future of major media companies like Netflix, Fox, Warner Bros. Discovery, and Paramount.
Peter Chernin on Backrooms
How Chernin got involved
- Chernin’s company, Chernin Entertainment / North Road, co-financed Backrooms with A24 in a 50/50 split.
- The movie came from young producers who found the project online and brought it to Chernin’s team.
- He emphasized that the film’s day-to-day producing was handled by a small core group, even though many major names were attached.
Why this project matters
- Backrooms was described as a rare case of a cheap horror film from a digital-native creator potentially opening bigger than many studio blockbusters.
- Chernin sees this as proof that Hollywood must keep finding talent early, wherever it emerges:
- YouTube and TikTok today
- Broadway and MTV in earlier eras
- Roger Corman-style talent pipelines historically
His view on creator-led filmmaking
- Chernin said he has long believed in the creator economy and YouTube.
- He argued that creators are drawn to Hollywood because:
- bigger budgets make ambitious ideas possible
- theatrical release offers a communal, global audience experience
- He framed this as a natural evolution, not a novelty.
What Chernin Thinks Hollywood Needs
More risk-taking
- Chernin repeatedly argued that studios are too dependent on sequels and existing IP.
- His core belief: Hollywood is better when it takes smart risks.
- He said the best studio jobs become more fun when executives are willing to make bold bets that can fail.
Less vertical integration
- One of his strongest points was that the industry is harmed by platforms owning both:
- the content
- and the distribution
- He warned that rights being locked up in perpetuity reduces the creative marketplace and weakens back-end incentives.
- He believes the industry could benefit from something analogous to the old regulatory protections that limited how much broadcasters could own.
Why back ends matter
- Chernin argued that eliminating meaningful back-end participation has reduced the incentive structure for creative people.
- In his view, failure and upside are essential to creativity:
- people learn from failure
- artists need real reward potential
- too much corporate control makes the system less vibrant
Streaming, Netflix, and the Platform Wars
Netflix
- Chernin said he would never bet against Netflix given its track record.
- At the same time, he agreed that Netflix’s obsession with engagement should not come at the expense of quality.
- He doesn’t think Netflix is losing its way, but he does think its core mission must remain high-quality video programming.
Other streamers
- He suggested that most streamers, except Netflix, are underinvesting in content.
- His view: many of them are seeing high churn because there isn’t enough fresh programming on a regular cadence.
A possible Netflix studio acquisition?
- Chernin said he was shocked by the Warner Bros. deal rumors and by how quickly Netflix moved away from it.
- He does not think Netflix is likely to go after another major studio like Sony, Universal, or Lionsgate.
Warner Bros., Paramount, and Media Consolidation
On the Warner/Paramount merger possibility
- Chernin said he’s not opposed to the deal in principle.
- His reasoning:
- both companies are subscale
- the industry needs another strong competitor
- He believes the Ellison family can afford the kind of aggressive investment such a deal would require.
His bigger concern
- He is less worried about consolidation than about vertical integration.
- He sees vertical integration as the bigger threat to Hollywood’s creative ecosystem than mergers themselves.
Fox After Rupert Murdoch
- Chernin said the Murdoch family succession issues have largely been resolved.
- He believes Fox is in good shape, especially because of smart new-media moves like:
- Tubi
- podcast investments
- He credited Fox with avoiding major mistakes in recent years and adapting well to the new media landscape.
Chernin’s Investment Philosophy
What he looks for
- Chernin describes himself as relentlessly curious about:
- technology
- audience behavior
- emerging platforms
- global content creation
Areas he’s especially bullish on
- Podcasting, but only at the extremes:
- very large companies
- highly targeted niche companies
- Sports-adjacent businesses
- youth sports
- pro lacrosse
- sports betting
- sports media
- Creator and digital-native businesses
- Global content production
Companies he highlighted as successful investments
- Crunchyroll — early investment in anime streaming; cited as a major success story
- Barstool Sports — another major win
- Oura — wearable health/fitness ring business
- Collectors — collectibles and grading business
- MeatEater — outdoor/media brand
Box Office Segment: Backrooms Prediction
In the post-interview “Call Sheet” segment:
- Tracking for Backrooms was said to be around $40 million
- The hosts felt tracking may be undercounting it
- They both leaned over 45 million for the opening weekend line
- Their reasons:
- huge pre-sales
- strong youth/YouTube audience passion
- A24’s unusually aggressive marketing push
- the movie feels like a genuine event and conversation starter
Main Takeaways
- Digital-native creators are becoming legitimate Hollywood talent.
- Hollywood needs more risk, not more repetition.
- Vertical integration is the real long-term threat to the creative ecosystem.
- Netflix remains the strongest player, but engagement alone is not enough.
- The smartest media investors are looking global, creator-first, and sports-adjacent.
- Backrooms is being treated as a case study in how internet-born IP can become a theatrical phenomenon.