The global lockdowns have certainly had a profound effect on the international economic landscape. Unsurprisingly, some industries have been harder hit than others, with travel and recreational pursuits taking possibly the hardest hit of all. For movie theaters, which weren’t always doing all that well even in the pre-COVID business world, recent losses have reached staggering proportions. We’ve now heard that giant exhibitor AMC entertainment is looking to reopen theaters come July-so BLAKE & WANG P.A, as one of the top entertainment law firms Los Angeles has, are taking a closer look.

Staggering first-quarter losses-and a remarkable turnaround

We certainly can’t debate that they need to kick start revenue generation. From a mere $130million in the red last year, we’ve seen AMC Entertainment losses drop to $2.18 billion through the first quarter (and the COVID crisis). This amounts to a 22% drop in revenue when compared with the same quarter last year. Free cash flow plummeted to $275 million in the negative. The declared adjusted net loss is $231 million. In its centenary year, those results are both sobering and straight-up depressing.

Nor is that the only hit they’ve taken recently. Wall Street has continually lost faith, expecting a Chapter 11 bankruptcy at any moment. Moody’s and S&P have downgraded them, and S&P has even accused their ‘distressed debt swap’ of being a veiled default.

 Yet despite this bad news, we’ve seen a remarkable plan of action rolled out. From renegotiating with landlords to have first quarter rents forgiven, to other sweeping talks with stakeholders, no one can accuse AMC of slacking. The plan they’ve rolled out seems quite formidable-on paper, at least.

Theatres set to reopen in July

As it stands now, and with that hard work done, AMC plans to reopen almost every U.K and U.S theatre from July, in time to showcase Warner Bros’ release of Christopher Nolan’s Tenet. An ambitious lineup follows, with Disney’s Mulan (July 24th),Unhinged, Saint Maud, Antebellum, Sponge bob Square Pants, Wonder Women 1984, A Quiet Place II and Black Widow all scheduled, amongst others.

This is in addition to 10 theatres already reopened in areas of the EU and plans to reopen globally by July.

 But what about the ongoing public health crisis? That has been covered by the plan too. They have made promises to:

●Carefully coordinate their openings with national and international officials

●Use guidance from former and current Harvard University School of Public Health faculty to shape a safe environment for staff and guests. This is supplemented by a partnership with the Clorox Company.

●Use both guest health education and ‘aggressive marketing communications and promotional activity’ to ‘jumpstart’ consumer demand and bolster trust.

Will it be enough to get the fabled ‘bums on seats’? We shall have to see. AMC Entertainment certainly has high hopes of it being enough, pointing to pre-COVID February revenue increases as a baseline to believe the movie theater industry can be revived from its current slump. This mass turn-around and wide-spread salvage strategy has certainly affected the share price for AMC, boosting it from the lows it had sunk to after the ratings downgrade.

When these announcements were made via conference call earlier this week, the incumbent CEO ended with the lines “We will do everything in our power to make sure that this company thrives and prospers. With that, see you at the movies.” While this probably won’t be a blockbuster summer for going to the movies, AMC Entertainment has certainly tried their hardest to avoid becoming as redundant as the Blockbuster rental chains once did. We can only hope public buy-in is strong enough to show results.

If you’re looking to keep up-to-date with the constantly shifting goalposts COVID-19 has dumped on the TV and film industry, look no further than BLAKE & WANG P.A, one of the best entertainment law firms San Francisco has to offer. We always have our fingers on the pulse of new developments, so rest assured we have the knowledge to help you position yourself in this novel landscape.

With AMC’s dismal Q1 earnings-and their recently announced turn around plan-fresh on everyone’s minds, analysts can be forgiven for being concerned over the perceived stand off  between AMC and Universal studios. After all, Universal is currently handling the overseas distribution of MGM’s 007 film, No Time to Die, due to open in the US on November 25th,and possibly earlier internationally. We can’t blame them, either. After all, it wasn’t that hard to find the statement buried deep on page 3 of the AMC earnings report: “While we are inactive dialogue with Universal, no movies made by Universal Studios are currently on our docket.” BLAKE & WANG P.A take a closer look at the current state of relations, and where the future may take us.

