Last week, we were able to share the happy news that Sony will be taking over the iconic Alamo Drafthouse cinemas in one of the first studio-theater partnerships we’ve seen in decades. Today there’s some more good news, and our Blake & Wang P.A. entertainment attorney Los Angeles, Brandon Blake, is here to share it. 

Brandon Blake

6 Locations Reopening

In addition to taking control of the main Alamo Drafthouse brand, Sony will also be reopening 6 previously franchise-owned locations. These 6 locations closed under the pressures of the COVID pandemic, as the franchise company was forced into bankruptcy. 

This includes one location in Minnesota and 5 others serving the Dallas-Fort Worth area, which shut down in June this year. The locations should reopen this year in quick succession according to current plans. 

A Positive Buy-Back

It appears that Sony is willing to invest quite heavily in its theatrical game plan with this latest acquisition, as they jumped on the location closures near immediately, buying back the locations and making overtures to those staff members who lost their employment at the venues. 

As each location reopens, there will be “soft” openings in each first week, with select promotions and discounts to drive feet back through the door. Those who missed out on pre-sold tickets during their June shutdown will receive ticket vouchers, and previous concessionary deals (like Deadpool and Wolverine pint glasses) will still be honored. 

Sony’s acquisition of the Alamo was something of a landmark for the industry and one of the first re-entries into studio ownership for the theatrical industry we’ve seen in over half a century. While their final plans for this shiny new acquisition are not yet clear, it is speculated that they could be intending to funnel some of Crunchyroll’s anime offerings to the theaters, or simply that they want a “testing platform” for future releases. Either way, it’s always good to see new life breathed into these iconic parts of the Hollywood landscape.

While many of 2024’s releases to date have been optimistically predicted for $100M plus domestic openings, frighteningly few have delivered— and none since the start of summer. Then along came a happy Pixar picture about emotions, and suddenly we were back to something that feels like business as usual. Blake & Wang P.A. entertainment lawyer Los Angeles, Brandon Blake, sneaks a peek behind the Pixar curtain at why this film, of them all, was different.

Brandon Blake

Critical and Audience Acclaim

In a return to true form that fans of the studio will love, Pixar managed to deliver on 2 fronts with Inside Out 2. Not only did it woo critics, but general audiences, as well. Audience demographics are surprisingly diverse across genders, ages, and ethnicities, too. That’s not the only secret in the film’s bag, however. A huge contributor to Inside Out 2’s success has been a smart and multi-focal marketing campaign from Disney that has managed to resonate with potential viewers in a way no other film this year has. In fact, the easiest parallel to draw is to the (partly unintentional) Barbenheimer hype we saw last summer.

Record Breaking Performance

Not only did Inside Out 2 manage to meet (and blast straight through) that coveted $100M domestic opening for a final total of just over $154M, but it has also added the second-biggest animated launch of all time and the biggest debut since Barbie to the bag. It has been keeping up impressively during the notorious midweek business lulls, and last week took the eighth-biggest Tuesday for any film (and second-biggest for animation) ever, too. Overseas, it started at over $300M, another record among like-for-like markets.

It was a boost the ailing 2024 box office needed, for sure. Between Inside Out 2 and Bad Boys: Ride or Die, we have finally seen a positive uptick in year-to-date revenue and some box office impetus we hope to see grow stronger and stronger throughout the remainder of the year.

Until 2020 and the rescinding of the so-called Paramount Consent Decrees, studios could not own exhibition companies except under certain stringent conditions. With Sony taking over the Alamo Drafthouse Cinema, we see the first deal in 7 decades to put a major Hollywood studio in movie theater ownership. Blake & Wang P.A. entertainment attorney Los Angeles, Brandon Blake, dives into the news and the history behind it. 

Brandon Blake

The Paramount Consent Decrees

First enacted in 1948, the US Department of Justice banned film distributors from owning exhibition companies after a US Supreme Court ruling on the matter. These decrees were, in part, responsible for the dismantling of the older Hollywood studio model.

It was intended to remove some of the studio stranglehold over all aspects of the filmmaking cycle, from production and talent right through to release. However, it was a model designed for an entertainment landscape that no longer exists. In particular, it was designed with single-screen cinemas in mind, not the modern multiplex, where movie screening ‘favoritism’ and long runs are much less likely.

