Not only has Disney managed to beat Wall Street analyst’s expectations for their new subscriber numbers, they’ve also managed to pass Netflix’s subscriber base for the first time. Blake & Wang P.A entertainment attorney, Brandon Blake, looks at this milestone in more detail.

Topping Netflix

We see them add 14.4M subscribers during this quarter, considerably higher than the estimated 10M, and bringing Disney+ itself to 152.1M. Across the Disney stable of streamers, which includes ESPN+ and Hulu as well, Disney now own 221.1M subscriptions, passing Netflix’s 220.7M subscriptions. Despite this milestone, we haven’t actually heard how many of these were bundled subscribers, which could mean they have been counted more than once.

Modest Domestic Growth

Despite the slow-down in domestic subscriber numbers, they did manage some modest growth in the North American market, rising about 100,000 subscribers. Disney+ added just under 1M subscribers internationally in the same period, too. Hulu managed about the same, while ESPN+ added half a million new subscriptions.

This comes despite them unveiling a coming price hike for all three streaming platforms. It seems that the Disney Company are looking to increase their revenue per user more directly, especially as it is already fairly low for their two anchor subscription platforms. They’ve also promised an ad-supported tier for Disney+ at some point in the 2023 cycle.

While the victory over Netflix is, as we mentioned, a little dubious given bundled subscribers, this again highlights the industry-wide reevaluation of how to present streaming services in a world which has seen even the Netflix brand name lose traction.

Overall, Disney is one of the few to beat expectations for Q2, and they display an overall strong balance sheet that continues to grow in raw dollar numbers as well as subscribers- a victory indeed for this particular quarter.

There’s no secret in the fact that the streaming market has floundered a little this year. Still, it was rather surprising to see Paramount forecast a rather harsh set of streaming losses for this year. Entertainment attorney Brandon Blake, of Blake & Wang P.A, dives deeper into the statement.

Sluggish Q2 Reports

With around 64M global streaming subscribers to its service, Paramount have reiterated their goal of spending $6B on content creation for the 2024 period. While only a small improvement on the 62M subs last quarter, it’s still progress. 2022 streaming losses are now estimated to fall into the $1.8B range, slightly higher than the original $1.5B predicted. It has also indicated that it expects these losses to peak in 2023, not this year. However, they continue to remain optimistic about their streaming efforts overall, pointing to rising streaming revenue and steady, if slow, subscriber growth. Their overall earnings for Q2 actually managed to exceed expectations, but the EBITDA is still more modest than expected. Cash flow for 2023 is expected to hit close to breakeven.

Wall Street Lacks Consensus

Wall Street seems a little torn on Paramount overall currently. While some have become more cautious, worried about its reliance on advertising revenue, others have chosen to take a more contrarian outlook.

It certainly seems likely that Q3 advertising spend will be flat, if not actively trending down, in the current economic environment. Hopes are still pinned on Q4 this year, when political advertising and other seasonal events are likely to drive it higher. Free cash flow remains a worry for investors. 

Overall, Paramount managed to deliver a more positive Q2 earnings call then many others, despite the valid points of worry around the larger economic outlook for the remainder of the year. Investors certainly reacted more favorably than they have to many others, with Paramount managing a small rise in stock price- one of the few entertainment entities to do so this quarter.

Bucking the trend, Comcast has managed to beat its estimated performance for the second quarter. Despite this buoyant news, Peacock subscriber levels remain a little lackluster. Blake & Wang P.A entertainment attorney, Brandon Blake, analyzes the results.

Beating Wall Street Targets

Earnings per share for Comcast now sit at $1.01, with a total revenue of $30B in the kitty. While this is only a small increase from the projected $29.75 billion and 92 cents, it’s one of the few companies to over-deliver in this quarter. 

Drilling down into their entertainment companies, NBCUniveral has a revenue rise of 19%, taking them to $9.4B, with an adjusted EBIDTA of 20% at $1.86B. 

Peacock Lags

However, their streaming service, Peacock, has stalled in subscriber growth, remaining at 13M. However, the streamer still managed to boost an 8% year-on-year distribution revenue amount. Despite this, their losses gap has widened a little over $100M, finishing at $467M. Revenue accounted for $444M.