The source of the poor relations between AMC and Universal

These developments come about a month after a very public note from the AMC CEO announcing a ‘public ban’ of Universal titles from AMC theatres. The cause of this angry letter?

The PVOD release of  Trolls  World Tour from DreamWorks Animation.

It’s tempting at first to laugh about a children’s movie being the cause of drama, but if we take a closer look at the economics, it does make sense. Universal earned $100 million from that release, deep in the heart of the lockdown. They have stated that they will do a theatrical day-and-date VOD for the film as well once theatres full reopen-but the chances of a wary public biting seem slim. Why not stay at home, socially distant, instead? There’s areal revenue loss for AMC in the move, and maybe the hurt feelings aren’t so irrational.

Smoothing ruffled feathers

In a statement made earlier in the week, however, the AMC CEO paints a rosier picture:

“So, look, relations are warm with Universal. They have always been warm, and I’m using that as a good word. There’s nothing personal about this issue with Universal. I have great respect for Universal’s executives. It’s just an issue about money. We are in active dialogue with Universal.”

Universal has yet to respond, but given that the statement was very recent, that doesn’t really indicate much at all.

Warner Bros’ play for screens

While it is quite worrying-and possibly shortsighted-to see a theater chain that needs every draw card possible engage in a spat with one of the major studios, it may not be as big a deal as you’d expect overall. Warner Bros is currently looking to monopolize every possible screen for the projected July 17th premiere of Tenet. Likewise, most reopening theaters, including AMC theaters, are banking on the film to make that date, and for the screenings to actually happen. That’s not 100% guaranteed at this moment, especially with the pandemic only corralled for now, not defeated outright.

Add to that the fact that Disney has yet to recall it’s furloughed distribution ops to handle the projected July 24th release for Mulan, and there’s rather bigger fish to fry for AMC currently. Universal has nothing on the cards until the late August release of Let Him Go.

Will the dispute have been resolved by then? No one can say. It’s also a little early to tell if AMC has the bargaining power they clearly believe they do, given the hit the lockdown theater closures have had on their baseline earnings. Can they pressure Universal to dance to their tune? Or will it all slide under the table, forgotten? It will be interesting to see how things develop over the next few months.

Corona and the global lockdowns have had a profound impact on the entertainment industry worldwide, and it can be a little difficult to know how best to position yourself to make sure you’re in the right place at the right time for success. Why not get one of the best entertainment lawyers in Los Angeles on your side? BLAKE & WANG P.A have almost 2 decades of experience in the industry, and all the expertise you need to stay on top of the tumultuous state of the post-COVID entertainment industry.

AMC Entertainment this week announced a surprisingly robust plan of action and the re-opening of its theatres globally by July. On the heels of agonizing-but hardly unexpected-first-quarter results, it’s been enough to re-inject some much-needed life into their share price. Among the lineup proposed to see the theater through to the end of the year, however, there’s one notable absence-anything by Universal Studios. That ‘oversight’ was hardly a surprise to BLAKE & WANG P.A’s very own Brandon Blake, as an entertainment attorney. Los Angeles has been buzzing with news of their dispute for a while now-and here’s the key takeaways you should know.

AMC’s Q1 earnings released

To take a moment to look at the bigger picture, one of the key announcements this week was the overall state of AMC Entertainment’s Q1 earnings. It will come as no surprise to anyone that the COVID-induced theater closures had a profound negative impact on their earnings, leaving the company in a startling debt hole.

Nevertheless, they also came out the gate swinging. News of a drastic reshaping of rental terms, an extensive health and safety policy shaped by Harvard Public Health minds, the rollout of theater openings from July, and plans to ‘jumpstart’ the public into returning to theaters have had a positive effect on AMC shares that hasn’t been seen since their Moody’s/S&P down grade.

The Universal/AMC spat has nothing to do with this, of course. Yet it still managed to slip into the earnings release. Buried deep on page 3, we find the statement, “While we are inactive dialogue with Universal, no movies made by Universal Studios are currently on our docket.”

