With Studio City Toronto now under the banner of Canadian production equipment rental giant, William F. White International, after a fierce bidding war, the race to acquire and own soundstage space is hotter than ever. Blake & Wang P.A entertainment lawyer, Brandon Blake, takes a closer look at this new deal.

Undisclosed Deal

While the precise terms of the deal have not (yet) been made public, the iconic studio complex that has hosted pictures as varied as Spotlight and My Big Fat Greek Wedding over its long history is reported to have launched a bidding war for its 148,000 square foot space. With this acquisition, William F. White International now owns a whopping 1.55 million square feet of production space across Canada. This also brings Studio City Rentals under their banner, too. 

Built in 1988 and once part of Showline Studios, the complex was acquired by the City of Toronto in 2017. In 2018, it was allocated to Studio City Rentals under the new name, Studio City Toronto, with three new soundstages commissioned.

Production Space Wars

We’ve seen demand for soundstage space soar this year, both as streaming demands put production cycles into hyperdrive and as the need for cost-effective filming solutions to combat the effects of inflation on the entertainment market rise. Canada has become a popular filming destination over the past year, too, with appealing tax incentives and proximity to the US both making it a sought-after destination.

While this may be a near-historic location, we’ve also seen a studio construction boom hit both Toronto and Vancouver, with over $1.5B of new investments under development. It’s certainly a positive space to be in at the moment, and it will be interesting to see these revamps and new developments unveiled over the next few years.

Despite an overall improvement in Box Office prospects in 2022, the overall mood of the theatrical release model is still in flux. For cinemas, pulling a film like Glass Onion 2 from the screens a week into a highly successful run is a bad move, no questions asked. After its surprisingly successful run from a production house and streamer not exactly known for theatrical releases (Netflix), is it really all that stupid, however? Our resident Entertainment Lawyer Los Angeles, Brandon Blake, from Blake & Wang P.A, examines how this highly truncated theatrical run works out overall.

Records Set

Netflix has been notoriously theatrical-release shy since the beginning. Glass Onion 2 may make them revisit that overall. Not only does its $15M in domestic gross alone position it in a comfortable number 2 spot (behind, of course, Black Panther: Wakanda Forever), it also represents not only their widest theatrical release ever, but also their strongest theatrical takings, with grosses doubling expectation. For it to now disappear for almost a month, until it resurfaces on the streamer on December 23rd, seems ridiculous at first glance. And with nothing solid to replace it in cinemas currently, that’s certainly true on the theater side. Has Netflix left all that money in the wind as it seems, however?

A Large Planned Preview

Despite the solidity of that $15M, it’s a fraction of what this film has the potential to do in theatrical release. But Netflix has always used what theatrical runs it does give us as a marketing tool, a kind of splashy trailer to drive hype for their streaming products. Offering such a small sample for an undoubtedly popular film, then delaying gratification further with a long gap, is a gamble that could net them more subscribers and more eyes on the final product- its run on their streaming service. With no time to lag, viewers saw the theatrical release in ideal conditions with a strong audience at each showing. Word of mouth should be solid. It will qualify for such awards as it has potential to bring home. And it kept an air of near-exclusivity.

It’s  a gamble, yes, but one that could pay off well for the streamer in the end. The ultimate expression, if you will, of how theatrical boosts streaming. In the end, it could see more Netflix productions in-theater and other streamers following suit, too. For now, we can only wait and see.

If there’s one thing that the post-pandemic recovery period has made clear, it’s that theatrical releases are far from dead. In fact, we’ve seen compelling evidence that for many productions, a combined theatrical-streaming release plan can be the best performing option. It seems Amazon has gone all-in on that idea, as we see them pledge to spend a whopping $1B in theatrical release productions per annum. Brandon Blake, entertainment lawyer and industry expert with Blake & Wang P.A, has all the details for us.

Cinema Stocks Rise

As can be expected on the back of a rather large spending pledge, we saw cinema stocks rise on the back of the news that Amazon intends to release 12-15 theatrical films a year starting in 2023. Additionally, some Amazon insiders suggest this number could rise in coming years. No doubt some of these will be produced under the MGM banner now it falls under Amazon leadership- they were fairly clear about their intent to keep the Hollywood powerhouse producing movies. 