A Groundbreaking Deal for Historic Hollywood

While the Paramount Consent Decrees were relaxed in the 1980s and fully revoked in 2020, Sony’s purchase of the Alamo Drafthouse makes the company the first major Hollywood studio to enter such a deal. Since 2000, only Netflix and Amazon, neither traditional studios, have acquired theaters. In a fun twist, however, AMC Theaters, the world’s largest cinema chain operator, entered the distribution business last year with Taylor Swift’s Eras Tour.

The Alamo itself, an independent cinema chain with 35 locations, went into Chapter 11 bankruptcy in 2021, as a direct result of pandemic disruptions. According to an announcement from Sony early last week, the Alamo CEO, Michael Kustermann, will remain in charge of the chain, as part of a new Sony division he will helm, and the chain will still operate under the Alamo Drafthouse brand.

Let’s hope the rather impressive opening weekend performance of Bad Boys: Ride or Die this past weekend proves to galvanize the summer box office out of its slump. Our Blake & Wang P.A. insider, entertainment lawyer Los Angeles Brandon Blake, finally has some excellent box office news to share. 

Brandon Blake

Outperforming Expectations

With a global opening of $104.6M and a domestic debut of $56M, Bad Boys: Ride or Die has finally delivered a box office release that has outperformed its benchmark expectations. Rather significantly, as it was expected to reach $75M globally and $40M in North America. Notably, that domestic figure was reduced from an original $50M in the wake of a lackluster summer box office, and Sony itself was only expecting $30M+. Hopefully, this also means good things for the upcoming release of Disney/Pixar’s Inside Out 2, as well.

Wide Release

The third installment in the franchise, Bad Boys for Life, hit a franchise-high domestic opening of $62M, in a 3-day weekend that included Martin Luther King Day in 2020. Globally, it hit the $101M mark, so Bad Boys: Ride or Die has surpassed it there. As so-called “fourthquels” often significantly underperform “threequels”, and Bad Boys for Life also benefited from the known phenomenon where long-delayed sequels open well, this strong opening weekend is quite an achievement.

The film is currently open in 3,850 locations across North America and at about 92% of its international footprint. We are still waiting for releases in Malaysia, Italy, China, Japan, Pakistan, and Singapore.

Now, let’s hope that the film can echo Bad Boys for Life one more time, and show similarly strong legs. BB4L managed to clear $400M at the global box office, even as the looming specter of the pandemic closed in, significantly hampering at least its Chinese performance. That’s exactly the kind of far-reaching good news the box office needs right now.

Until recently, it has been easy to dismiss FAST streaming services as something of a cut-rate service, unable to deliver the same content standards and quality as paid streaming subscription services. However, one glance at the accelerating user uptake for services like The Roku Channel, Tubi, and Pluto TV suggests that it may be time to revisit that initial impression. Our expert from Blake & Wang P.A., You could review entertainment lawyer Brandon Blake, shows us why.

Brandon Blake

The FAST Advantage

There’s one thing that FAST streaming has going for it- an amazingly low barrier of entry. Sure, you have to trade that free price tag off against some advertising, but as paid streaming services increasingly push ad-supported models, that no longer seems like much of a disadvantage against that shiny $0 price tag.

At this year’s Upfronts, Fox gave Tubi almost as much stage time as it did its paid services. The FAST platform model is rising in popularity among users. As they typically draw on existing in-house, and occasionally licensed, content libraries, FAST services are cheaper to run, as well as to watch, offer up a large user base that’s appealing to advertisers, and some have even ventured into creating their own originals, too. 

Quality Content, After All

The argument has been, until now, that FAST channels can’t match the quality of content that paid services can. However, the stats suggest otherwise. Tubi has managed to take 1.7% of all TV views in the US in the last month according to Nielsen data, with The Roku Channel taking 1.4%. While that may not seem high, consider that Tubi is only just behind Disney, and Roku has outperformed both Max and Peacock to secure those spots. Pluto, although it only takes 0.8% on Nielsen’s rankings, has managed to be the first FAST service that made it to the Gauge, which again only rates services over 1% of market share.

Tubi has seen a 60% jump in monthly active users over the last year, now with a user base larger than Hulu, Paramount+, or Peacock. The Roku Channel will no doubt see a lot of interest in its recent live sports deals, including an MLB partnership. In short, FAST TV is now focused on high-quality content, and that is driving viewership for them. While they will likely not reach the heights of a major-tier streamer like Netflix on a FAST model alone, the days of dismissing FAST as a “bargain bin” alternative to “real” streaming are clearly at an end. 

