A Federal Film Tax May Be On The Way After All

While the Trump administration has moved on from when it was first talking about offering federal-level incentives to rehome US production, the industry, it seems, has not. At a time when the US as a whole is now forced to compete with lower-cost foreign destinations to attract productions, it could be an interesting sweetener, as our Blake & Wang P.A. best entertainment lawyers in los angeles, Brandon Blake, shares.

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Brandon Blake

The US Production Flight

For those tracing the flight of productions from US shores, there has long been one piece of the puzzle missing: a federal film office, or even a tax incentive that could put the government to work to rebuild the domestic location industry. 

While the initially proposed “100% tariff” on film production outside the US was dead in the water to start with, we are finally seeing some more grounded proposals reach lawmakers, as well as several high-profile celebrities trying to rally attention for the cause. 

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Growing Momentum

The same talk reached this year’s CinemaCon, where the MPA Chairman and CEO noted that the campaign is making progress, as well as highlighting recent changes in New Jersey and California. 

If, as he said, they are indeed engaging at the Congressional level to try and implement a federal film tax incentive and making meaningful progress, this could be the missing piece of the puzzle needed to support the domestic film industry at a national level, instead of relying on states alone. 

It’s not much to go on (for now), but it’s the most concrete sign that something is underway that we have seen so far. Should such an incentive finally see daylight, there would be a lot of refinement needed, from whether it will be capped to who will be eligible, and there would doubtless be an interval for the states themselves to weigh in. However, it’s good to know a helping governmental hand could still be in the works- and one a lot more realistic and workable than another tariff, too.

What’s Hot Among Streaming Ratings Right Now

As Nielsen releases another edition of its streaming Gauge report, it’s time to check in with what’s happening across streaming networks and what properties are seeing the most traction with their audiences. Entertainment Attorney Los Angeles Brandon Blake, at Blake & Wang P.A., fills us in on the latest.

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Zootopia Wins Again

In what will be a surprise to no one, the streaming charts for March 9 to March 15 were dominated by the streaming debut of Zootopia 2. The sequel had immense success at the box office and as a premium SVOD release, and it continued with its broader debut, drawing 1.72B minutes of viewing time from its March 11 release. Zootopia also saw a resurgence of interest, at 381M, more than double compared with the week before.

Other Strong Releases

This week, however, Zootopia 2 was not alone. One Piece, a Netflix offering that hasn’t seen screen time for just over 2 years, came back to its best weekly streaming total to date, closing in on Zootopia with 1.62B viewing minutes. Its best prior total was 1.39B. Virgin River, which ironically came in at the same 1.39B, also continued to do well, despite being in its seventh season.

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The other premier of the week, Scarpetta, based on the Patricia Cornwell books featuring the title character, brought in 952M, enough to take 6th place among all titles, and 4th for original series. It was beaten out by the ever-popular The Pitt, at 1.02B.

Given that Nielsen’s streaming ratings only cover US watchers using a TV set, and don’t include viewers accessing from other sources, such as computers and mobile devices, that’s quite an achievement for a mid-March week. It will be interesting to see if Zootopia 2 continues to pull in audiences in its second week of release, or if it is simply the lure of a new Disney film for families with little ones to keep entertained while waiting for spring to arrive.

Do Streamers Even Want You to Go Premium?

Given the major push towards ad-supported tiers we’ve seen from the largest streaming platforms over the last few years, you may have walked away with the distinct impression that they’d really love you to take on an ad-supported package. But, as streaming matures, that may not be the case, as Brandon Blake, our entertainment lawyer at Blake & Wang P.A., is here to break down.

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Brandon Blake

A Return to Prime Time?

If you’ve been paying attention to the streaming environment of late, it might be starting to feel a lot like the heyday of broadcast. First, we saw the ads return. Then it was mid-programming advertising and lower-cost, ad-supported tiers. And now, live sports and simpler programming, like reality TV, is being increasingly used to both lure in subscribers and pad up slates that can no longer sustain the splashy big-budget productions that were once top of the streaming food chain.

