Key Takeaways:
- The Warner Bros. deal is expected to continue playing out in 2026, with Netflix and Paramount vying for control.
- Walt Disney Co. will name a new CEO in early 2026, with Josh D’Amaro and Dana Walden among the top contenders.
- The role of AI in Hollywood will continue to be a hot-button topic, with debates over copyright infringement and the use of AI-generated content.
- Saudi Arabia is expected to increase its investments in Hollywood, despite controversy over the country’s human rights record.
- The 2026 box office is expected to be a big year for theatrical revenue, with a slew of potentially big blockbusters slated for release.
Introduction to the Year Ahead
It’s been a turbulent year in Hollywood, with devastating fires, ups and downs at the box office, and big industry shakeups. The year 2025 began with the devastating fires in Altadena and Pacific Palisades, which destroyed the homes of many in the industry and stymied production and livelihoods for others. The theatrical box office also experienced a rollercoaster year, with some months being dire and others being promising. Additionally, the industry saw significant shakeups, including the completion of the Paramount-Skydance merger and Paramount’s initial bid to buy Warner Bros. Discovery. As we look ahead to 2026, there are several storylines that will be worth following, including the ongoing saga of the Warner Bros. deal and the naming of a new CEO at Walt Disney Co.
The Warner Bros. Deal
The Warner Bros. deal is expected to continue playing out in 2026, with Netflix and Paramount vying for control. The deal, which has been approved by Warner’s boards, still needs shareholder and regulatory approval, which is far from assured. Paramount has made a direct appeal to Warner’s shareholders, and the company’s CEO, David Ellison, is clearly not giving up without a fight. His father, tech billionaire Larry Ellison, has personally guaranteed $40.4 billion in equity needed for Paramount’s proposed takeover of Warner Bros. Discovery. A win by either bidder would fundamentally change Hollywood and raise antitrust concerns, experts say. It could also make the already bleak jobs situation in the film and TV business even more difficult.
New Leadership at Disney
Walt Disney Co. is expected to name its new CEO in early 2026, drawing to a close the most-speculated-about succession decision in Hollywood. With current CEO Bob Iger’s second retirement looming, the stakes are high for the next Mouse House chief. Disney has already gone through the succession process once, but the company’s board ended up firing Bob Chapek in 2022 and reinstating Iger. Josh D’Amaro, Disney’s theme parks and experiences chief, is viewed by many insiders as the leading contender, though other internal candidates are also said to be in the mix. Whoever takes over Disney will have to navigate a changed landscape in Hollywood, particularly once the Warner deal is completed, as well as the uncertain future for the theatrical box office and the ongoing challenges of linear TV.
The Role of AI in Hollywood
The role of AI in Hollywood will continue to be a hot-button topic in 2026, with debates over copyright infringement and the use of AI-generated content. In 2025, we saw fierce discussion about AI-generated composite Tilly Norwood, as well as a growing number of lawsuits or cease-and-desist letters from studios against AI companies for alleged copyright infringement violations. Sam Altman’s Open AI earlier this month reached a major licensing deal with Disney to use more than 200 characters in its text-to-video tool, Sora. However, not everyone was thrilled with the announcement, and a group of prominent filmmakers and actors have launched a new coalition to advocate for the rights of creators amid the growing AI industry. With labor discussions coming up next year between studios and the Hollywood unions, expect AI to be a front-burner issue.
Saudi Investments in Hollywood
Saudi Arabia is expected to increase its investments in Hollywood, despite controversy over the country’s human rights record. The kingdom’s sovereign wealth fund was involved in several of the biggest Hollywood deals this year, including Paramount’s bid for Warner Bros. Discovery and the leveraged buyout of video game giant Electronic Arts Inc. Given Hollywood’s shaky finances, more Saudi investments will likely flow into U.S. entertainment and sports arenas in the coming year. Already, major studios are looking to grow their footprint in the Middle East, with Disney planning to build a new theme park in Abu Dhabi and rival Universal eyeing a possible project in Saudi Arabia.
The 2026 Box Office
The 2026 box office is expected to be a big year for theatrical revenue, with a slew of potentially big blockbusters slated for release. There’s a stacked lineup of movies, including Sony Pictures’ "Spider-Man: Brand New Day," Legendary Entertainment and Warner Bros.’s "Dune: Part Three," Christopher Nolan’s "The Odyssey," Disney and Marvel Studios’ "Avengers: Doomsday," Universal Pictures’ "The Super Mario Galaxy Movie," and Disney and Pixar’s "Toy Story 5." This will be a bit of a litmus test for the industry, as it will show whether big superhero movies can still bring out crowds and whether favorite franchises like "Toy Story" can find continued success. Additionally, movies like "The Devil Wears Prada 2" will be worth watching, as they may finally start making good on the promises made after the success of "Barbie" to serve female audiences.
Conclusion
In conclusion, 2026 is shaping up to be a busy year in Hollywood, with several major storylines worth following. The Warner Bros. deal, the naming of a new CEO at Disney, the role of AI in Hollywood, Saudi investments in the industry, and the 2026 box office are all expected to be major topics of discussion. As the industry continues to evolve and navigate the challenges of the modern entertainment landscape, it will be interesting to see how these storylines play out and what the future holds for Hollywood.