Despite the lackluster subscriber growth, Peacock is still well on-target to reach its 30-35M subscribers by 2025 target, with total numbers estimated to be around 27M active accounts currently. Given that some key live Q1 events (notably the Super Bowl and Winter Olympics) were not in this quarter, some stagnation is to be expected.

NBCU’s studio revenue, however, jumped 33%, landing at $3B, comprising both stronger theatrical revenue and some solid content licensing deals. Theatrical revenue climbed from $352M to $550M, while content licensing climbed 19% and distribution revenue 8%. While it was a very small rise, Comcast’s cable unit also managed to inch up 4%, keeping it the title of No 1 US cable operator. 

Despite this overall positive result slate, Comcast took some hits on the stock market, sliding down a very moderate 6% as part of the overall decline in media sector stocks.

Despite the unstable economic and political marketplaces, with inflation, the ongoing Russian invasion of Ukraine, and a bear market all providing pressure, global ad agencies remain fairly buoyant about the potential for continued growth in ad spending post-pandemic. Entertainment attorney Brandon Blake, of Blake & Wang P.A, digs into whether this is simple optimism, or a given. 

Cyclical Event Growth

Much of this continued optimism despite worries around supply chain issues and a possible economic recession is based on the assumption that it will be offset by key cyclical events scheduled for the remainder of 2022. One of the most important of these, of course, is the upcoming US midterm elections. These are expected to generate in the $9M area in political advertising spend. There’s also the rescheduled fourth-quarter FIFA World Cup, again expected to bring in event-related advertising income. 

Sluggish, but Relevant

However, it’s common sense that relying on cyclical events is not a real indicator of genuine growth. And with increasing pressure from inflation and other market woes, can we truly say that the advertising market is immune to knock-on effects?

Not really, which is likely why we’ve seen several key economists predict that the knock-on effects will dampen the advertising market, and the bottom lines of advertising agencies globally, more than the buoyant predictions suggest. 

However, it is important to keep focus on the fact that not all advertising efforts are being hit by current market indicators. While some key demographics, including tech and car advertising, are likely to take a hit, digital sectors are expected to rise to 57% of overall ad dollars through 2022. Online video remains a compelling corner of the market, and entertainment has historically weathered economic downturns with decent success.

In short, it’s likely too early to tell, but with some grumbling from the market inevitably filtering through, optimistic advertising spend predictions are likely to see some readjustment through the year.

The current world climate has changed the way families live. An increase in economic independence and an awareness of individual financial rights have transformed the way expenses are viewed between spouses. Today’s costs between husband and wife are divided and shared equally.

The same goes with properties which are owned. In the UK, the government has passed laws to secure the position of both spouses. Under these laws, all incomes are earned through rentals, property, or other shared investments. Each income that you receive is shared and equally divided amongst the spouses.

Splitting rental income is possible according to the new laws. Many people in the UK have started to use it. The current tax regime allows you to divide your income without worrying about the split.

Why should you divide rental income?

Times are changing. Investments, whether between spouses or not, are considered individual investments. If you are wondering whether you should divide your rental income, then you should. Based on the rights given by the state, you must exercise this freedom.

By dividing rental income, both spouses can establish equality. It shows that both spouses are equally responsible for the property. A divided rental income helps both to do things individually. It also divides the property tax that the owners have to pay. By dividing rental income, you are beneficially entitled to the shares of the property equal. Even if the husband has contributed 90% to the property purchase, the wife still gets her share.

Is it possible to adjust splitting rental income between husband and wife?

The current law makes it possible for the two spouses to split the rental income which they receive. Despite how much the two contribute, the husband and the wife can have an equal share of what they own.

So, how does that work?

When a spouse purchases a property, they must submit a beneficiary or joint declaration. In the joint declaration form, both the spouses declare their names and marital status. When the property is put on the tenant, there is a split of 50/50. It means that whatever rent money the couple receives, they must obtain a 50% of each payment. The division remains 50/50 even if a declaration of deed is submitted. A necessary preliminary step is to change the ownership of the property from a ‘joint tenancy’ into ownership as ‘tenants in common. The rules summarized above do not apply to properties which fall within the definition of furnished holiday lettings and properties held by a partnership where the spouses are partners. In both these cases, trading profits may be allocated in any way the partners choose. However, HMRC considers that it is unusual for a couple to be in partnership as the existence of a partnership depends on a degree of organization similar to that required in an ordinary commercial business.