Trend Reversal

As we see more and more key streaming studios make a push into the theatrical landscape, it’s hard not to remember the early pandemic backlash from key players- yes, Netflix, this does mean you- against the idea of theatrical releases at all. At best, we were seeing a push for a model with very truncated theatrical releases before the push onto the associated streamers.

However, as this year has amply demonstrated, we’ve seen streamers reevaluate this stance. Theatrical releases have proven a key player in the overall marketing cycle for properties, offering better ‘hype’ and visibility for key releases and a notable way to distinguish them from the never-ending content churn feeding the gaping streaming maw. With Apple+ TV also making inroads into the space with an enthusiastic embrace of the theatrical with streaming model, we will doubtless see even more support for theatrical releases in years to come.

Quentin Tarentino is hardly known for conformist opinions. However, he has been a very vocal naysayer of the current swing to ‘big brand’ cinema offerings above the more creative pieces and boutique viewing experiences we once saw dominate the industry. Weighing in on the future of the theatrical experience, he had some interesting opinions to offer- and entertainment lawyer and industry expert, Blake & Wang’s Brandon Blake, has the gist of the argument.

A Four Year Window

Despite this year’s clear swing back in favor of the theatrical experience, he suggests that it is the next four years, and how cinemas adapt to the changed climate, that will solidify how cinema survives in the streaming generation. Surprisingly, he seems to put his money on boutique chains, not big brands, to win the battle. Of course, he is hardly a completely impartial observer, given he himself owns the historic New Beverly cinema in L.A.

There’s certainly some value in the idea that ‘boutique’ individual cinemas and chains can remain more adaptable and versatile in an unsteady climate, but whether such a lofty prediction will hold weight long-term is questionable. We’ve seen big chains and boutique cinemas alike struggle to recover the lost ground of the pandemic, with the smaller ‘big’ chains seeming to fare the best in this year’s recovery.

The Content Question

He also took a- perhaps earned- dig at the rise of Netflix-style originals, calling them a ‘TV show of sorts’ despite their feature-length format. Of course, this is hardly the first streaming dig from the director, and he’s even on record as calling the streaming era ‘depressing’. Presumably in an attack on the lack of ‘artistic’ movies and the current focus on IP franchises and superhero-style movies. Given he has made some streaming deals recently, one could take it as a little hypocritical- but he is likely not wrong in the fact that some ‘worthier’, or at least more individual, fare will be needed to ensure the continued health of streaming and cinema alike. The current trend of sticking with the ‘tried and true’ certainly cannot sustain the film industry forever, but is understandable as we still struggle to fully recover from pandemic setbacks. 

Overall, it’s an interesting, if rather controversial, take on the state of the current movie industry. Will he prove right? Only time can tell.

As is rather fitting for a much-anticipated release, The Fabelmans, the first Stephen Spielberg film in a long while, will be having a platform release through 4 NYC and LA locations before wider release. With marketing heavily skewed to pulling cinephiles into the theater while still attracting a wider audience, it’s a unique moment for the Oscar hopeful. Blake & Wang P.A entertainment attorney, Brandon Blake, takes a look.

Toronto Favorite

The release of semi-autobiographical The Fabelmans, also expected to see some Oscar nominations, has been eagerly awaited since its premiere at the Toronto International Film Festival earlier this year. It’s been well received critically, and actually received the TIFF’s People’s Choice Award, too. The 4- cinema release strategy is intended to allow word-of-mouth to snowball, with a further 600 screen release across both arthouse and commercial theaters intended for later this month.

While some of Spielberg’s greats- think Schindler’s List, Lincoln, and The Post– used the same limited opening into wide release strategy, it is an unusual one for modern films.

Strong Media Campaign

We’ve seen a ton of media campaigning for this film, too, including hints that the director himself may grace some of the early red carpets. From Spielburg and cast alike hitting up everything from CBS Sunday Morning to The Today Show, it has even popped up for a spot on connected TV takeovers with Amazon, Samsung, and Roku. It certainly doesn’t have the easiest release date, with the early screenings overlapping directly with the premier of Black Panther: Wakanda Forever, which will doubtless still be pulling in strong audiences at the later, larger rollout too. We also see a ton of strong festival favorites and Oscar hopefuls launching now, from Tar and Triangle of Sadness to The Banshees of Inisherin and Aftersun. Perhaps the hype generated by the novel release vehicle will help push it to some prominence.

