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!

The Golden Globes Takes A Knock

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

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.

Historic Win For The WGA Could Alter How Agencies Do Business

Just this week we have seen the final holdout, WME, agree to the WGA’s proposed working terms. Aimed to address both packaging fees and the commercial interest of talent agencies in production companies, this historic (and long-drawn-out) dispute/agreement returns the agency industry to a place it has not been for decades- and could have intriguing knock-on effects down the line. BLAKE & WANG P.A entertainment lawyer San Francisco analyze the situation.

It’s possible that the DGA’s recent coming-out in favor of the WGA argument was an influencing party in WME finally dropping its antitrust suit and returning to the negotiation table with the WGA. Or perhaps the argument and court posturing have simply run their course, with even the courts suggesting they would prefer to see mediation over litigation. With both threatened court actions finally put to bed and a productive agreement reached, this represents the culmination of an action begun in the far-back mists of April 2018. While it’s been frighteningly close to 3 years coming, now it has finally arrived, what does this mean for the talent agency industry as a whole?

Firstly, we return to a 10% commission structure that hasn’t been in play for many years. As was always the intent behind the WGA’s campaign, they wish for writer’s agents to ‘only make money when (their) client does.’ With the juicy allure of packaging fees and incentives created by owning in-house production entities gone, it will certainly be a different world for talent and the agencies that represent them.

Hopefully, we will also see relations between the WGA and the Association of Talent Agents return to normal. The forerunners for WGA ire in April 2018, the ATA refused to negotiate with the WGA, which in turn led to the individual agreements reached between agencies and the WGA. We may even see SAG-AFTRA, who haven’t dealt with the ATA since a similar, earlier, dispute, return to the table with them.

It’s not rare for strikes and disputes to have a long-term impact on the industry, of course. Yet this is a major defanging of some critical conflicts of interest in the industry, and will undoubtedly have a profound impact on things to come. BLAKE & WANG P.A entertainment lawyer San Francisco will be watching carefully.

Brandon Blake– Managing Director Blake & Wang P.A.- Entertainment Attorney

What do the new award season nominees suggest for the Oscars ahead?

This is a difficult year to be an Academy member. With no chance for peer-to-peer social interaction, a broad and unusual field heavily influenced by the blockbusters we didn’t get in 2020, and a fast-approaching nomination deadline, there’s none of the usual clarity on Oscar contenders we’d usually see. So what do the latest nominees and winners from other awards suggest we may see gain an Oscar nomination too? BLAKE & WANG P.A went looking for clues.
Entertainment Lawyers

Currently, only the Trial of the Chicago 7 and Nomadland appear as any kind of widely floated can’t-miss. Apart from them, however, it’s up in the air. Other awards nominations have suggested some firm directions to look. Spike Lee’s Da 5 Bloods has made it back to the spotlight with some attention from the AFI and NBR awards. Netflix’s Ma Rainey’s Black Bottom certainly seems to have pulling power, too.

Amazon’s Sound of Metal and A24’s Minari would have been relegated to ‘arthouse’ in other years, but they’ve seen intense attention this year, and now have a spot on the AFI list to call their own- even over big-budget titles AFI usually would choose. The Spirit Awards have also showered Minari with love, and both have got acknowledgment from the NBR.

Another shining indie, Miss Juneteenth, seems set to stun, harvesting Spirit, Gotham, and NBR awards. Focus’ Never Rarely Sometimes Always starred in the Spirit Award nominations, and got some NBR love too. So have A24’s First Cow and Pixar’s Soul.

While Focus’ Promising Young Woman was expected to do well with the AFI’s list and Spirit both, it missed out a little. Netflix’s The Midnight Sky and Hulu’s Palm got none of the anticipated attention, either. Several anticipated films- Warners’ Tenet and The Way Back, Amazon’s Borat Subsequent Moviefilm, Hulu’s The United States vs. Billie Holiday, and others were nowhere to be seen.

It’s an interesting look at how the Oscar nominations could go, for sure, and will probably focus critical attention on some unexpected films. All the same, there are still more awards to go, and everything remains up in the air for now. BLAKE & WANG P.A will be keeping a careful eye on the situation.

Brandon Blake is the managing partner at BLAKE & WANG P.A.- Contact for more details.

What are the differences between the Oscars and the SAG Awards?

The Screen Actors Guild Awards, or SAG awards, are seen as a critical step in the campaign to earn an Oscar. How did this perceived milestone come to be, and why is one ceremony so influential on the other? BLAKE & WANG P.A Entertainment Lawyer San Francisco takes a look.

The SAG awards are different from the Oscars in one key area- they also look at the TV industry. There’s 2 separate nominating committees each year, one for the TV side of the industry and the other for film. 2500 random active members of the guild are chosen for each. All will be actors, and each can only serve once in every eight years. They choose the nominees, but after that have little active say in the winner. That is decided by all eligible voting members.