Can you still have the property income regardless of ownership?

Due to the feminist movements and rights granted to women, they can have access to rent even though they might not own the property. According to the new law, the two spouses are considered essential in decisions regarding the property.

Many couples would do this for tax efficiency reasons – for example, if rental income pushed you into a higher tax band. If that is the case, you could deem some of the payment over to your spouse or civil partner, who may earn less, meaning that your income doesn’t cross over into the more expensive tax band.

Frequently couples want to make arrangements for themselves. Sometimes, one partner feels on board with the idea of a split rental income. If your spouse is not on board, the new still gives you the right. In that case, you will need to both sign a “declaration of trust.” According to the declaration of trust form, although you might not own the property, you do have any net equity in the property. It gives you a choice whether you want to provide access to funds to your spouse or not. In most cases, once the declaration of joint ownership is submitted, you immediately qualify for the income you receive from the property owned. However, you may need a lawyer if that is not the case.

The status of your property can also be changed. If you want both you and your spouse to have equal access to the rental income, then you must change the status of your property ownership. The ‘declaration of trust’ form enables the right to have property owned by both the partners. Even though the other might not have a right to sell it, they benefit from whatever they receive.

If you try to transfer the entire property over to your spouse or civil partner and not the net equity, this may mean that stamp duty land tax becomes payable. There is also a high risk that you will be in breach of the terms and conditions of your mortgage.
What happens to inheritance tax?
In a civil partnership, the tax is applied to both. As long as you are still a married couple, the transfer of net equity or the inheritance tax is exempted. If you transfer the property, it is often treated as a no gain, no loss situation.

Closing Thoughts

If you and your spouse are purchasing a property, they should consider splitting it. The declaration forms enable both spouses to access the rent, regardless of whether it is joint ownership. When that happens, both spouses have the right over the property. So in the near future if the marriage does not work out and things fall apart, the two can equally divide whatever share they own. Even if one spouse is absent, the other can still benefit from the income. If you are thinking of splitting the income you receive from your rented property, then you should definitely do so. The new allows both spouses to have an equal right over the income and the property.
For assisrance in Splitting Rental income between Husband and Wife, you could take advice from accountants High Wycombe in UK.

It’s been a record year for the UK’s public broadcaster, with full-year financials revealing their highest-ever earnings and revenue growth across the board. Blake & Wang P.A’s Brandon Blake, noted entertainment attorney and industry expert, has the details.

Overall Revenue Reaches $1.93B

Most of the 30% jump in overall revenue for the studio has been attributed to a strong year for both production and amazing gains for UKTV, their TV channels group. In particular, their $473M revenue from content sales, a record-breaking 56% increase for the studio, catches the eye. Charmingly, alongside their anchor brands like Doctor Who and strong unscripted content, this was also attributed to solid production from their indie partners introducing interesting and audience-attracting new fodder to their content stable. 

Strong Demand

We also see a 50% jump in overall earnings for the entity before tax, interest, depreciation and amortization, hitting $267M. It’s also the first time they’ve crossed the £200M benchmark, another key record for the service. Much of this hinges on continued strong demand for popular unscripted shows like the Strictly/Dancing With the Stars franchise and the Planet series.

Rounding out the string of successes, UKTV saw its same earnings jump 105%. Here we see the recovery in the overall advertising market pull in strong figures as well as fantastic audience traction across the board. Interestingly, their comedy channel, Dave, has managed to pull in a further 14% of viewership in the now-critical youth market, representing watchers between 16-34 years old. UKTV play added 1M new registered users in the time period, too.

As a lesson in what investment in strong new content alongside cultivating existing IP and advertising partnerships can do, it’s one worth looking at closely. Perhaps Netflix can learn a lesson or two from the pairing of strong advertising presence and stronger content development.

The 2020s have not been easy for the broader exhibition landscape. With talk of an economic downturn, and even recession climate, now hogging the headlines, what does this mean for an industry only just starting to shake off pandemic effects? Brandon Blake, entertainment attorney at Blake & Wang P.A, looks deeper into the facts.

The Box Office Recovery

As the first half of 2022 recedes in the rearview mirror, it’s clear that talk of a larger-scale theatrical recovery is not wishful thinking. However, while the film and TV industry is somewhat insulated from wider economic woes, the recent depression in the economic state of the US and globally will inevitably have knock-on effects. 

