Universal Sends Films to Peacock Within 4 Months of Opening

This week, Universal Filmed Entertainment Group has announced a major development in how their film pipeline will work going forward. BLAKE & WANG P.A entertainment lawyer examines what we know.

Brandon Blake– Entertainment Lawyer

As of 2022, Universal released films will open on Peacock within four months of their theatrical opening. This is, of course, a considerable acceleration in the traditional pay-one home entertainment window, which would once have been at least 6 months. It’s not the first move like this we’ve seen, however, with Disney, Paramount, and WarnerMedia all planning early releases for their prime titles on their streaming services.

The Universal model is a little different, however. Its 18-month pay-one window is specifically designed to allow content distribution over several platforms. Peacock takes over the first 4 months and the last 4 months. However, the intervening 10 months will allow other partners- namely Amazon Prime Video and IMDb TV- to take over. Intriguingly, HBO, their current pay-one partner, does not seem to be taking a share of the cake. The deal will include not only Universal titles, but those from Focus Features, Illumination, and DWA as well.

Offered reasons for the intriguing pipeline include reaching the broadest possible audience and maximizing profit from their vast film library. As the Universal theatrical schedule for 2022 includes anticipated titles like Jurassic World: Dominion and Illumination’s Minions: The Rise of Gru, results could be interesting. Peacock has languished a little since its launch, primarily due to the surge of focus on streaming by industry heavyweights. Despite meeting 42 million sign ups in April, that covers only 10 million paid subscriptions. It was also hoped that the planned 2020 Olympics could be used to promote the service after launch, only to have the international sporting event delayed until this Summer. Of course, this may well be the boost the service needs.

Universal has, to date, been something of a ‘pioneer’ in seeking to collapse the traditional theatrical window. We’ve already seen them controversially create a ‘premium VOD’ window a mere 30-45 days after theatrical release. Warner Bros, too, have announced their entire slate for this year will debut on day-and-date only, with immediate HBO Max access.

Will this be the future for theatrical release? It’s tough to say. One thing is for certain, however. This interesting new release pipeline will be well worth watching.

Applications now open for BFI non-English indie project fund

On the back of a reduced travel market and near-nil festival attendance for the previous year, the British Film Institute (BFI) has announced it will be channeling funds into a new one-year, ring-fenced fund to promote new non-English indie films. This represents a collaboration with industry stalwarts, including the Film Distributors Association and the UK Cinema Association. It will be administered under the existing BFI Audience Fund. Here’s what BLAKE & WANG P.A Entertainment Lawyer Los Angeles has found out for interested indie producers.

Brandon Blake– Entertainment lawyer

This one-year ring-fenced fund has open applications now, so if the project interests you, you will need to move. Applicants must show that they meet the Audience Fund’s existing objectives of widening audience choices and promoting diversity. And, of course, meeting the language criteria.

The Audience Fund has, on average, helped bring six non-English titles to life a year since it first began working in 2017. It’s no small list, either. Minari and Parasite both were birthed with BFI support, alongside Shoplifters, A Fantastic Woman, And Then We Danced, and the much-anticipated Night of the Kings.

Why now? In their own words, “In a year where international travel is limited, we’re bringing the world to audiences.” The one-year fund recognizes the hardships faced by smaller foreign-language titles, especially with distribution and the exhibition environment, during the tumult of 2020. The funding hopes to balance some of this setback and help ensure these indie projects can rebuild competitively in the sector over the next year.

If you’re an independent producer in this niche, now is the time to act to apply to the fund, so don’t hesitate. Overall, this is a worthy addition to the funding field for the industry, and BLAKE & WANG P.A will be watching with interest to see what projects it brings to life.

A low-key, but thriving, Cannes (and what it means for you)

We saw the Cannes online market hit this week, to a rather muted trading window. For the first time in many years, several key companies were missing from the project market. All the same, it’s hardly unexpected given the turbulence of the last 18 months, and there were some interesting picks up for grabs, too. BLAKE & WANG P.A Entertainment Lawyer Los Angeles reveal some of the Cannes ins-and-outs you should know in advance of the festival kicking off next week.

The survival thriller Suddenly was a hot commodity, despite being only the sophomore directorial outing for Thomas Bidegain. Add Dead for a Dollar, Pussy Island, and Daddio to your list of hot commodities to watch, as they’re sure to be winners.

The first deal of the market went to Andreas Wiseman, with the action-comedy Muscle going to German major Leonine. A juicy pre-sale in high seven figures makes this one of the biggest for Cannes in a long while, as well as one of Leonine’s most lucrative snags. It looks like a win-win all around on that one.

