Endeavor, the owner of not just WME but also IMG, and a majority stakeholder for the TKO Group (the new home of the UFC), is reportedly considering leaving the public trading space. Entertainment attorney Brandon Blake, from Blake & Wang P.A, shares the news.

Brandon Blake

Strategic Review Underway

Reportedly, this formal review is under consideration due to an inherent discrepancy between the intrinsic value of its assets and their public market value. Endeavor’s major stakeholder (at 71%) is the private equity company Silver Lake, and they are reportedly the key drivers behind the proposed move.

They likely have a point on the market undervaluation. CAA’s majority stake recently sold at a $7B evaluation, for example, or 15 times their revenue on the agency business side. IMG Academy and Endeavor Content also fetched very enticing market prices. Yet Endeavor itself is currently tracking around 1.5 times its revenue value. While it is unlikely any publicly listed company would receive the private equity value CAA did, that’s still a puzzlingly large discrepancy.

A Whole or Pieces?

It also seems that Endeavor may be interested in selling off pieces of the business rather than a whole, in a bid to maximize shareholder value. We could have already seen the start of this with the merger of the UFC and WWE into the TKO Group, although that’s not currently up for sale. In fact, the same argument about public market value and intrinsic value reared its head at the time there, too.

If the move to return to private equity vs the market does go ahead, it will create a very intriguing rollback of the M&A flurry we saw in 2021 and 2022 from a key player on the entertainment scene. Could we potentially see more, similar moves? In the ever-shifting entertainment space, nothing is ever fixed, after all.

From the strikes and general economic environment to Netflix’s subscriber slide in Q1, it’s been an interesting- and formative- year for the entertainment industry. Despite the difficulties, however, we’ve also seen an interesting year in which the domestic and global entertainment scenes have become more unified, and there’s plenty of positivity to find. Blake & Wang P.A. entertainment lawyer in the USA, Brandon Blake, explores some of these ripples.

Brandon Blake

Change and Consolidation

It has been a tough year to navigate, but that was inevitable given the massive shifts in the entertainment industry and the rise of the streaming boom. Once-in-a-generation shifts are rarely subtle, after all. But among the many strategic shifts that we’ve seen this year, a greater impact on producing locally for global eyes is sure to be a net positive. The digital age has broken through borders in how we work and play- and entertainment evolving to support that can only be a good thing.

Harder to adjust to has been Wall Street pressures and lost confidence in streaming. While this has axed the ‘blank check’ mindset that did bring to life some immensely worthy projects and has somewhat discouraged risk-taking, it could also lead to wiser investment in worthier projects instead of just throwing money at projects and hoping it sticks.

The Rise of Hero Titles

So-called ‘hero titles’, or big bets on massive high-end productions like Amazon’s Lord of the Rings, have been an interesting streaming-age phenomenon, too. Big risk? Yes, but big reward too if it pays off. This has helped to elevate the streaming original genre considerably and take it away from its previous low-budget perception.

This would also be the first time we’ve seen US-centric strikes take on a global impact, leading to some complicated dances around licensing and distribution as well as international crew shutdowns. But it has also fostered a returned interest in making local-for-local instead of always hoping to sell on to US markets. Additionally, we’ve seen a positive rise in co-productions that will benefit the industry overall.

While what some have called the ‘bursting bubble’ in the entertainment industry may be painful to weather in the short term, there are also the roots of some positive developments for the industry as a whole. We may leave the difficult 2023 year with the groundwork for a stronger, better entertainment industry after all.                                          

We rarely get comprehensive data from Netflix about its subscriber numbers and revenue, so it’s always worth paying attention when they do crack the data vault. With the UK currently serving as their most important production hub after the US itself, seeing strong figures here is always of interest. Our entertainment lawyer Los Angeles on the ground, Brandon Blake of Blake & Wang P.A. breaks it all down for us.

Brandon Blake

Revenue and Subscriber Growth

Netflix UK posted £1.54 billion ($1.9 billion) in sales for the 12 months ending December 2022, marking a 12% growth from the previous year’s revenue of £1.4 billion. Pre-tax profits also saw a 22% increase, reaching £34.1 million for the year.

Although the exact number of UK subscribers remains undisclosed, data from the audience research body BARB indicates that 17.2 million British households had access to Netflix by the end of 2022, representing a 3% year-on-year increase. The earnings report from Netflix Services UK also highlighted a 4% growth in the average number of paid memberships and a 14% rise in the average revenue generated per subscriber.