While quarter 2 earnings have yet to be finalized and released, we’ve seen recent downgrades to both 2022 and 2023 domestic Box Office revenue projections. This time, not from within the industry, but as part of the wider economic issues. Still, there’s no need to be gloomy just yet- these are simply aiming to project a more realistic face to the recovery in a tougher climate, rather than a sign of any lack of potential or effort. 

Theaters Still Reasonably Strong 

Likewise, despite this downgrade, theater stocks for those chains listed on the stock exchange have managed to maintain the status quo, with either ‘buy’ or ‘neutral’ ratings. The demand for high-profile films is still there, and the fact that the theatrical demographics appear to have widened greatly in the last few months is encouraging, too. 

Currently, it’s expected that 2022’s takings will come in 28% lower than 2019s. While it is a small drop from the 20% originally predicted for the year, it’s still impressive enough from an industry many were predicting was ‘doomed’ just a year ago. 2023’s projections are even more buoyant- it’s been revised from a 3% below 2019 to a 7% below 2019, both of which are more than encouraging. 

Overall, Wall Street remains bullish on most theatrical properties, and audiences seem to be returning to the theater no matter what the overall economic climate has to say. While it’s another challenge to overcome, this one doesn’t seem as insurmountable as COVID once did.

It’s been a great year for records- and we’re finally seeing one for the streaming arena, too. Netflix has always had a great hit on its hands with Stranger Things, and the first episodes of Season 4 have managed to set a brand new record for U.S streaming. Blake & Wang P.A entertainment lawyer, Brandon Blake, fills us in.

7.2 Billion Streaming Minutes

In just one week- May 30th through June 5th- the 32 episodes of Stranger Things season 4 has managed to rack up 7.2B minutes of streaming. This breaks Netflix’s Tiger King’s record from May 2020 for the most U.S streaming minutes in a single week. It’s worth noting that this is without the penultimate and final episodes, too.

The announcement that the series will end in Season 5 probably had a hand in driving demand, but that’s still impressive. 

Obi-Wan Draws Crowds

The Star Wars IP spin-off, Obi-Wan Kenobi, is also carving itself as a breakthrough original, despite skewing to a male audience. It has managed to pick a lot of traction up through the age tiers, however, playing almost evenly from 18-64 years of age. It managed to hit almost 1B viewing minutes, despite only three episodes being available in that same period.

It’s also worth remembering that Nielsen still only tracks minutes watched on a TV screen for streaming, so the overall picture is likely even rosier for both IPs.

While there hasn’t been the same concern for the strong streaming industry that we’ve seen for the theatrical box office, seeing this level of engagement and traction from two solid series is always a welcome sight. Hopefully there will be plenty more to come as we move forward into an invigorated film and TV landscape.

We’ve seen a lot of movement in the theatrical industry of late, with chains trying various innovations to try to reshape and boost the industry without discouraging viewers. This week we see Cineplex bring another twist to the table. Blake & Wang P.A entertainment lawyer, Brandon Blake, unpacks the news. 

Online Booking Fee

In an attempt to bolster the slow post-pandemic recovery, Cineplex will now charge a $1.50 booking fee for tickets purchased online, both through their website and the mobile app. This charge will not apply to on-site purchases at ticketing kiosks, box offices, or for any consumables added to your bill. Currently, they’re presenting it as a quality-of-life upgrade aiming to invest and evolve the chain’s digital infrastructure while keeping movie going affordable. 

Echoing Ticketing Industries

The idea of an online booking fee is hardly novel at this point, although it’s a first for the theatrical industry specifically. Most ticketed fare, from live theater and concerts to sporting events, already use a similar system.

For regular theatergoers using the Scene+ loyalty program, the fee drops to $1, and members of CineClub will have it waived in full. This also brings Cineplex into line with AMC’s online surcharge. AMC are also currently using surge pricing in an experiment that’s been ongoing since the release of The Batman earlier this year. 

These initiatives are, of course, subtly prodding regular theatergoers towards their subscription ticket programs, a model we’re likely to see echoed through other chains soon. 

The cautious dance between trying to bolster the industry’s bottom lines without scaring off the returning movie going public is an interesting one. While this new introduction has a lot of backing in the wider ticked-event world, it will be interesting indeed to see how the theater-going public respond in turn.