Overall, it’s not a bad bit of pre-festival build-up, given the current economic climate. The Cannes Film Festival itself will kick off on July 6th. This year also brings us another interesting Cannes milestone- with 5 of the 9 spots going to women, this will be a majority-female jury despite Spike Lee sitting as president. The women in question are, of course, noted French singer Mylène Farmer, French-Senegalese actor/director Mati Diop, Maggie Gyllenhaal, Mélanie Laurent, and Jessica Hausner. We’ve also seen the Cannes Classics section unveiled, including the 2001 hit, Mulholland Drive. All in all, it’s an interesting setup for the Festival itself. How will things fare for the rest of the festival? That, of course, remains to be seen- but BLAKE & WANG P.A Entertainment lawyer will keep you in the loop, of course!

Brandon Blake– Managing Partner at Blake & Wang P.A.

The Gauge reveals surprising data for studios and advertisers

Nielsen’s new monthly measurement, The Gauge, has revealed surprising- and slightly startling- data on how Americans consume their media. What does this mean for studios and advertisers, however? BLAKE & WANG P.A best entertainment lawyers in Los Angeles one of the best entertainment law firms Los Angeles dives into the details.

Brandon Blake– Entertainment Lawyer

For May, we see Americans consume 25% of their TV through broadcast services, 26% through streaming, and a rather startling 39% through cable. It’s no surprise that the TV landscape has been forever altered by 2020’s unprecedented events. This data, however, doesn’t quite reflect what we would have anticipated. In a world where more and more people are shifting back to their pre-pandemic habits, we’re definitely seeing a continued interest in streaming services, and people are still sampling their many options. It’s not unrealistic to say that, as TV production ramps up in turn, we’ll also see what content enters the space to give individual services traction with viewers.

Currently, the strong favorites- Netflix and YouTube at 6%, Hulu at 3%, Amazon Prime Video at 2%, and Disney+ at 1%- are no surprise to anyone. Future patterns, however, could well change significantly.

We’re also seeing a continual branching of service. Almost every streaming channel has migrated to offering both premium and ad-supported content, regardless of which option came first. Marketers have long been complaining that Nielsen did not keep its methodology up-to-date for the streaming era, lacking visibility into how the market was divided between linear TV and streaming. Likewise, networks have complained that there was undercounting of their viewership. Hence, of course, the introduction of The Gauge to start with.

On top of this, we have the new direct-to-consumer models being so wholeheartedly embraced by Disney, NBCUniversal, and WarnerMedia. In a world where your revenue depends on ads, you need metrics to make your best decisions. When that data isn’t there, it’s an issue.

Now we have the figures. The question is, what will we do with them? BLAKE & WANG P.A top entertainment law firms Los Angeles will be watching for studio and advertiser response with interest.

Improved working conditions during the pandemic may have stalled union negotiations

This week we see IATSE and AMPTP fall into an awkward hiatus with no resolution in sight. While talks will resume on July 6th, far in advance of the 31st July contract expiration, it’s still a strained situation. BLAKE & WANG P.A entertainment law firms Los Angeles examines one potential factor behind the failure to meet common ground.

Union reps have stated that there seems to be no meeting in the middle on key aspects they wish to address, hence the reason for the deadlock. Our industry contacts suggest some of this could well be linked to the swift and decisive response to the pandemic that allowed many sets to reopen and continue working throughout the troubled past year.

This, it is claimed, demonstrated that safe and thoughtful workplace management is possible, and thus the union feels that key changes to what it claims are ‘dangerous working conditions’ can easily be made. Think meal breaks and rest periods, as well as better handling of ‘Fraturdays’, long shoots that extend late in the night on Friday and Saturday.

Brandon Blake– Managing Partner at Entertainment Attorney Blake & Wang P.A.

The news isn’t all gloomy, however. IATSE leaders have told members that good progress has been made on diversity and inclusion matters. The primary hitch seems to lie in economic matters, including funding for the Motion Picture Industry Pension and Health Plan. Companies want greater cost-sharing from workers, while the union is pushing for funding from streaming residuals.

Overall, it’s not been looking good, and it’s easy to see why the talks have stalled to the extent they have. Let’s hope that with the break until July 6th, cooler heads can come back to the negotiating table and a better set of compromises can be found. As the contracts in question expire on July 31st, there will be time pressure to consider when talks resume. BLAKE & WANG P.A one of the best entertainment lawyers in Los Angeles will, of course, be watching the situation carefully.

