A team of UK-based producers has launched a new indie financing fund that will help boost funding for independent TV and film producers in the country. Our local entertainment lawyer, Brandon Blake of Blake & Wang P.A. is here to share the news.

Brandon Blake

Unusual Source, Unusual Candidates

Evan Leighton-Davis and Ben Bond, both UK-based producers, are the originators of the new financing opportunity, to be called Heartseeker Media. They will be backed by a rather unusual, but growing, funding source for the entertainment industry- private equity investors. In this case, mostly local high-net-worth supporters.

Equally unusual for these sorts of funds, it will offer developmental funding to independent producers, spanning the $100,000 to $1,000,000 range. Their first suite of projects includes period drama Monstrous Beauty, horror The Severed Sun, and drama West the Road. The Severed Sun will be the first of those to see screen time, with shooting already wrapped.

Full Indie Slates

At its core, Heartseeker seeks to boost the development of fuller indie slates from newer production teams. Development money like this is critical to give directors, producers, and writers on the indie side of the industry the space and funding to properly develop materials instead of rushing them to production.

The fund is slated to help out 6-10 productions a year, with a focus on dramas and genre material.

As the 2023 box office rather aptly demonstrated, there is still a lot of market for independent and small-scale films at the box office. Working outside of established studio norms, however, finding the budget and backing to truly bring these stories to life has been an industry issue as long as it has existed. It’s always nice to see another funding source looking to work with independent producers to breathe life into these projects. We will be watching what comes from Heartseeker’s funding with great interest indeed.

Looking back to the final box office weekend of 2023, it’s clear that originality won the day. With only one sequel and two franchise titles (Aquaman 2 and the Hunger Games prequel) in the top 10 for the weekend, and dull performances from both, it was a weekend where fresh, new stories helped save the day. Brandon Blake, our entertainment lawyer from Blake & Wang P.A., celebrates the films that helped us cross the coveted $9B mark in the closing moments of the year.

Brandon Blake

Originality as a Drawcard

When we were discussing the December box office, few saw the potential for Wonka, then in its third week, to vastly outperform the shiny new release of Aquaman 2. However, taking $24M over the three days, it managed to stand strong in the number 1 position. Yes, $24M for the post-Christmas holiday weekend isn’t the best figure we’ve ever seen, but in a year as unprecedented as 2023, let’s not split hairs. With a budget of $125M to recoup, Wonka is well on the way to passing $200M domestically and $500M globally by the end of its theatrical run, which is more than satisfactory.

In comparison, Aquaman 2 took just $19.5M in its second release week, with a budget of $205M to recoup. The Color Purple did well, with $45M in its first week, despite a more limited release scope than the other popular titles.

The Little Hits That Could

But despite some solid takings from these larger-budget productions, the $9B box office has a lot of thanks to give to two breakout hits. The Boy and the Heron from Studio Ghibli, which we always knew was going to attract some buzz. And the absolutely unexpected success of Godzilla Minus Zero. Without these two unexpected powerhouses continuing to hold as they did, we would not have crossed the finish line with that $9B in the kitty.

December 2023 proved to be a juggernaut of a month for specialized releases, with other small- and medium-sized releases holding well and contributing their bit. All in all, while it may not quite have been the December we predicted, they came together to make it one to remember.

Exclusive streaming deals are out, and the linear model of licensing is back. At least so it seems! As what some are calling the ‘blank check’ era of streaming draws to its definitive close, more and more studios are realizing the value of what they already have, as well as the lure of shiny new properties. Our local entertainment lawyer Los Angeles, Blake & Wang P.A.’s Brandon Blake, looks at this thorny new issue in more depth.

Brandon Blake

Licensing: A Model to Keep Revenue Flowing 

The issue of ‘lost shows’- shows that run on an exclusive streaming platform only to disappear from all accessibility after that initial run- is one that has been raised many times as the streaming era passes its infancy and establishes itself. Not only does this have knock-on effects on the preservation of these shows, it is also a source of frustration for viewers. Additionally, this sometimes ruthless removal of ‘big’ content has led to a public perception against streaming. Although not accurate- of the seven biggest streamers using SVOD models, only Amazon Prime Video has had its catalog shrink in the last 2 years- there is still a perception that it is being done to create ‘artificial scarcity’ and drive up subscription prices. 2023’s experience seems to have backed this, with acquired titles dominating the streaming Top 10 lists. Let’s also not lose sight of the fact that Netflix built its reputation on the back of being ‘the place to find shows traditional networks weren’t running’. 