However, the price tags associated with streaming look a lot different from the Pay TV era. And, currently, the price hikes keep coming. 

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The Advertising Irony

This also raises a rather ironic catch-22. Advertising has become increasingly important for streaming and is one of the major current revenue drivers for the streaming model. Not just through raw advertising dollars, but also through the lure of those cheaper ad-supported tiers.

However, advertising has never been a seminal part of a good user experience, and most platforms still want to offer a way for users to bypass ads. 

Yet, as price increases widen the value gap between the two categories of tiers, and more and more households carry multiple subscriptions, ad-supported is becoming the go-to. And with enhanced targeting and new ad offerings, many streamers are seeing their ad tiers become a whole lot more lucrative than their non-ad offerings. 

It looks like the Pay TV mechanism may have passed its heyday, but the same lure of ad-supported programming lives on after all.

HBO Finally Makes Its Way to the UK and Ireland

With a splashy world-first drone show to drive home the message, it’s now official: HBO Max has arrived on the UK and Ireland’s shores, as an entertainment lawyer from Blake & Wang P.A, Brandon Blake, is here to share.

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Brandon Blake

A Launch Long Coming

The UK has had some access to HBO Max through licensing deals with NOW and Sky. However, direct subscription was itself held back due to those deals. With those agreements expiring this year, a local launch is now possible. 

This will bring even more popular HBO content, including the hit show The Pitt, which has been unavailable in the UK for a while now, to UK and Irish screens alongside older library titles and other current shows.

Those with existing subscriptions to Sky Cinema, or the NOW Entertainment HBO Max offering, will be partially grandfathered in as part of the new launch. Multiple tiers will be on offer, starting at £4.99 and culminating, of course, in the Premium tier with an ad-free subscription.

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Splashy Celebration

The launch was celebrated last week at the Queen Elizabeth Hall, with HBO’s lineup of actors and shows creating a star-studded lineup. And, of course, the attention-stealing flight of 500 drones, bringing to life some of HBO Max’s most iconic titles in a splashy light show that was itself a world-first.

While there are some questions hanging over the HBO Max platform, given that Paramount, the upcoming new owners of Warner Bros, has its own streaming platform, HBO Max has become such a globally recognized brand that it is likely to live on in some form or other, even post-merger. But for now, at Warner Bros at least, it seems like business as usual- and now the UK can enjoy its offerings as well.

Netflix Recommits to Festival Film Acquisitions

Now in its post-Warner Bros phase, what lies ahead for Netflix? Whatever the future holds, it will include even more festival acquisitions, as Blake & Wang P.A. entertainment lawyer, Brandon Blake, shares with us. 

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Festival Activity Ahead

Netflix film chief, Dan Lin, who has greenlit 88 films in his 2-year tenure at Netflix, has shared that they should release seven movies a month going forward. Now including four different event films each year, with Greta Gerwig’s Narnia set to be this year’s Thanksgiving release.

That’s an awful lot of movies for a streamer without its own significant studio arm. It’s also clear that Netflix has noticed the value that the legacy studios have uncovered in their content libraries, and is now keen to build its own licensable library to sell on.

However, for many, the question is whether Netflix is still the major acquisitions player it once was, when its deeper pockets allowed it to be the pace-setter for the indie film markets across Cannes, TIFF, and Sundance. Perhaps it’s the record amounts those sales went for that’s really being missed. 

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Eying Cannes Already

While Lin was quick to note that they are still building their own movie releases and aren’t fully reliant on acquisitions, he reiterated that they intend to be aggressive in the acquisitions market as well, with Cannes their next target for prestige potential.

It’s worked for him before. Emilia Pérez, one of his first acquisitions, did magnificently for Netflix, and they also saw success off the back of Train Dreams more recently, even earning an Oscar Best Picture nomination. 

However, Netflix was noticeably quieter at Sundance this year, and we have also seen a swing to more commercially-targeted titles from them as well. Will they be putting their money where their mouth is, as the old saying goes? We’ll have to wait and see what happens on this year’s Croisette. 