While we know the end goal of newly minted Warner Bros Discovery is to combine their two current streaming platforms- HBO Max and Discovery+- into one entity, details are still frustratingly sparse, including a solid timeline for the coming merger. We now know one thing, however- whenever it happens, expect subscription costs to rise, too. Entertainment attorney with Blake & Wang P.A, Brandon Blake, gives us the full story.

3 Years Without Increases

In absolute fairness, HBO Max has now gone three years with no changes to either its subscription pricing or its advertising experience on ad-supported offerings. It set its monthly premium tier subscription at $15 in 2020, and there it has remained since. In June last year, a $10 ad-supported tier was added. However, news that the ad load may well double by the combined entities launch likely won’t be accepted all that well across the board. Currently, HBO, HBO Max, and Discovery+ have a combined 94.9M subscribers.

An Early Spring 2023 Launch?

As Warner Bros Discovery makes huge changes to their upcoming content and even their operating models, news about the merger of their streaming platforms has been slow to arrive. Currently, they’re eyeing a spring 2023 rollout for the new entity, in whatever form it takes. HBO Max was, at launch, the most expensive streaming offering in the US market, so the three-year price freeze has simply brought it into line with other streaming services- Netflix, for example, has its premium tier set at $15.45 currently.

And let’s be brutal- the new company has some serious financial hurdles to clear. With the merger, theoretically at least, creating a stronger product offering, a price hike is not that unreasonable. Nor have they seen much of a ‘trade down’ to the ad-supported tier from existing subscribers, suggesting their offerings are still seen as worthwhile. 

For now, the predicted increase seems to be only for the ad-supported tier. Will expecting watchers to front a higher ad load for that increased cost sit well with them, however? The company clearly sees it as a revenue-boosting opportunity. Whether subscribers agree will, for now at least, have to remain to be seen.

As a smaller player in the streaming pond, Peacock has also struck out for a more holistic model than many of the key players. Instead, parent company NBCUniversal has made much of its intent to leverage the streaming service as part of their overall business, selling advertising and managing it as one with their other arms. It puts the service in a strange place overall- and now it seems they’re not all that interested in market feedback, either. An interesting statement, indeed! Blake & Wang P.A entertainment lawyer Los Angeles, Brandon Blake, looks at the matter in detail.

Comcast Shares Rise

As a flurry of Q3 results are released, Comcast has managed to do pretty solidly, and the news saw their share price inch up by 6% overall despite their $8.6M write-downs regarding Sky. Their movie (and, notably, parks) divisions were top performers for them this quarter. Peacock is also now sitting at around 30 M monthly active users, divided across their premium and free tiers. However, its operating losses widened for the quarter, too, despite attempts to put a very positive spin on the matter. We’ve also seen their year-spanning efforts to integrate Xfinity TV with streaming finally pay off.

Yet we still have to wonder how well a public announcement that they are “somewhat indifferent to what the consumer prefers” will be taken overall. Their goals for the streamer have been stated as to maximize their returns on their content, and a more straightforward return on investment, with NBCU now also “fairly indifferent” to whether their content airs on Peacock or via their linear TV service.

While Peacock’s different approach to streaming has paid off for it over the last year, one does have to wonder if such indifference across the board is really called for. An integrated content strategy is one thing. Being so openly dismissive of wider market trends, however, seems entirely different. Will such boldness pay off for them? For now, that remains to be seen- but they will need to patch that operating loss up fast to achieve it.

When it comes to occupying news headlines, we’ve seen a lot from Netflix recently- and not all of it positive. Despite the strong interest in its soon-to-launch advertising tier, its inability to up its subscriber numbers in 2022 has remained a sticking point for its stock and investors alike. Finally, we see some positive upward movement. Our entertainment lawyer and industry expert, Brandon Blake from Blake & Wang P.A, unpacks the figures. 

A Major Turnaround

The third quarter sees Netflix add 2.4M subscribers to their pool, the first upward tick of the year. This brings its total to a little over 223 M subscribers. Additionally, they are projecting further upward growth of 4.5M for the fourth quarter.

Of these gains, we see 100,000 from the domestic market, 310,000 from Latin America, and more impressive gains from the EMEA region (570,000) and Asia-Pacific (1.4M). No doubt much of the Q4 growth is anticipated on the back of their ad-supported tier launch later this year.

