The ear drum is constantly renewing itself and shedding old dead skin, which becomes wax. A nice, straight and flat ear drum is important in allowing the dead skin to fall off the drum and be carried away through the ear canal.
When the pressure behind the ear drum, in the middle ear space, is not well controlled, the ear drum can become sucked into the middle ear. This distorts the shape of the ear drum and dead skin can no longer fall away from the drum easily. As this dead skin accumulates, stuck to the drum, it begins to expand or grow. This growing sac of dead ear drum skin is termed a cholesteatoma (pronounced ko-lee-stee-a-toma).