The context behind the spat

This addition to the quarterly report comes just over a month after a public note from AMCCEO and President, Adam Aron, to Universal Studios Chairman Donna Langley. The note was, in effect, a public ban of all of the studio’s future titles.

What could bring on that degree of ire amidst already trying times? The PVOD release of DreamWorks Animation’s Trolls World Tour. It seems a little surreal that a children’s movie could cause such backlash, but with Corona forcing everyone to reevaluate their business models, maybe it shouldn’t be so surprising. Any entertainment attorney Los Angeles trust scan tell you any loss of income at all right now is too much for comfort.

The PVOD release has, to date, netted Universal $100M, as well as AMC’s ire. While the studio has made statements to the Wall Street Journal that it will also use a day-and-date theatrical VOD once theatres reopen, one can, however, ask if they expect anyone to go and see it. Would it not be more comfortably seen in your own home, safely distant from possible disease vectors? Realistically, it’s a Universal success that will hurt AMC greatly, at a time they can least afford it.

In conclusion

While AMC may well have just cause to be angry at Universal, it also has bigger concerns right now. Warner Bros are keen to grab up any available screen for the projected July 17threlease of Tenet, yet it’s not entirely certain the film will make that release date with the shifting state of global health and international restrictions. Likewise, Disney continues to claim July 24th for the release of Mulan, yet has made no efforts to call back furloughed distribution staff for the film. AMC also has the considerable logistics of their own theatre reopening to manage, set to begin rolling out in mere weeks.

Universal, meanwhile, has the Costner-Lane crime drama Let Him Go as the first slated theatre release for the year, all going well. With August 21st as the date, AMC has plenty of time to sort out its issues with the studio. Kajillionaire and Candyman in September, and the sci-fi movie Bios in October, look fit to flesh out the remaining Universal lineup.

So while the first ‘ban’ was certainly called in a temper, it does seem that AMC is making moves to mitigate the knock-on effects from hurting their current public image. Do they really have the room to bluff and bargain that they think they do, with dismal earnings and a desperate need to get any-and-all visitors into theaters worldwide once they reopen? That, only time will tell.

 Are you looking for entertainment news and advice you can trust? As one of the best entertainment lawyers in Los Angeles, BLAKE & WANG P.A’s Brandon Blake has the industry insight you need to help you navigate the muddy post-Corona waters of the entertainment industry, so don’t hesitate to get in touch with us today.

Submitting your pitch to any outside party can feel like a fraught experience. How do you showcase the best aspects of the project, without completely losing control of your concept? What materials should you send, and how do you protect them? Today BLAKE& WANG offers you some tips from our decades of experience in entertainment law and helping clients get successful pitches.

How to present your project well

Whether you’re looking to ship a TV series or a film, the process is equally applicable. The key to protecting and presenting your project properly will lie in having it as well developed as possible.

This means that a script will always be favorable to a treatment, a polished and finished script to a rough draft, and so on. Try to prepare pitch materials beyond the script, too, like posters and websites. And, wherever possible, package your project. The presence of A-list performers attached to the project will get the attention of development executives. The studios know that the performers-and, in turn, their agents and managers-like the project, meaning less risk for them in choosing your material over the thousands of scripts they receive each year. Remember that another key to submitting a project and having the networks pay attention is using an entertainment lawyer. San Francisco, and in fact the entirety of the US, places strictures on lawyers that make a pitch brought through a law firm more secure (and possibly enticing, if your firm has the right connections like BLAKE &WANG P.A does). We take a look at this in greater depth below.

What if you don’t have these materials?

So, what is your position if you don’t have a script, let alone packaging? It’s not impossible to pitch like this. In fact, it’s often seen in projects revolving around real-life events and stories. Your concept may well be good enough to speak for itself. Here, it’s critical the producer ensures the underlying rights to the project are watertight. As these are not matters of well-developed intellectual property, where copyright offers protection, you may need to secure your rights to the material through contract law.