It may be the summer holiday season, but the box office has felt a little drab to date, with a somewhat dull May slate that has failed to gain much audience traction. We could see that change as we power into the heart of summer, however, with two potential hits on the table- one already tracking well. Strangely, it’s not the one everyone expected! Look at entertainment attorney from Blake & Wang P.A., Brandon Blake, takes a look at the Memorial Day box office weekend.

Brandon Blake

Furiosa May Deliver the Action May Missed But Is Proving a Hard Sell

Between the inevitable release delays from last year’s strikes and Disney’s stepping-down of their Marvel release schedule, one thing has been notoriously absent in the summer slate so far. A fast-paced, fun, blockbuster romp to act as an action tentpole. Fresh off the back of a high-profile Cannes debut, Furiosa: A Mad Max Saga, could have been just what the box office- and holiday audiences- are craving.

Despite opening to a $3.5M domestic debut for its Thursday previews, however, Furiosa seems to be failing to connect with audiences as anticipated, leaving it at a lackluster $66M global opening weekend. However, with the action and fancy special effects of a blockbuster in place, this could change in the coming weeks as young people on holiday look for a way to pass the time. Let’s not be too hasty to write off a film that performed exceptionally with critics.

Family-Friendly Fat-Cat Fun

The other big opener for Memorial Day weekend was Sony’s The Garfield Movie. With a solid $1.9M in Thursday previews, it was expected to track significantly behind action-packed Furiosa. However, the vagaries of the current moviegoer continue! Instead, Garfield drew level with Furiosa domestically, with an opening in the $30M range, and global takings to date of $91.1M.

What can we say, other than that the modern theater-going audience is a fickle and difficult-to-predict one? However, both films still have immense potential for staying power, and it will be interesting to see who the ultimate victor between them is.

As a deal made this February comes to full fruition, RedBird IMI has finally completed its takeover of the British indie producer and distributor, All3Media. Brandon Blake, entertainment lawyer Los Angeles with Blake & Wang P.A., unpacks the full details of the deal for us.

Brandon Blake

Regulatory Approval Granted

Much of the delay in finalizing the deal can be laid at the door of regulatory approval for the US, UK, and Germany, which has finally been granted. All3Media’s exiting owners are Liberty Global and Warner Bros. Discovery.  The deal closed for $1.45B. 

This makes it RedBird IMI’s largest (single) deal after its launch a little over a year ago, although they have also taken control of several smaller studio entities, including EverWonder Studios, child-focused Hidden Pigeon Company, and Media Res. All3Media, which remains based in London, now owns/operates 50 production labels. They are best known for the long-running hit Call the Midwife, alongside Midsomer Murders, Squid Game: The Challenge, and The Traitors. All3Media International also controls a lucrative library of around 30,000 hours. 

New Chairman in Place

RedBird IMI CEO Jeff Zucker will take up the role of Chairman of All3Media, while Sara Geater (COO) and Jane Turnton (CEO) will continue in their current roles. All3Media was owned by Liberty and Warner Bros Discover for a decade but has been adversely impacted in recent years by the soft UK TV ad market and spending reductions from the major networks. 

However, it remains one of the most glittering British production companies, and the “war” for its new ownership was fierce, with the crown almost going to ITV last year. Although it was strongly predicted that Banijay would take over the reins, RedBird IMI came out the victor. RedBird IMI is, of course, a joint venture between well-known RedBird Capital Partners and International Media Investments.

In news that will surprise absolutely no one who follows what’s trending on the entertainment charts, Amazon’s Fallout TV series, based on the popular video game franchise, has conquered the top spot on Nielsen’s streaming lists in its debut week. Blake & Wang P.A. entertainment lawyer, Brandon Blake, brings us up to date with this streaming sensation and the latest Nielsen news. 

Brandon Blake

Fallout Takes No. 1

In what was, at its core, an Easter egg-packed, fun, and surprisingly faithful adaptation of the popular video game series, Amazon may have found its new hit IP. There’s little wonder that the series, which has managed to both please hardcore game fans and captivate new viewers, was quickly greenlit for future seasons on the back of its immensely successful first run. 