Knock-On Effects

Of course, with greater transparency, mostly foisted onto Netflix by changed local regulations, comes greater governmental interest. Netflix has faced a great deal of criticism for low tax payments in the UK space for a while now. On the heels of this revenue reporting, we see a boost to £6.4 million in income tax paid for the year, compared to £5.3 million in 2021. Netflix itself attributes the majority of this increase to its increased commitment to making series and films in the UK. Interestingly, they have also taken on almost a third more employees in the UK despite the rocky economic climate, bringing the total to 202. They were quite keen to brag about this increased job creation in the same report, too.

Overall, it seems this arm of the global streaming giant is managing to turn in a stellar performance in an economic climate that has been more bust than boom. It will be interesting to see if we get similar figures for their US operations as Q3 closes.

As we gracefully slide into October, it’s no surprise that horror films are the name of the game at the box office. After a stunning performance from The Nun II, all eyes are now turned to another popular horror franchise entry with The Exorcist: Believer. Will it deliver? Blake & Wang P.A. ‘s Entertainment Lawyer Los Angeles Brandon Blake, our industry-insider entertainment lawyer, takes a look at its potential.



                                Brandon Blake

$30-36M Start

This R-rated fusion of reboot and sequel is currently trending very closely to The Nun II, which opened at $32.6M domestically with most of its audience coming from the 18-34 demographic. Surprisingly, it also performed well among older men, Latino, and Hispanic viewers. It will be rolling out on 3,600 screens, including both IMAX and PLF. 

With production costs (before P&A) of $30M, a strong opening could be all the magic it needs to boost itself directly into profitability, too. Even if it misses the mark, provided it gets into the $20M range, it will still be one of the strongest openings for the franchise. The Exorcist III currently holds the top title, at a $9.3M opening and $26M total.

Strange Opposition

Unlike many other genres at the moment, horror is not particularly bothered by the lack of talent promotion as the SAG-AFTRA strike continues. Saw X, which is now in its second week, has managed a solid $18.3M start. Small in the wider scheme of things, but enough to save it from the dismal low of the previous installment ($8.75M). 

In contrast to the first two entrants in this year’s horror season, however, The Exorcist: Believer has an interesting hurdle to overcome- the deluge of ‘Swifties’ due to hit theaters for the theatrical release of Taylor Swift: The Eras Tour from mid-October. Its release was actually pulled forward a week to try and combat this. Will it be enough to keep box office numbers high? Let’s see if The Exorcist: Believer has enough belief in itself to rise to expectations.

It’s been an interesting week across the board for shares in entertainment. With Big Media taking a hit, streamers seeing some upward progress, and a climate of optimism keeping theatrical stocks buoyant, it’s a difficult-to-read climate. Luckily we have Brandon Blake, entertainment attorney from Blake & Wang P.A., to help make sense of the shifts.

                                                               Brandon Blake

Big Media Dull

Wall Street has been mixed regarding larger media groups as the dual-strike actions sent many productions into hibernation. While this has generated plenty of free cash and a temporary lowering in costs for these companies, no one can ignore the overall negative impact of reduced production, either. With the welcome news that the WGA, at least, will be returning to work this week, we would have expected to see a rise in stocks. However, the market remains jittery about other economic aspects, including a weaker advertising market and new checks and balances in the industry. Additionally, worries remain over the degree of disruption the strikes will have on this year’s balance sheets, even if SAG-AFTRA manages to hammer out a deal this week and scripted productions resume this month.

Boost to Theater Chains

Interestingly, however, the climate around the exhibition industry is still reasonably buoyant. AMC Entertainment saw a significant 9% rise in stock price last week, likely fortified by its announced launch of an ad-supported tier for its flagship streamer, AMC+. Cinemark and Marcus saw more modest gains (3.5% and 2.8% respectively), but a gain is a gain at this point. Additionally, Netflix saw a modest 1% gain in the markets, slightly protected from the concerns around profitability other key streamers face as they have long been operating fully in the black.

It’s certainly intriguing to see the market’s different reactions across the entertainment industry this week, even if it is unclear exactly why the potential knock-on effects on the production pipeline have not yet reared their head for exhibitors.