To add to the subscriber numbers, we have Q3 revenue of $7.92B, a slight reduction on Q2, but still a solid 5.9% year-on-year rise.

The Need for More Momentum

Despite this swing back to positivity, even Netflix co-CEO Reed Hastings has admitted that the company needs to boost its momentum for future growth. The company’s lost subscriber base in Q1 and Q2 led to a spate of layoffs, a pullback in content spending, and a dismal stock price. For now, most growth hopes appear to be pinned on the Q4 launch of their ad-supported tier, which will launch at $6.99. This November launch will pip Disney’s entry into the same market by a month. They also will continue with their disputed crack down on account sharing, although recent developments will allow people to transfer their profiles to new accounts to ease some of the sour feelings around this decision.

2022 has definitely been an interesting year for the intrusion of private equity and capital investment firms into the wider entertainment landscape. With Hackman Capital Partners now investing in the global studio space in a big way, it’s an interesting landscape indeed. Blake & Wang P.A entertainment lawyer, Brandon Blake, takes a look at this boom.

$1.6B in Investment

Already a recognized name behind many of the iconic studio properties domestically, this week we saw them announce that their initial target of $1B in the HCP Studio Fund had been surpassed. The fund itself closed at $1.4B, with a further $200M in co-investment capital commitments factored into the wider space. Investing entities vary from private equity and global sovereign wealth funds to foundations, family offices, insurance companies, and even some corporate and public pensions. These are, of course, institutions well known for looking for solid niche asset classes to help grow wealth.

The Soundstage Spree

The demand for quality production space is certainly at a premium currently, with demand faroutstripping supply. Even as we’ve seen some streamers ratchet back production volume this year, there’s still significant need for ‘homes’ in key production hubs. Coupled with longer leases becoming the norm, it’s an interesting rise in demand.

As of Q2 this year, the fund is said to be about 50% allocated to investment, across 7 key projects. This still leaves it plenty of space for further investment potential. This also brings Hackman’s portfolio up to 18 studio properties, with 90 sound stages in development and 120 actively working. Most of these are in North America, Ireland, and the UK.

With the demand for solid and reliable shooting venues and soundstages still growing, it’s an interesting example of the widening globalization of the entertainment market, as well as the steep increase in demand for continuous content development in the entertainment industry.

Of all things to topple Thor: Love and Thunder from its No 1 spot on Nielsen’s streaming charts, few were likely to be betting on Cobra Kai. However, of broader interest to the entertainment landscape will doubtless be the surge past the 1B minutes of viewing marker for 4 separate services revealed by Nielsen’s early-September data. Blake & Wang P.A entertainment lawyer, Brandon Blake, shares the data.

Karate Kid Takes the Lead

Now in its fifth season, the Netflix reboot of the nostalgia-laced Karate Kid franchise managed to pull in 1.7B viewing minutes across the 50 episodes available to stream. The franchise, which started on YouTube Originals before its shift to Netflix, is still drawing the bulk (35%) of its viewers from the nostalgia-hungry Gen X audience who enjoyed the original films, but has also made strides in the 18-34 demographic, now comprising 20% of viewers.

Cracking 1B

Nor was this the only title on the list to make it over the 1B minutes threshold. Thor: Love and Thunder, now on offer as a no-charge title on Disney+, earned itself 1.5B. This should add nicely to the $760M worldwide gross it brought to the table despite fierce competition from Jurassic World: Dominion and Thor: Love and Thunder. Disney’s Pinocchio, released as bait for their Disney Plus Day promotions, missed the 1B mark, but only just- pulling in 930M minutes and taking the 6th spot on Nielsen’s list.

Amazon Prime’s The Lord of the Rings: The Rings of Power took the 4th spot and 1.2B viewing minutes. Keeping the fantasy flag flying high, HBO Max’s House of the Dragon settles into 5th with just over 1B minutes. The Game of Thrones prequel series has seen huge traction for HBO, as well as boosting the older series a juicy 30% in viewership, creating an ironic situation where the prequel and original are directly competing with each other as top performers for the platform.

Nielsen, of course, only records views through TV screens in the US, so viewing minutes globally and via other services will have been much higher for all of the Top 5. Overall, it’s an exciting milestone to see on the reinvigorated Nielsen rankings, and speaks to good things for the wider entertainment world.