The series tops Nielsen’s streaming charts for its debut week at 2.9B minutes watched in only 5 days, over 1B more than any other entrant from Nielsen’s data. This also surpasses Reacher’s best week (again by over 1B minutes), meaning it is Amazon’s most successful streaming title to date. 

More to Come?

Additionally, most of the viewing minutes (70%) were concentrated on the first four episodes, suggesting this won’t be the last we see of Fallout on Nielsen’s streaming charts. Reportedly, the demographics for its premiere weekend sat at 75% of viewers under 50, 63% of whom were male.

Coming in second this week was Bluey, the beloved kid-focused series from Disney+ that has been a consistent winner for them. In normal weeks, its 1.4B minutes would be more than enough to take it to the top of the charts. It’s followed by the reruns of Grey’s Anatomy, which continues to do well for Fox and Hulu/Netflix, even if it hasn’t quite achieved the astronomic viewership Suits did last year. Vikings squeaks into the No.4 slot, while last week’s top title (The Resident) slid to fifth place to round out our chart summary for this week.

We may not know who will be the final victor, but one thing is abundantly clear at this point- Paramount will be sold this year in some form or another. While it is natural for M&A activity to cause some shake-ups in the C-suite, usually that would wait on the new owner taking over. Not so for the Paramount Group, however, which will see current CEO Bob Bakish depart in favor of a three-person strong joint leadership team (for now). Entertainment attorney Brandon Blake, of Blake & Wang P.A. fills us in on the changes.

Brandon Blake

End of an Era

As of this week, Bakish will officially step down as CEO, although he will remain with the company until the end of October to act in an advisory role. Paramount is currently deep into an exclusive negotiating window with potential buyers Skydance, RedBird Capital, and KKR. If the deal pans out as expected, Paramount would remain a public company, but with the executive leadership purely from Skydance and RedBird. While that deal is not yet official, and there is some noise of a counter-offer from Sony and Apollo Private Equity, this shakeup to their executive suite is an interesting one that may point to a coming deal closure.

Little Comment

The announcement was made with prepared remarks only, and Bakish himself has also been quiet on the sudden shakeup. There is some speculation, however, that he and Paramount’s controlling shareholder, Shari Redstone, may be at odds around the deal. Additionally, Paramount has seen some severe Wall Street turbulence, losing investors amid claims that the Skydance deal, which seems the forerunner currently, serves the interest of the Redstone family and National Amusement’s voting shareholders much more than the regular Paramount shareholders.

Despite these details, Paramount has definitely been underperforming in its potential, and a new owner better positioned to move the group away from the declining linear sectors and make better use of its direct-to-consumer potential may well be what Paramount needs to reinvent itself for a new millennium. It will be interesting, indeed, to see what else develops as we move towards a final deal.

As the wider entertainment space evolves, so must the award shows that celebrate it. The Oscars has announced some new rule changes and updates to its campaign protocols for the next Oscar season. Brandon Blake, from entertainment attorney at Blake & Wang P.A., sums up some of the major changes for us.

Brandon Blake

Oscars and Theaters: A New Love Affair

As always, Oscar-eligible films will need to be released in theaters during the 2024 calendar year. However, drive-in theaters no longer make the grade, and films must screen for at least one week in a brick-and-mortar theater within the usual areas, with Dallas-Fort Worth now making a (somewhat puzzling) addition to the list. Films must now also have an expanded theatrical run of 7 days in 10 of the top 50 domestic markets, not later than 45 days after the initial release and with a hard final deadline of Jan 10, 2025. Late-releasing films will need to verify those release plans with the academy. Non-US releases can be counted for 2 of those 10 markets, provided they are one of the Top 15 international markets and/or the film’s home territory.

Other Key Changes

Animated feature films from foreign countries submitted to the best international feature film category will now be eligible for consideration in the animated category too. The original score category shortlist is extended to 20 titles. More intriguingly, and no doubt in a bid to ward off AI-generated entries, writers competing for the best adapted and original screenplay categories will have to furnish a final shooting script.

There have also been some changes to the special award categories, and two of the Scientific and Technical Awards will be renamed. Alongside these shifts, the Academy also announced its key submission deadlines and dates for the next ceremony, alongside some changes to the campaign promotional regulations for the next Oscar season, clarifying how ‘in-house’ promotion to Academy members can be done.

All in all, most of the announced changes seek to keep the ceremony in line with wider industry changes and shifts, which should be a net positive for all concerned, including competing titles.