Agree or not, copyright requires a tangible form of expression-i.e, a mere idea cannot be copyrighted. Of course, the lines between ‘idea’ and ‘treatment’ can be difficult to determine-but ask yourself this: do you want to be the producer arguing that your pitch was more than an idea in court? Some networks won’t even accept pitched ‘ideas’, feeling that the chances of the project being unique enough to be a standout without leaving them open for claims of a stolen concept later are relatively slim. If you intend to take this route, your pitch will be harder.

With years of experience under his belt, Brandon Blake of BLAKE & WANG P.A knows what type of materials networks and studios look for in pitches. Your key lies in top-quality materials-don’t ask the development execs to ‘imagine’ how good the project will be with their help. Rather put on the table your ability to finish the job, which will get you the assistance and financing you need.

And above all, choose a reputable lawyer from one of the top entertainment law firms. San Francisco, L.A and NYC-indeed the entirety of the U.S.A-require lawyers to be associated with regional and national bar associations, and to adhere to strict legal standards. Although your lawyer represents you, many networks and studios will hear pitches brought to them by a legal firm they would not hear from you alone. Your law firm will save all material and correspondence, keeping a meticulous record of the submission and chain-of-title, protecting both of you and making stolen concepts/ideas a non-issue.

As always, we offer our articles for information purposes, and they do not replace qualified legal counsel. Always discuss matters of legal complexity with your own legal team. BLAKE& WANG P.A have decades of experience helping producers to pitch their work successfully, so don’t be afraid to reach out to us today.

What is co-production? Why would you even consider looking outside of the US market for production companies to partner with? Today BLAKE & WANG P.A takes a closer look at the intricacies of co-production agreements, and why it may be worth considering one for your next project.

When they say ‘co-production’, what do they mean?

Co-production between production companies can cover a huge variety of ground. It can be as simple as, say, hiring a Canadian post-production house to do your editing. While a very limited relationship, it’s a type of co-production. There’s a huge amount of ‘informal’ co-production undertaken every day, and there’s really no geographical limit on who you work with-you can choose from companies based almost anywhere in the world.

There is, however, a difference between these ‘informal’ co-productions and an ‘official’ co-production.

Why would I consider an official co-production agreement?

When you form an official co-production with a foreign production company, you will have the chance to take advantage of some additional international incentives, tax credit schemes, and more. There will also be the matter of access to TV markets, and the opportunity to market in the country/countries of your co-producer as a ‘local production’.

This is dependent, however, on the treaties made between nations. Canada, for example, can be called the ‘king of co-production’…it has co-production treaties with more countries globally than any other. China has also been active in this market recently. Many EU countries have co-production treaties, and there are some EU-wide incentives available. Don’t assume, however, that just because a company is part of the EU it automatically has treaties with other EU countries, as this is not legislated. Rather contact the film commission in the country to determine your potential co-production partners.

The US lacks co-production opportunities

Oddly, the US is lagging when it comes to having these international treaties in place. It’s slightly baffling to see, as an entertainment lawyer. San Francisco, Los Angeles, and New York may bost film hubs unrivaled worldwide, but we don’t even have a treaty in place with Canada or Mexico, our immediate neighbors.

We do, however, have in place with China. The Chinese film market is currently thriving, and production companies have access to some things we only see at studio level-glassless 3D, VR, 3D technologies, and much, much more-is being found in wide use. Yet even then, our treaty is limited, and we can neither market US-made productions as ‘local’ in China or gain many film incentives through the treaty in place. Still, it’s a worthwhile market to explore.

Taking advantage of foreign co-productions

To truly take advantage of the opportunities of foreign co-productions, however, one needs access to other international co-production partners. It’s becoming common practice to find multi-part co-productions across 3 or more nations. As countries globally have moved to protect their national TV/ film industries, the preference is to support local production and incentivize those who support it in turn.

There are key opportunities to access foreign co-production incentives if you know where to look, and with one of the key entertainment law firms Los Angeles trusts on your side, BLAKE & WANG P.A is here to help you take full advantage of available international incentives. Don’t hesitate to reach out to us today.

As always, this is a complex area of entertainment law to approach, and you should always seek legal counsel specific to your situation before acting on anything you see in our advice columns.Top of Form