Box Office Sees a Victory for Pixar

Pixar will certainly be happy with their latest box office results, as they see their biggest opening in almost a decade for one of their originals. To catch us up, we have Brandon Blake,  the entertainment lawyer Los Angeles with Blake & Wang P.A.

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Welcome Record for Pixar

Hoppers was also the main success at the box office for the weekend, bringing in $46M, with a total haul of $88M globally over a nicely synergistic 88 markets. That was finally enough to topple their release of Coco in 2017, which has been the best-performing original title for them to date.

It will be welcome news to Pixar itself, which has slipped from the animation world’s darling to a much harder sell in recent years. Other than their franchise offerings, like Inside Out 2, we’ve seen a spate of lackluster theatrical releases from them of late.

Scream Beats Out the Bride

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In another surprising result, while The Bride! Didn’t see the theatrical success it was expected to on its debut weekend, bringing in only $7.3M domestically for a total of $13M, Scream 7 is finding a warmer on-screen welcome than you would think from critical feedback. Although there was a notable falloff for its second weekend, it still successfully brought in another $15.6M, bringing its cume globally to just short of $150M.

Hoppers may have been the only title in the top 3 to really make a splash this weekend, but it was certainly the best kind of splash to make. There are a few things that have contributed to its success so far, including a deal to run the film on IMAX screens for daytime viewing. Interestingly, there was a large percentage of teens, younger adults, and even older adults going to see the film as well, so it has successfully escaped being branded a family-only title. Perhaps the Pixar magic is, once again, on its way up.

They Have the Warner Bros. Deal, Now What Will Paramount Do with It?

With the Paramount-Warner Bros deal all but done, the question now is what a Warner Bros. under Paramount leadership deal will mean. That’s the question Blake & Wang P.A. see entertainment attorney Los Angeles, Brandon Blake is here to answer today.

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Brandon Blake

Lofty Promises

We’ve seen promises of 30 movie releases a year, and a merger ahead for HBO Max and Paramount+. Add to that a promise to keep the linear cable channels pumping, and $6B in savings to come, without major labor cuts. Then, add committed theatrical windows, and wrap it all up in a promise to revitalize the Warner Bros business. Oh yes, Warner Bros will also be remaining independent, for the most part.

That’s certainly pretty much a tick-for-tick list of what the industry wanted to hear about Warner Bros. future. How realistic it is, however, is another question.

The Studio That Can’t Find (the Right) Owner
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Warner Bros has done fantastically at the box office in recent years. But it’s still become known at least as much for its many changes of ownership. Neither Discovery nor AT&T could make it work.

And Paramount will be going into this deal with $79B of their own debt, with only $6B in cost-saving accounted for. Whether they can really shape the needed savings to make all this work without impacting labor or production, as they claim, we will have to wait and see.

It would also be unprecedented. Especially given how many of Warner Bros. assets, which Paramount will be taking over in full, duplicate their own. Think 2 production studios, 2 news networks, 2 marketing departments, 2 major SVOD platforms. It’s a long list. One that makes these promises seem unlikely at best.

Is this a sign of real vision from Paramount? Or just some wishful thinking? We shall have to see what comes as reality sets in.

Big Changes Ahead for UK Streaming

Is a streamer also a broadcaster? For the UK, at least, that answer is a strong “Yes.” There are big changes coming to streaming regulation in the UK, as an entertainment attorney at Blake & Wang P.A., Brandon Blake, examines below.

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More Like Broadcasters

This change will mean new standards and new accessibility codes for streamers with more than half a million UK users operating in the UK. A number which now includes Netflix and Disney+ alongside Prime Video. The regulation happens through the UK media regulator, Ofcom.

These changes will be brought into the Media Act 2024 as secondary legislation. While there are a number of shifts and changes to understand, effectively, they will now face the same Ofcom scrutiny and rules traditional broadcasters do. 

