In their first debt offering since they regained their investment-grade status last year, Netflix is in the market for a $1.8B cash injection. Earmarked for “general corporate purposes” in the sec filing, this is doubtless intended to aid with its upcoming ambitious content expansion plans for the next few years. Our Blake & Wang P.A. entertainment lawyer, Brandon Blake, has all the details.

Brandon Blake

Debt and Expansion

The hoped-for cash injection will also be used to pay down Netflix’s existing debt. Netflix’s first debt offering since 2020, coming after Moody’s and S&P Global upgraded them to investment-grade status last year and further elevated them to near-blue chip status in 2024, is a notable one. It will kick off with $1B at 4.9%, coming due in 2034, and a further $800M offered at 5.4%, coming due in 2054.

Positioning the Streamer for the Coming Streaming Wars

Netflix currently owes about $14B in debt, making it less levered than most traditional media companies. With a stable outlook and significant content investment, especially in the growing live sports streaming arena, Netflix is still expected to generate double-digit revenue growth over the next 24 months.  This growth will primarily stem from an expanding subscriber base and improved monetization strategies, including Netflix’s recent price increases and advertising revenue.

This debt offering underscores Netflix’s strong financial position compared with the major streamers who have yet to hit full profitability. It seems they are hungry to capitalize on these growth opportunities as the streaming landscape becomes ever more competitive, and many investors expect to see significant consolidation going forward. 

As the company continues to evolve, industry observers will no doubt be keen to see how this financial flexibility translates into content and technological innovations, and if Netflix can keep its coveted No. 1 streamer title in a world where platforms like Disney+ are fast catching up.

When the news broke that the iconic Sundance Film Festival could be looking for a new home, much interest was ignited across the entertainment landscape in the US. Now, we know who the 6 finalists in the race to host this star of the film festival calendar will be. Brandon Blake, entertainment lawyer Los Angeles at Blake & Wang P.A., shares the details with us. 

Brandon Blake

6 Finalists, 1 Prize

Firstly, the good news for Utah. The festival’s current home, Salt Lake City and Park City, remain in the running to host the festival. Boulder, Atlanta, Cincinnati, Santa Fe, and Louisville are also contenders. Whichever city emerges victorious will host the festival from 2027, with its 2025 and 2026 editions still set to take place in Park City.

It’s a surprisingly dispersed list, with a couple of entrants (notable Louisville and Cincinnati) who were not even considered initially by industry experts. The dual inclusion of Salt Lake City, Utah’s capital, alongside its current Park City home, suggests that the festival may want to expand its footprint over two locations within the state. 

A Surprisingly Short “Short List” 

The festival’s formal Request for Proposal (RFP) process kicked off in May, closing in late June. Of the 15 cities that made the grade, these 6 shortlisted “finalists” will now host the Sundance board members and other key stakeholders as on-the-ground discovery and talks surrounding the festival take place. The final decision is expected either late this year or early next.

It’s speculated that these cities’ strong ties to local art communities has been the real drawcard. While only Atlanta and Santa Fe are specifically known for their film communities, all have a strong presence in the arts. While Park City still has a foot in the race, the concerns about how expensive the locale has become in recent years will hamper it among strong competition. For now, we can only wait and see who emerges as a frontrunner after the selection committee’s visits. 

Streaming giant Netflix has significantly increased its lead on its streaming rivals yet again. This time, to the tune of 8M new subscribers in Q2 of 2024. It seems its position as streaming’s most dominant platform is assured, at least for the near future. Brandon Blake, entertainment lawyer at Blake & Wang P.A., shares the news with us.

Brandon Blake

Increased Competitive Lead

Netflix has had an excellent run of late, managing to reverse its 2022 and 2023 woes significantly for one of the best turnarounds we’ve seen in recent years. The company currently has 277M active subscribers globally. This latest report will be one of the last we receive on direct subscriber numbers, with the company having recently announced it will not make these numbers (and the associated average revenue per user figures) public from Q1 in 2025.

The company also reported significant improvements in revenue ($9.56B in Q2) and operating income ($2.6B). Despite beating Wall Street predictions, however, its share price took a knock, based mainly on fears around slower growth in the future.