With the increasing streaming focus on ad-supported content, the softer US ad environment has been a source of concern for many. Luckily, we’re looking at a recovery leading into the 2024 environment. While the impact of the strikes and other economic issues cannot be removed from the table entirely, it is good news overall- and our entertainment attorney Los Angeles Brandon Blake, from Blake & Wang P.A, is here to share it.

                                                              Brandon Blake

Boosted Forecasts

According to data from Magna, a media investment company, the US advertising market for the end of 2023 and 2024 should see significant improvement. This is off the back of better-than-expected data from the current year, as well as a strengthening economic outlook. Overall, total advertising spending for 2023 has improved significantly, with sales up 4.4% after 2 years of stagnation.

Sadly, this mostly favors digital media vendors (read: streamers), with traditional media companies still seeing a significant downturn (negative 4.1%). Still, good news is good news.

Revised Estimates

According to Magna’s data, total ad spend for the third quarter of this year should see about 7% growth. Significantly better than the 2.9% of quarter one. Full-year estimates of 5.2%, a full percent higher than originally projected, are in place. What does that mean in dollars? Roughly $337B in spending. While shrinkage in the non-cyclical market is still on the table, the rise of AVOD advertising should offset this significantly.

For 2024, they are projecting a 5.6% rise, over the initial 5% benchmark. If we include cyclical political spending, that could rise as high as 8%. This does hinge on the continued production of attractive content and the resolution of the strikes.

While all is not well, exactly, in the advertising market, this is certainly a better position than the recession-like climate many advertisers were bracing for at the start of the year. It’s sure to be a relief for many key players in the entertainment industry, too.

It’s set to be the season of unscripted properties, at least if Fox’s Fall schedule is anything to go by. From the reemergence of Kitchen Nightmares to new seasons of the game show Snake Oil, it’s clear that they’re hoping to offset the tumultuous impacts of the dual strikes through a cautious unscripted lineup. One of the best Entertainment lawyer Brandon Blake, with Blake & Wang P.A., shares all the details.

Brandon Blake

A Reality Boom With A Focus On Quality

According to Fox’s recently appointed President of Unscripted Programming, Allison Wallach, this shouldn’t be taken as a reality boom ‘for the sake of it’. Instead, she was quick to reiterate that content production standards would remain high.

So far, a strong start to the tenth season of The Masked Singer backs that up. The show managed its highest-rated premiere since Season 7, with a 50% gain in younger demographics to boot.

Fox Properties Prioritized

In addition to the unscripted-heavy lineup, we’re seeing a priority placed on IPs from the self-owned Fox Alternative Entertainment studio, including the re-launch of Kitchen Nightmares from Fox-funded Studio Ramsay. Hell’s Kitchen will also be entering its 22nd season.

The new offerings are a mix of these old favorites with newer franchises, including The Floor. Clearly keeping their mid-season lineup well-stocked is a priority at the moment. All the same, there’s still several unscripted shows on which we’ve had no clarity other than a vague reassurance that they will return, sometime.

It seems like a clear case of hedging their bets while there’s no clear resolution to the actors’ strike. Surprisingly, however, greenlights for non-scripted properties have not been as high as was predicted at the announcement of the strike. In fact, most of these renewals or greenlights stem from production/development cycles far older. Will we see an uptick in newer properties later in the year? For now we can only wait and see.

It’s been a summer of impressive box office performances. As the pink-hued and slightly explosive wave of ‘Barbenheimer’ restored hopes for a summer box office turnaround, we continue to see both films soar to new records. Barbie has now officially become the highest-grossing film of the year globally, surpassing The Super Mario Bros Movie for a total box office taking of $1.365B. Additionally, Oppenheimer has now become Christopher Nolan’s third-highest grossing film worldwide, with only The Dark Knight Rises and The Dark Knight ahead of it. One of the best Entertainment attorney Los Angeles Brandon Blake, of Blake & Wang P.A., unpacks the latest achievements.

Brandon Blake

Two of the Top Three?

While Barbie has been the (understandable) focus of much recent press, let’s not forget that Oppenheimer is also proving to be an overachiever of note. With a box office now passing $850M worldwide, it is now set to become 2023’s third-highest-grossing film. Behind, of course, Barbie and The Super Mario Bros Movie. Great news for the overall box office, of course- but we’re willing to bet Universal is feeling a little smug right now, too.