Balance Needed

However, of those acquired titles, there is definitely some ‘top loading’. Only 1,000 of the best-performing titles made up 70% of the streaming view time. On the flip side, niche streamers like Roku and Pluto have done well in buying up more obscure programming (that can be licensed cheaply) and selling ad inventory to show it. In many ways, it works- viewers want something, advertisers have the security of a ‘known’ item, and everyone wins.

So, as always, it isn’t an easy answer. Simply loading up libraries with any old title isn’t a shortcut to more views and revenue. But as streamers start to warm up to the idea of sharing IPs across platforms, there’s a lucrative new niche to be explored. 

The strikes are finally over- now what? For Los Angeles, which saw a massive downturn in economic activity for the city as a knock-on effect from the strikes, the answer is less, ‘business as usual’ and more ‘bring us your work- all of it’. In the hopes of boosting cash-generating activities from its primary business, we’ve seen the Los Angeles City Council vote to expedite entertainment projects using the LA area. Blake & Wang P.A. entertainment lawyer, Brandon Blake, is here with the exciting news.

Brandon Blake

Unanimous Vote

Unusual as it is in any political arena, the vote passed unanimously, with all 14 attending council members voting for the new resolution. Now, they’re headhunting policy issues and other resource bottlenecks that could be holding back the local TV and film production industry. Once this research is presented- which should be within the next two weeks- the intent is to put any discoveries into action. 

Currently, acquiring permits to film in the city is one of the anticipated points for revision. After all, if a producer can’t pull the permit they need fast enough in one area, they will take their business elsewhere- and with it, the jobs and economic boost that could have come.

This new motion pairs up with one from the Los Angeles County Board of Supervisors, again passed unanimously, to consult with FlimLA on an economic development firm to help boost location interest in LA once again.

Six Weeks Post-Strike

While the major focus of the 118-day SAG-AFTRA strike action has been the industry workers directly affected, no one can deny that the Hollywood shutdown has had a ton of knock-on impacts on prime filming destinations like Los Angeles. Small businesses in these locales typically rely heavily on the increased foot traffic and boosted business having a production in town can bring.

So for location scouts looking for the ideal filming destination in 2024, LA’s star is set to rise once again. We’ll be keeping a careful eye on further developments arising from these new economically-stimulating measures.

With the much-welcomed news that SAG-AFTRA has ratified their new 3-year contract deal with the AMPTP, it is time to look ahead to Berlin’s European Film Market, the first strike-free film market we will see. Blake & Wang P.A. entertainment lawyer in USA, Brandon Blake, sets the scene.

Brandon Blake

A Project Bonanza

As we finally see not only writers but also actors get back to work post-strike, the European Film Market is expected to benefit from a crop of new projects delayed or postponed under this year’s uncertain strike environment. This climate of anticipation is being boosted by some promising feedback from buyers and sales agents who held back projects in the uncertainty of the SAG-AFTRA waivers that were offered.

This would be a welcome indie industry pick-me-up after dull deal making at both the Toronto Film Festival and American Film Market this year.

Sold-Out Spaces

Despite being almost two months out from the market, reports are that exhibition space is already nearly sold out, with 11,500 participants expected. The 2024 festival has already added a new ‘pop-up’ space, the Gropius Dome, to facilitate networking and get-togethers. This will also be the inaugural year for the AfroBerlin platform, focusing on the African film industry and the increasing push for locally-made, internationally appealing content.

Additionally, we will see ‘Reel Time’ launch a day before the event, offering promo reels of upcoming and latest titles as a pre-market show. These will be themed by genre and overall themes like arthouse, animation, and horror. Italy is set to be the ‘country of focus’ for the special, highlighting the Italian film industry.

Let’s hope to see the first strike-free film festival on the industry’s calendar hit all the right notes with sellers and buyers alike, to pave the way for a 2024 in which the indie film industry can get back to what it does best without labor woes to hinder it.