Looking Ahead for Netflix

Netflix predicts 14% revenue growth for the next quarter, although paid net additions will be lower than the same quarter last year, which benefited significantly from their paid sharing crackdown. They are also on the verge of launching a new subscriber website overhaul, which they claim will be the biggest update in the last 10 years. It will also bring some mobile-only features to their wider platforms. Netflix is currently targeting improving its share of TV time to help grow its goals.

Interestingly, Netflix also seems determined to resist the bundling trend we’ve seen work well for other streaming platforms. At least with other streaming platforms, though it remains open to deals with less direct competitors, such as mobile and Pay TV operators.

It seems like everyone wants their share of the location-shooting magic. Just last week,  the German government announced plans to introduce a new tax incentive program in its 2025 budget, hoping to make Germany a more attractive destination for international film and high-end series productions. In line with recent moves from the Australian government, they will offer a rebate of up to 30% on local production costs, funded collaboratively by the federal government and German states. Brandon Blake, our entertainment attorney Los Angeles from Blake & Wang P.A., shares the news.

Brandon Blake

A Hoped-For Incentive

German studios and industry groups have been pushing for this change for a while, seeing it as key to remaining competitive in the global entertainment market. After all, their close neighbors, like Spain and parts of Eastern Europe, have already been luring international productions to their shores with generous incentives. Ironically, even some key German productions, like the recent remake of All Quiet on the Western Front, chose to film outside the country due to this lack of local incentives.

The Details of the Incentive

The proposed tax rebate plan is expected to launch in early 2025. It still needs the necessary approvals from the German cabinet, parliament, and state governments. The criteria, entry thresholds, and eligible costs will be refined in the coming weeks, so we have little detail on those for now.

Berlin, alongside Munich, Hamburg, and the picturesque Bavarian Alps, were once popular filming destinations, buoyed by well-developed infrastructure, skilled film crews, and favorable exchange rates. However, it has lost prominence recently as neighboring European countries offered more generous financial incentives. Germany is hoping that this will be a key step in regaining a competitive edge in the local film arena. It will be interesting to see if it can regain that prominence in the wake of these new tax credit reforms.

The location filming landscape has slowly become more competitive over the last few years. With more and more domestic and international locations courting Hollywood dollars through lucrative incentive schemes and tax credits, producers are somewhat spoiled for choice. Now, there’s another key player to know— Australia. Blake & Wang P.A. entertainment lawyer, Brandon Blake, heads down under for this exciting new development.

Brandon Blake

Buoyed by Success

2024 releases Anyone but You and The Fall Guy were both shot in Australia. With the news that they will now practically double the location tax credit on offer (16.5% to 30%), more will be coming, too. Australia’s federal government has already passed this new legislation into law as of this week.

The location offset applies, of course, to local Aussie movies and other foreign fare as well. However, the production budget must top $13.3M for a film production to qualify, or $1M per hour for series-style content. This will position the country as a compelling alternative for Hollywood budgets and blockbusters alike. 

Boosting Local Business

This newly announced incentive is bound to power up Australia’s domestic work pipeline for screen workers and local businesses in a big way, as well as encourage international investment. After all, it’s hard to argue with a 30% tax incentive at the best of times. As more and more Hollywood content heads offshore for production, this should better position Australia as a competitive destination in the wider Asia-Pacific area. It will also favorably position it against top international production hubs such as Canada, the UK, and even domestic US locations.

With Australia already able to claim a role in bringing Godzilla x Kong: The New Empire, Kingdom of the Planet of the Apes, Thor: Love and Thunder, and, fittingly, Furiosa: A Mad Max Saga to life, it seems Hollywood would be a real drongo if it ignores this exciting new development. 

Last week, we were able to share the happy news that Sony will be taking over the iconic Alamo Drafthouse cinemas in one of the first studio-theater partnerships we’ve seen in decades. Today there’s some more good news, and our Blake & Wang P.A. entertainment attorney Los Angeles, Brandon Blake, is here to share it. 

Brandon Blake

6 Locations Reopening

In addition to taking control of the main Alamo Drafthouse brand, Sony will also be reopening 6 previously franchise-owned locations. These 6 locations closed under the pressures of the COVID pandemic, as the franchise company was forced into bankruptcy. 