Tier 1 Services

The biggest change will be streaming’s promotion to “Tier 1” services. That means a new VOD standards code, aimed at keeping harmful and offensive material out, and driving accurate impartiality as a standard. Ofcom will gain powers to investigate and take action where that code is breached. There will also be minimum accessibility feature requirements. For example, 5% must be sign language accessible, while a tenth of the catalog must be audio-described.

 

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This is a change that, perhaps, was inevitable in many ways. As streaming becomes everyone’s de facto way of enjoying entertainment, it has to move from the looser privileges of an emerging tech into a fully mature format. It’s really no surprise that the UK would be one of the first to move on to tighter regulation. It’s had a tough approach to these issues for a while now. 

With this now the first regulatory framework to see such updates, there’s a core question still to be answered: will this now be the “new normal” for streamers operating internationally? Or remain in the UK alone?

Department M May Buy a Stake in Neon – But Who Are They?

While we have known that Neon was exploring a sale or new funding for a major stake in the company for a while, many may be surprised by who is at the front of the queue to take that stake: Department M. As that likely doesn’t mean much to anyone but the most dedicated film connoisseur, we have an entertainment lawyer Los Angeles at Blake & Wang P.A., Brandon Blake, to fill in the full story.

 
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Neon Expansion

Currently, Neon is one of the biggest players in domestic specialty offerings, and they have been a major buyer at almost every post-pandemic film festival to date, including 6 consecutive Palme d’Or winners.

It’s currently unclear exactly how large the stake in Neon that is up for grabs really is. However, it is currently backed by a private investment consortium about which few people have any real knowledge. And Neon is playing the (potential) deal close to its chest, with no official statement on the matter.

Who is Department M?

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Department M is a production company founded just over 2 years ago and led by Mike Larocca and Michael Schaefer. Larocca was the president and co-founder of the production banner fronted by the Avengers directors, AGBO. Schaefer moved to Department M from his former role at New Regency.

You may recognize some of their titles, of which The Christophers, to be released by Neon, is the latest. Neon picked up the title at last year’s TIFF. They were also responsible for The Hand That Rocks the Cradle’s recent remake, and the Jo Nesbø novel adaptation, Blood on the Snow.

We last heard news of a potential sale for Neon in 2022, but the deal fell through. With a couple more Oscar nominations and wins under their belt, and the mass commercial success of Longlegs to boot, Neon is currently a hot property, but recently had something of a brain drain, which may be why they are looking for new partnerships in the first place.

Roku Gains Again

Roku may have finally gained some mainstream prominence, but it remains one of the least considered streaming services. Despite that lack of real market saturation, the company continues to perform strongly, with December 2025 now its all-time high month, as Brandon Blake, check entertainment attorney Los Angeles with Blake & Wang P.A., is here to share

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Brandon Blake

Positive Net Income

Alongside that monthly high of 6.3% of all TV streaming, Roku also had a strong fourth quarter. Their $1.5B of net revenue is a 16% uptick on the year and managed to exceed Wall Street expectations. Net income was $80.5M, or $0.53 per share. Platform revenue was the bulk, at $1.2B, an 18% boost driven mostly by video ads and interface improvements.

This was also their biggest quarter so far for premium subscriptions, which includes Roku’s third-party bundles. Quite logical, really, given this was also the festive season, and so holiday promotions would have lured in some new eyes. Roku has also been busy with expanded sports offerings, which, considered alone, saw a 75% uptick in interest.

Full Year Results

Given this was the last quarter for the company, we also have their full-year performance. That sees $4.7B in net revenue, or 15% up for the year. Platform revenue again did fantastically, at 18%, or $4.1B. They also saw a fully positive year, hitting $88.3B for net income. To round out the picture, they accounted for 145.6B streaming hours over the year, another 15% gain.

That’s a strong place to start the new year off, too. Currently, they are predicting $1.2B in revenue and $50M in income for the coming quarter, expanded to $5.5B in revenue and $325M for income over the year.

With a new streaming service recently launched, called Howdy, Roku is definitely starting its new year in a very strong place, even though it does not report its full subscriber numbers.