We’ve reached a somewhat sad milestone in entertainment history. As of the end of 2023, cable subscribers will be outnumbered by those who no longer pay for any traditional TV service offering. While the decline in cable subscribers is hardly news at this point, we’ve seen an acceleration in its decline throughout 2023. Entertainment lawyer Brandon Blake, of Blake & Wang P.A, shares his insight on the matter.

Brandon Blake

Breaking Down the Figures

The number of people with no traditional TV service- be it because they’ve exited that model, or those who never joined to start with- has now reached just over 144M, a 12.5% increase over 2022 numbers. Traditional pay-TV members have dropped by 10.2%, to 121.1M- and that includes those receiving their package through telecom providers, cable, or satellite. We’ve seen this decline since 2014, also widely seen as the year streaming first had a noticeable market presence.

Why? In the end, however mercenary it seems, people no longer want to spend upwards of $100 a month on one fixed bundle, even live TV. They want the wealth of choice, lower cost-of-entry, and easier exit of the current streaming subscription model.

Disney vs Charter: A Symptom

We pretty much saw this shift play out in real-time with this year’s thorny Disney vs Charter TV deal. Comcast no longer wanted to pay for cable channels that its subscribers aren’t engaging with; now most of Disney’s premium (and attractive) offerings are funnelled to Disney+ instead- another issue accelerating cable’s decline in people’s perceptions.

It’s expected that we will see a similar scenario play out a lot in the coming years. The economics of streaming are, of course, hardly a simple and easy money-maker now the pandemic-generated boom has lost its shine. So there’s still a lot of evolution in the entertainment space to come. But if current trends stay consistent, one thing is for sure- the future is not with cable.

While we’ve finally seen a substantial number of films manage to secure a Chinese release date this year, that doesn’t mean everything is back to the old normal. While a Chinese Box Office release was once something of a cheat code for international success, the market’s tastes have shifted a lot in the wake of the pandemic. Brandon Blake, our entertainment lawyer from Blake & Wang P.A., looks closer.

Brandon Blake

Cool Start for Key Films

One thing is for sure- China will not be the salvation of Disney’s ill-fated The Marvels. The movie has slipped to sixth place in only its second week after release, and even the best projections for the movie are a mere $15M- an all-time low for the MCU in this market.

Nor is it the only Hollywood franchise release struggling to win back Chinese audiences. The Hunger Games: The Ballad of Songbirds & Snakes opened at third place this last weekend, beneath two local (and holdover) films- and earned just $4.6M. Nor is this likely to improve by much, with the film earning low rating scores from local audiences. It’s currently projected to close at only $7M earned there.

Changed Tastes

With both the MCU and the Hunger Games franchises having had pre-pandemic Chinese releases, it’s hard not to draw comparisons. Earlier Hunger Games installments took between $21M and $36.5M in the market. While superhero-style pictures have been the most notorious underperformers in recent years, we’re seeing a general shift away from Hollywood franchise releases overall.

Some of this can, of course, be laid at the door of the shift in Chinese sentiment to more nationalist fare in the COVID era. However, some of it comes from a market that’s now far richer in attention-grabbing local movies, often with more complex plots and greater local relevance.

All in all, it is unlikely we will see this market return to its previous prominence in the international release schedules, though the fact any movie at all is at least getting some release prominence there is still to be celebrated.

There’s one thing you can say for the entertainment industry- it’s never static. This week we saw the news that CAA will be adding another arm to its entertainment-focused empire with CAA Evolution, an advisory firm and investment bank looking to work in the media, entertainment, and sport space. Blake & Wang P.A.’s Brandon Blake, our local entertainment lawyers in USA, unpacks this new development.


Brandon Blake

More M&A Action

The new entity sees the combination of the CAA’s existing merchant bank, Evolution Media Capital, with their recently-acquired boutique strategic advisory firm, M. Klein & Company. With almost 60 employees, it will be based out of London, LA, and New York.

This new creation will greatly expand the CAA’s existing footprint in both capital raises and media rights deals. They will be focusing on fund/capital formation services and IPOs while offering access to institutional capital sources. Additionally, with M. Klein & Company in their stable, they will be offering advisory services for talent sourcing, PR/IR management, and board dispute resolution. Add the nebulous ‘evaluating unsolicited offers’ to that, too.