This includes one location in Minnesota and 5 others serving the Dallas-Fort Worth area, which shut down in June this year. The locations should reopen this year in quick succession according to current plans. 

A Positive Buy-Back

It appears that Sony is willing to invest quite heavily in its theatrical game plan with this latest acquisition, as they jumped on the location closures near immediately, buying back the locations and making overtures to those staff members who lost their employment at the venues. 

As each location reopens, there will be “soft” openings in each first week, with select promotions and discounts to drive feet back through the door. Those who missed out on pre-sold tickets during their June shutdown will receive ticket vouchers, and previous concessionary deals (like Deadpool and Wolverine pint glasses) will still be honored. 

Sony’s acquisition of the Alamo was something of a landmark for the industry and one of the first re-entries into studio ownership for the theatrical industry we’ve seen in over half a century. While their final plans for this shiny new acquisition are not yet clear, it is speculated that they could be intending to funnel some of Crunchyroll’s anime offerings to the theaters, or simply that they want a “testing platform” for future releases. Either way, it’s always good to see new life breathed into these iconic parts of the Hollywood landscape.

While many of 2024’s releases to date have been optimistically predicted for $100M plus domestic openings, frighteningly few have delivered— and none since the start of summer. Then along came a happy Pixar picture about emotions, and suddenly we were back to something that feels like business as usual. Blake & Wang P.A. entertainment lawyer Los Angeles, Brandon Blake, sneaks a peek behind the Pixar curtain at why this film, of them all, was different.

Brandon Blake

Critical and Audience Acclaim

In a return to true form that fans of the studio will love, Pixar managed to deliver on 2 fronts with Inside Out 2. Not only did it woo critics, but general audiences, as well. Audience demographics are surprisingly diverse across genders, ages, and ethnicities, too. That’s not the only secret in the film’s bag, however. A huge contributor to Inside Out 2’s success has been a smart and multi-focal marketing campaign from Disney that has managed to resonate with potential viewers in a way no other film this year has. In fact, the easiest parallel to draw is to the (partly unintentional) Barbenheimer hype we saw last summer.

Record Breaking Performance

Not only did Inside Out 2 manage to meet (and blast straight through) that coveted $100M domestic opening for a final total of just over $154M, but it has also added the second-biggest animated launch of all time and the biggest debut since Barbie to the bag. It has been keeping up impressively during the notorious midweek business lulls, and last week took the eighth-biggest Tuesday for any film (and second-biggest for animation) ever, too. Overseas, it started at over $300M, another record among like-for-like markets.

It was a boost the ailing 2024 box office needed, for sure. Between Inside Out 2 and Bad Boys: Ride or Die, we have finally seen a positive uptick in year-to-date revenue and some box office impetus we hope to see grow stronger and stronger throughout the remainder of the year.

Until 2020 and the rescinding of the so-called Paramount Consent Decrees, studios could not own exhibition companies except under certain stringent conditions. With Sony taking over the Alamo Drafthouse Cinema, we see the first deal in 7 decades to put a major Hollywood studio in movie theater ownership. Blake & Wang P.A. entertainment attorney Los Angeles, Brandon Blake, dives into the news and the history behind it. 

Brandon Blake

The Paramount Consent Decrees

First enacted in 1948, the US Department of Justice banned film distributors from owning exhibition companies after a US Supreme Court ruling on the matter. These decrees were, in part, responsible for the dismantling of the older Hollywood studio model.

It was intended to remove some of the studio stranglehold over all aspects of the filmmaking cycle, from production and talent right through to release. However, it was a model designed for an entertainment landscape that no longer exists. In particular, it was designed with single-screen cinemas in mind, not the modern multiplex, where movie screening ‘favoritism’ and long runs are much less likely.

A Groundbreaking Deal for Historic Hollywood

While the Paramount Consent Decrees were relaxed in the 1980s and fully revoked in 2020, Sony’s purchase of the Alamo Drafthouse makes the company the first major Hollywood studio to enter such a deal. Since 2000, only Netflix and Amazon, neither traditional studios, have acquired theaters. In a fun twist, however, AMC Theaters, the world’s largest cinema chain operator, entered the distribution business last year with Taylor Swift’s Eras Tour.