WarnerMedia AVOD Service Launches Despite Discovery Merger

This week we see the new, discounted ad-supported tier for HBO Max, the streaming service associated with WarnerMedia, launch with some success. This comes alongside the sudden merger of Discovery and WarnerMedia, as parent AT&T spins them off in a deal expected to finish by the middle of next year. BLAKE & WANG P.A entertainment lawyer Los Angeles has the information you need.

The move to offer an ad-subsidized tier, something of the opposite journey to services like CBS All Access and Hulu, is an interesting one. However, if one looks further back in the history of cable TV, it’s a very similar move to what we saw work well there- MTV, AMC, and Bravo all have similar stories to tell. In fact, mining both advertiser income and paid subscriptions is very much a hallmark of paid TV, something streamers used to shy away from. For streamers, it works out with less share due to distributors, too, given the direct-to-consume model, so it’s not surprising we’re seeing such growth.

Brandon Blake– The Entertainment Lawyer

The move to offer an ad-subsidized tier, something of the opposite journey to services like CBS All Access and Hulu, is an interesting one. However, if one looks further back in the history of cable TV, it’s a very similar move to what we saw work well there- MTV, AMC, and Bravo all have similar stories to tell. In fact, mining both advertiser income and paid subscriptions is very much a hallmark of paid TV, something streamers used to shy away from. For streamers, it works out with less share due to distributors, too, given the direct-to-consume model, so it’s not surprising we’re seeing such growth.

Is it a competitive tier, however? While Netflix, Amazon Prime Video, and Disney+ have all enjoyed their growth without the need for ad-supported tiers, AVOD has blossomed over the last 24 months. This has been considerably helped by the roll-out of smart TVS and connect-TVs.

Over 35 brands are slated to go live with HBO Max over the first 4 weeks of its run, and the company press release promises that both subscribers and viewers will win with the new arrangement. In fact, WarnerMedia ad sales chief JP Colaco promises the new tier is an “innovative, best in class streaming ad experience”. Ads, driven by personalization, will not be intrusive or annoying. Of course, they would promise all of this. How will it work out in practice? BLAKE & WANG P.A entertainment attorney Los Angeles will be watching further developments for the AVOD tier with interest.

Recap of the Disney 2020 restructure

Brandon Blake– Entertainment Lawyer

This week we’ve seen Bob Chapek, CEO of The Walt Disney Company, reiterate their intention to focus most efforts towards their booming Disney + streaming service and overall direct-to-consumer business. Here’s a recap from BLAKE & WANG P.A Entertainment Lawyer on where Disney stood coming out of 2020.

The major purpose of the reorganization begun last fall is to solidify the creative aspects of the global giant on content for direct-to-consumer resale, although legacy platforms will still get a nod. The then-newly created ‘Media and Entertainment Distribution Group’ took charge of the monetization of this process, from distribution to sales, under the wing of Kareem Daniel. He stepped into this role from his former position as President for Consumer Product, Games, and Publishing. Additionally, we saw 3 other content creation groups: Studios, General Entertainment, and Sports. These were headed by Alan F. Horn, Alan Bergman, Peter Rice, and James Pitaro.

There was no restructuring (at the time) among the live-action parks and experiences arm of the company. We did see former Disneyland President, Rebecca Campbell, move to Chairman, International Operations and Direct-to-Consumer. Bob Iger, Executive Chairman, continued to oversee the creative process.

What did this mean for the content arms, then? Content was created under the ‘Studios Content’ banner as franchises for Disney +, theaters, and other direct-to-consumer services. This covers Lucasfilm, Pixar, Walt Disney, Marvel, and Searchlight. General Entertainment took over episodic content and long-form content for cable and broadcast as well as streaming, covering 20th TV, ABC Signature, and Touchstone with ABC News, Disney Channel, FX, National Geographic, and Freeform. Sports, obviously, centered on ESPN, live sports, news, and non-scripted related content. Most cable presence ended up nesting here.

Just this week, we’ve seen further major developments, with the creation of the Disney Media and Entertainment Distribution Technology Group. With this comes an entirely new structure, with better tech incorporation, to help address the goals laid out last Fall. Stay tuned for our take on these new developments!

Cinema content discussions go international

Brandon Blake– Managing Partner at Blake & Wang P.A.

BLAKE & WANG P.A entertainment lawyer Los Angeles has been reporting with interest on the many negotiations between the theatrical industry and content creators over the past few months. After all, there’s little point in green lighting screens to reopen if there’s no enticing offerings to bring in the viewers past reopening weekend. What will content deals for the international exhibition industry look like? Let’s look at what we know.