Successful Chinese Release

Oppenheimer has an offshore total to-date of $542M to pad its bottom line. Additionally, it’s had something many films have lacked since the pandemic- a surprisingly successful Chinese opening. Here, it quickly claimed the top spot at the box office, and has received consistently high audience ratings. Once a given for Western releases, but a small miracle in the current climate. It’s thought the Chinese box office alone could account for $64M.

In a year where surprising break-out hits from non-franchise IPs have been the winners through and through, both Barbie and Oppenheimer continue to captivate audiences despite now entering a period where we typically see takings fall off steeply. A redefinition of success in the film industry indeed. The 2023 box office has had a standout summer, and mostly from properties no one ever anticipated achieving such global success. Here’s hoping 2023 ends on the same strong note!

National Cinema Day. A needed institution, or a gimmicky idea that only had value directly after pandemic lockdowns? Like it or loathe it, the $4 ticket day was back for another year, and can claim a modest box office boost for it. Our resident one of the best entertainment attorney, Brandon Blake of Blake & Wang P.A, breaks down this year’s impact.

Brandon Blake

Audiences in Seats

National Cinema Day was launched last year in the hopes of encouraging a wider breadth of audiences back into theater seats. At the time, it was a decent boost to an industry struggling with attendance numbers, COVID worries, and a lack of product to showcase.

The scenario is looking a lot different in 2023. We had a stellar array of tentpoles to choose from, with Barbie still partying hard, Gran Turismo making a splashy entrance into the field, and more to choose from. Some critics on the distribution side were skeptical of the need for a second round of reduced-price cinema tickets at all with the strong recovery in audience numbers we’ve seen this year.

Positive Exhibition Feelings

On the exhibition side of the industry, however, the feelings were mostly positive. While some smaller cinemas could have done with more advance notice, most of the industry still points to National Cinema Day as a showcase of how much audiences love the theatrical experiences and the strength of the industry’s future.

This year, over 3,000 locations (and ten times as many screens) participated. In total, 8.5 million reduced-price admissions and a Sunday box office of $34 million was achieved, over 5% growth on last year’s 8.1 million admissions and $24 million (Saturday) box office. This boils down to about 59% of foot traffic coming from the initiative. Less than last year’s 77%, but that’s the whole point of the exercise.

Overall, with Sunday’s box office  tracking at 11% higher than Saturdays, it seems National Cinema Day still has a role to play in celebrating this critical arm of the entertainment industry. Let’s hope the 2023 box office continues to power forward with the same momentum as we enter the latter half of the year.

When the pandemic forced the closure of a number of iconic LA theaters, few predicted they would ever reopen their doors. Let alone a handful of years after the pandemic itself. With several celebrated venues now actively open or reopening soon, it’s a completely different climate to what we were predicting a scant few years ago. Blake & Wang P.A entertainment attorney Los Angeles, Brandon Blake, has more.

Brandon Blake

An Optimistic Vibe

In just the last few months, we’ve seen the Landmark Sunset, Culver Theater, and Cinépolis Inglewood Imax return to service. The Egyptian and Vista are set to follow, and there’s even murmurings that the ArcLight Hollywood could join them soon. Most of these locations have been reworked and renovated in the process, and some are trialing new ways to attract customers.

It’s fantastic to see the arthouse and independent theater scene rebound so optimistically, especially bare years after doom-and-gloom was the only outlook. In many cases, these locations are being revamped and reinvented into community-focused spaces offering additional sweeteners to their movie roster. From curated menus to lounges and sports bars, there seems to be less reticence to try new ways of appealing to the modern audience- and compete with easy at-home video offerings.

A New Direction

Of course, these are far from the only independent locations which COVID forced to close. And some of those locations are destined to never return to service. Winnetka Pacific Theatres, for example, is earmarked for demolition and the land has been sold on to Tesla for a service center. The Fox Village Theater still has a major question mark hanging over its future. But the fact we’ve seen any upward growth in a market some confidently proclaimed dead and irrelevant is achievement enough in itself. And a key sign that, contrary to those dull predictions, the indie and arthouse industry is coming back swinging. At this point, we can confidently say that the idea that people don’t want to go to the movies and the couch will win is dead in the water. Let’s hope to see this renaissance continue in force.