The Alamo itself, an independent cinema chain with 35 locations, went into Chapter 11 bankruptcy in 2021, as a direct result of pandemic disruptions. According to an announcement from Sony early last week, the Alamo CEO, Michael Kustermann, will remain in charge of the chain, as part of a new Sony division he will helm, and the chain will still operate under the Alamo Drafthouse brand.

Let’s hope the rather impressive opening weekend performance of Bad Boys: Ride or Die this past weekend proves to galvanize the summer box office out of its slump. Our Blake & Wang P.A. insider, entertainment lawyer Los Angeles Brandon Blake, finally has some excellent box office news to share. 

Brandon Blake

Outperforming Expectations

With a global opening of $104.6M and a domestic debut of $56M, Bad Boys: Ride or Die has finally delivered a box office release that has outperformed its benchmark expectations. Rather significantly, as it was expected to reach $75M globally and $40M in North America. Notably, that domestic figure was reduced from an original $50M in the wake of a lackluster summer box office, and Sony itself was only expecting $30M+. Hopefully, this also means good things for the upcoming release of Disney/Pixar’s Inside Out 2, as well.

Wide Release

The third installment in the franchise, Bad Boys for Life, hit a franchise-high domestic opening of $62M, in a 3-day weekend that included Martin Luther King Day in 2020. Globally, it hit the $101M mark, so Bad Boys: Ride or Die has surpassed it there. As so-called “fourthquels” often significantly underperform “threequels”, and Bad Boys for Life also benefited from the known phenomenon where long-delayed sequels open well, this strong opening weekend is quite an achievement.

The film is currently open in 3,850 locations across North America and at about 92% of its international footprint. We are still waiting for releases in Malaysia, Italy, China, Japan, Pakistan, and Singapore.

Now, let’s hope that the film can echo Bad Boys for Life one more time, and show similarly strong legs. BB4L managed to clear $400M at the global box office, even as the looming specter of the pandemic closed in, significantly hampering at least its Chinese performance. That’s exactly the kind of far-reaching good news the box office needs right now.

Until recently, it has been easy to dismiss FAST streaming services as something of a cut-rate service, unable to deliver the same content standards and quality as paid streaming subscription services. However, one glance at the accelerating user uptake for services like The Roku Channel, Tubi, and Pluto TV suggests that it may be time to revisit that initial impression. Our expert from Blake & Wang P.A., You could review entertainment lawyer Brandon Blake, shows us why.

Brandon Blake

The FAST Advantage

There’s one thing that FAST streaming has going for it- an amazingly low barrier of entry. Sure, you have to trade that free price tag off against some advertising, but as paid streaming services increasingly push ad-supported models, that no longer seems like much of a disadvantage against that shiny $0 price tag.

At this year’s Upfronts, Fox gave Tubi almost as much stage time as it did its paid services. The FAST platform model is rising in popularity among users. As they typically draw on existing in-house, and occasionally licensed, content libraries, FAST services are cheaper to run, as well as to watch, offer up a large user base that’s appealing to advertisers, and some have even ventured into creating their own originals, too. 

Quality Content, After All

The argument has been, until now, that FAST channels can’t match the quality of content that paid services can. However, the stats suggest otherwise. Tubi has managed to take 1.7% of all TV views in the US in the last month according to Nielsen data, with The Roku Channel taking 1.4%. While that may not seem high, consider that Tubi is only just behind Disney, and Roku has outperformed both Max and Peacock to secure those spots. Pluto, although it only takes 0.8% on Nielsen’s rankings, has managed to be the first FAST service that made it to the Gauge, which again only rates services over 1% of market share.

Tubi has seen a 60% jump in monthly active users over the last year, now with a user base larger than Hulu, Paramount+, or Peacock. The Roku Channel will no doubt see a lot of interest in its recent live sports deals, including an MLB partnership. In short, FAST TV is now focused on high-quality content, and that is driving viewership for them. While they will likely not reach the heights of a major-tier streamer like Netflix on a FAST model alone, the days of dismissing FAST as a “bargain bin” alternative to “real” streaming are clearly at an end.