Cineworld has recently reached an arrangement with 3 major studios for both the US and UK markets. Discussions with Sony and Paramount are still underway, and it’s our understanding that other major exhibition groups also have talks underway with this ‘Big 5’ of the content production industry.

There’s still some lingering questions if this will truly be the end of the 15-month interruption to business as normal, or if there are still chances of this being another false start. Already we know that France has decided on a cap of 400 cases per 100,000 inhabitants before local authorities are compelled to roll back or slow economic reopening. Yet France has also seen 20 M people receive at least 1 dose of a vaccine. We’ve also had encouraging news this week that many of the major vaccine manufacturers have seen results against evolving strains of the virus, suggesting the chances of a full lock down returning are far less than ever before.

For now, cinemas can open with a slate of much-anticipated movies, including some Oscar winners and nominees. France estimates numbers as high as 400 among films that were postponed in 2020, and was able to put 14 new-to-market releases on the table. We’ve already seen a surprising willingness to return to exclusive theatrical windows from US studios, albeit at a curtailed 45-day window, before options to push to streaming, so we’ll likely see similar arrangements cut for the international market. In the meantime, BLAKE & WANG P.A wishes the reopening cinemas the best.

The Golden Globes Takes A Knock

With a disappointing Oscars behind us, it seems there’s more dismal news from the Awards Ceremony plate. BLAKE & WANG P.A entertainment lawyer Los Angeles takes a look at why the Golden Globes is now seeing its plans come under fire.

Diversity has been the watchword of the year, and we’ve seen many reforms and proposed legislations come into play across the entertainment landscape. That’s anything from individual studios promising action, to country-wide legislation and, yes, a host of promises from institutions in the industry, awards ceremonies included. This week, we’ve seen the Hollywood Foreign Press Association savaged for these same promises, however, calling them “window dressing platitudes”.

We’ve seen NBC pull their 2022 prizes, dissatisfied that the HFPA can ‘do it right’ without longer reforms. We’ve also seen Tom Cruise return his golden globe, and others are threatening to follow. What on earth happened?

There’s been decades of controversy around the Globes, let’s be honest. With zero black members, the HFPA’s many gaffs, snubs, and look-overs suddenly seem a lot less strange. While (of course) reform has been promised swiftly, it seems unlikely to be forthcoming in anything other than promises, and several heavy-hitters (including Amazon, Netflix, and celebs) have lined up to take a swing at the institution.

That’s not to say all of the HFPA necessarily feel chagrin. Many are confused as to why the firestorm erupted as it did, expressing bafflement that their lack of diversity was ‘suddenly’ a problem. There’s even been cries of foul play, suggesting much of the controversy is being generated by people wanting to jump on the bandwagon and earn their own 10 minutes in the spotlight.

Political maneuvering, or genuine concern? Only time will tell. Still, we see the HFPA dedicated to an astonishingly swift program of reforms set to culminate on August 2nd of this year. BLAKE & WANG P.A one of the best entertainment law firms Los Angeles will be watching with interest.

Cinemark adapts offerings to secure deals with 5 main studios

As we’ve already reported this week, Cinemark and the 5 main continental U.S studios- Universal, Walt Disney, Warner Bros, Sony, and Paramount- have reached individual deals to ensure theatrical showcase windows for the chain. While the information on the specifics is scarce on the ground, BLAKE & WANG P.A one of the best entertainment lawyers in Los Angeles digs a little deeper into what we know.

First of all, Cinemark CEO Mark Zoradi has made clear that each deal is deliberately different from each other, tailored to the ‘mutual benefit’ of both parties. He’s on record as stating that Cinemark has ‘look(ed) at the desires of each studio’, as well as their priorities, and adapted each deal to suit these. Asked about splits, Zoradi has said not to expect any significant change, and that there’s likely to be little material difference in how the box office is split.

Collectively, we are told, this should ensure a constant supply of content to the theater chain, and is said to demonstrate “a shared commitment to offering consumers the ultimate movie-viewing experience, with compelling content exhibited within the theatrical environment.” That’s certainly what Cinemark, as well as other players in the exhibition landscape, need. While the industry has seen an impressive rally after the opening of the New York City and Los Angeles markets, it will be sustained releases and attendance numbers that will really drive a recovery in the industry, which did suffer considerably under the closures last year.

To date, the rally in the exhibition industry hinges on selling audiences the notion that, despite the ease of streaming to the home, only the theater experience can provide immersion and a ‘larger-than-life’ experience to clients. Will these deals be the secret weapon Cinemark needs to reposition itself on the entertainment landscape? Only time will tell, but BLAKE & WANG P.A Entertainment Attorney will be there to keep you informed.