Expansion and Focus

The latter is most definitely an expansion on the 35-year strong footprint M. Klein & Company has already been offering. They will additionally continue to operate as a stand-alone business across other (non-entertainment) industrial sectors. We’ve already seen Evolution Media Capital active in the sports media space, too, primarily focusing on the development of streaming and digital strategies for this expanding entertainment space.

The core CAA business has also seen some transformation this year, with a majority stake selling at a cool $7B to luxury goods billionaire Francois-Henri Pinault. With plenty of experience from both sides, and an expanded stable to focus on, there’s plenty to look forward to from CAA Evolution, and we expect to see them rise as a major player (or rather, more major) over the next few years. 

Is the era of the Chinese release date back again? With both Wonka and Migration set to release on the same day and a raft of other release dates confirmed for what was once one of Hollywood’s most critical overseas markets, it seems so. Blake & Wang P.A. entertainment Lawyers in USA, Brandon Blake, has the news.

Brandon Blake

Early Release

Both Wonka and Migration have been granted a release date of December 8 for the Chinese market. This would be a week ahead of the domestic release of Wonka, which is seeing a generally advanced overseas rollout.

Disney, which has had difficulties with Chinese releases in recent years, has scored a Chinese opening for The Marvels, which may go a way to offset its generally soft domestic release. The Hunger Games: The Ballad of Songbirds and Snakes, from Lionsgate, will premiere on November 17 for the Chinese market, followed the next week by Disney’s Wish. Interestingly, DC and Warner Bros Discovery have secured approval for Aquaman and the Lost Kingdom, but still have not received a confirmed date.

Actors Back To Promotion

With the SAG-AFTRA strike finally resolved, we will no doubt see a return of lead actors for these films to the red carpet promotion circuit. Wonka is currently predicted for a $20M opening, but that was without this consideration. In addition to China, the film will roll out to 36 other overseas markets starting from Dec 6th. It will be released for the domestic market on Dec 15. Migration is similarly released for Illumination overseas before its domestic date, with further staggered releases through December-February and Japan in March 2024.

The Chinese market, amid shifting post-pandemic tastes, has been softer than it once was for Hollywood releases. However, this is one of the largest spates of Hollywood releases we’ve seen for the market in recent years, even offset as it is by an equally bulky local slate for the year-end season. Whether this trend will continue or not is the real question.

In the year since Netflix launched its ad-supported tier, the ranks of monthly active users has swelled to 15 million. This is a fantastic improvement on May’s 5 million. With their global rollout still in progress, what does this mean for Netflix and the wider entertainment industry? Our expert entertainment lawyer in USA, Brandon Blake (from Blake & Wang P.A.) dives deeper into the news.

Brandon Blake

Most Growth in the Third Quarter

According to Netflix themselves, Q3 saw a massive 70% uptick in growth for their ad-supported tier (‘Basic with Ads’). However, we still lack clarity on how many of Netflix’s 247 million global subscribers are using the tier, which is now the cheapest they have on offer.

The move to advertising-supported tiers has been something of a trend this year. For Netflix itself, it also was something of a corporate reversal- there was a time when they promised there would ‘never’ be ads on the service. However, their partnership with Microsoft (for the data side of selling ad inventory) came after a series of poor quarterly performances and a massive hit to its market value.

A Booming Trend

Hot on their heels, we saw Disney+ buy into the ad-supported model, and many others have followed since. The streaming industry has been on the lookout for the ‘magic’ economic model to help make the streaming industry as lucrative as its initial COVID-fueled boom promised. It seems to have decided advertising money is the way of the future- ironically returning us to a streaming experience more closely modeled on older broadcast models.

Netflix paired the launch of the ad-supported model with a rollback on open password sharing, a dual-pronged approach that seems to have driven much of the shift to its cheaper tier for users. Subscriber growth, increased cash flow, and a return to profitability have followed.

While offering ad-supported tiers is unlikely to be the end of streaming’s need to adapt to current economic trends and viewer tastes, it’s certainly proven to be a lucrative model, and one that will shape the future of streaming for decades to come.