That’s a little different from the Oscars, where nominations come from those who work in the same industry as the category. So directors nominate Best Director, and so on. Anyone can nominate for Best Picture. Again, once nominations are complete, anyone eligible may vote.

The Screen Actors Guild Awards have been seen as the go-to barometer for Oscar Campaigns in the coveted Best Acting and Best Picture categories since they first started back in 1994. That said, they also have something of a reputation as a place for Hollywood to nominate golden-age actors who missed out on Oscar fame in their prime. For this season, we could see Sophie Loren’s performance in The Life Ahead and Bill Murray for On the Rocks get some recognition from that very same nostalgia.

With the 2020 film year having been so disruptive, it’s nice to be able to say that the SAG Awards voting opened on January 11th, giving a pleasant sense of normalcy to the tumultuous industry. It will be interesting to see who receives this critical nod on their Oscar journeys, and BLAKE & WANG will be monitoring closely.

Other side-effects of the proposed COVID-19 bail-out for the entertainment industry

Just this week we’ve finally seen some signs of the long-hoped-for bail-out package for businesses struggling in the wake of the pandemic-caused economic recession. News that the bill has passed the senate, and has just to head to the President’s desk for final signing, is certainly positive. Yet- slightly oddly- the bill itself goes far beyond actual COVID-19 relief. BLAKE & WANG P.A best entertainment lawyers in Los Angeles have the details you need.

Odd inclusions

For example, the bill includes a measure making illegal streaming services a felony. Likewise, there will now be a ‘small claims panel’ to weigh in on disputed copyright claims. Whether or not you feel these things are necessary, they seem like strange additions to a much-needed bill that’s supposed to focus on being a lifeline to decimated sectors of industries like the entertainment industry.

Much good news

Despite the oddities, however, the passing of the bill is certain to bring relief to many in the entertainment industry. Alongside expansions to Save our Stages and a direct employee retention scheme, the bill also caters for a federal tax incentive for TV/movie productions. Productions will be able to write off $15 million of expenses in the year incurred, rather than as depreciation, and it has been extended to 2025. As such incentives are typically rolled out year-on-year, that’s exciting in itself. There’s also loans for local media to provide a paycheck protection program under key circumstances.

Alongside the provisions directed at the entertainment industry specifically, we also see exciting extensions to the unemployment insurance fund that will impact those working in the entertainment industry, a direct stimulus, rent payment assistance, propositions to increase broadband access, and a PSA campaign focusing on promoting confidence in the COVID-19 vaccine.

Overall, the news is overwhelmingly positive. We can only hope the bill rolls into full legislation soon.

How we progressed through the year of COVID-19, according to our Netflix accounts

With social isolation being the predominant theme of 2020, there was a concurrent spike in demand for streaming services. As a bit of festive fun from BLAKE & WANG P.A Entertainment Lawyer Los Angeles, we’re taking a look at what shows trended when during this tumultuous year of lockdowns, restrictions, and more- and what it says about ourselves as a whole, too.

Firstly, and as a positive, Netflix would see a boom in foreign-language dramas throughout the year as it opened itself to a wider subscriber base. This was accessed by viewers willing to use subtitles as well as native speakers. Romance and action would also remain key parts of the 2020 landscape no matter what happened- indicative, perhaps, of an urge to escape a lonely year with something escapist.

A very surprising boom would come at the start, however- baking shows! Perhaps accompanying the social media ‘banana bread’ challenge (or causing it), many anchor programs revolving around the soothing art of creating comfort food would see an uptick- well over 50% extra demand!

The euphoria would not last long, however. As lockdown stretched into April and beyond, we would instead see a 30% uptick in demand for sad content and tearjerkers, alongside a greater interest in true crime documentaries and, of course, the phenomenon that was Tiger King. Alongside it would come a demand for stand-up comedy in all its forms. Dating shows and other ‘fluffy’ unscripted reality would also stay strong throughout the year.

In a move that can be seen as positive for humanity as a whole, in the three weeks following the controversial murder of Geroge Floyd, there was a peak in demand for content focusing on the experiences of people of color. This would be the push behind Netflix’s launch of their Black Lives Matter collection.

All in all, it’s a telling look into the mood of a year that’s been like no other, especially for the entertainment industry. The trends we see here will doubtless shape the 2021 orders Netflix places, which means it could also be an interesting knock-on effect for the industry as a whole. BLAKE & WANG P.A will continue to watch (pun intended) with interest.

With red carpets rolled up, how will the Oscar votes be decided in 2020?

The year-end Awards season, culminating in the Oscars, is usually an occasion for glitz, glamour and many cocktails sipped on red carpets. With the disaster that 2020 has wrought on many aspects of the entertainment industry, however, the usual ‘wow’ factor in-person events have been packed away ‘til next season. That doesn’t mean the Oscars won’t be going ahead, however, leaving those with films in the running an interesting conundrum or two to solve. BLAKE & WANG P.A Entertainment Lawyer takes a closer look.

Perhaps the most pressing question in the industry currently is, ‘How will I get them to see my film at all?’ Most typical Oscar season campaigning is designed to lure bums-on-seats for the big screen. This year, with even the Award ceremony itself going digital, contenders have to face the fact that their films will be viewed on laptops and home systems, no doubt to be paused frequently and competing with smartphones, snacks, and other distractions. So much of a successful Oscar campaign hinges on getting people to watch the film at all, and preferably in a situation as close to the director’s ideal as possible. A laptop screen just isn’t that.

Nor has this been the ideal year to generate hype or snag pop-culture prominence for your movie. People are burned out by the pandemic, more interested in bingeing something light from Netflix than engaging with complex commentary with a movie. It’s a year where Box Office hits were postponed, little of ‘blockbuster’ status produced, and movies play very much second fiddle to other, more corporeal worries for most. Those who do have contenders have to keep interest in their movies alive until April, too, meaning even the festive season won’t create much momentum for them. Last year saw ‘Parasite’, the first non-English Best Picture winner, take the title through social media hype. Many more will inevitably win through online campaigns this year. How will these be managed, however, is the real question, and it will be interesting to see what contenders bring to the table. BLAKE & WANG P.A, as always, will be here to keep you clued in on new developments.

Will changes to the ‘Best Picture’ qualifying criteria make actual change in the industry?

With new changes tabled as to how the American Motion Picture Academy determines if a production qualifies for Best Picture, opinions are divided. Today BLAKE & WANG P.A takes a look at some of the key issues.

Have the changes gone over well?

To date, the only fair description is ‘mixed’. This would possibly have gone better if the new changes weren’t leaving people completely confused about when and where they apply. Of course, not every AMPAS voter has actually given the matter the thought it needs- some have just seen the word ‘diversity’ and let a knee-jerk reaction take over. Some have catastrophized that dream projects and creativity will grind to a halt. Others have taken the time to look at the matter in depth. While many are still considering all implications, it seems they’re viewing the changes with optimism for the industry.

In short, it’s probably too early to tell. Once the immediate feelings of excessive control and ‘false diversity’ have settled, however, cooler heads are likely to see this as an overall positive move forward for the film industry as a whole and the Academy and Oscars in particular.

Will these new regulations make a difference?

There’s no way we can tell at the moment. It’s certainly good that we’re seeing some movement towards these goals, and the intentions are excellent. It’s a forward-looking strategy that not only attempts to address diversity, but also ‘future-proof’ the Oscars to stay relevant as times (and audiences) change.

Nor are the changes just about race. Women, for example, and the LGBTQ+ community have been drastically underrepresented in both the industry and the awards ceremony, and the ‘underrepresented communities’ part of these rules seeks to address this. It’s difficult to know how to reach into the systemic societal mess around these issues and create change, but at least this is trying to make a difference.

There will be no real indication of what wider effects this new ruling has until we’ve seen it in action. With the changes not due to go into effect until the 2024 Oscar season, it will be a while before we fully understand how this pans out. In the meantime, it seems like an interesting step forward.

Georgia’s studios banking on filming returning to the state, but the tax incentive under pressure

On the back of news of Fayette County’s Pinewood Atlanta Studios surprise rebranding, studios are confident business will be returning to the area. Trilith Studios, as the site will now be renamed, will be focusing on a mixed-use model, retaining the 1,400 homes and 60 on-site businesses already. As we’ve noted before, Georgia has been pushing since May to get the film industry reopened within the state, and both studios and local government seem confident that the increase in filming in the area will continue to boost the state economy. What’s the attraction? A 2005 tax incentive program that allows up to 30% tax credit if more than half a million was spent in the state and the peach logo is included in the work. Despite its popularity among producers, It hasn’t been without its detractors, who suggest it’s generated less economic impact than hoped. It’s also been suggested that some projects have claimed tax credits through fraud. It’s also become a talking point now COVID-19 has impacted state budgets so heavily.

Despite introducing new restrictions to iron out these issues as of January, the state has remained very film-friendly, pushing the idea that entertainment production will be a backbone of the state’s post-COVID recovery. Georgia’s been able to open up early in comparison to more well-known filming locals, and this is enabling them to make bank off of Hollywood projects looking for a place they can get down to businesses.

Hollywood’s unions have already created a framework agreement with film studios on what constitutes adequate safety on set, including strict testing protocols, and Georgian studios have taken care to comply, adding safety protocols of their own too.

Overall, the state of the entertainment production industry in Georgia is looking positive and set to grow, perhaps fulfilling the predictions that it will be a key part of stimulating the rest of their economy, too.

Blake & Wang P.A.

Blake & Wang P.A is an entertainment attorney assisting media related businesses and resolve their taxation matters professionally. Blake & Wang P.A is always the best choice for the media industry in licensing, contracting and taxation.