New Projects - CA Tax Bill On Hold - Changes to Broadcast Programming - Fall Film Festivals
By Abigail Hardin, August 30, 2022
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Happy Tuesday, UTD!
I hope you're enjoying the last week of Summer! 😎ðŸ We're going to be taking next week off from the "Weekly Insight Email" for Labor Day. But look for a full recap the following Tuesday. You will still receive your daily & weekly notifications as usual.
Have a great holiday weekend!
Politics & Production
California Tax Incentive Extension On Hold
There have been many articles in the past few weeks about California's lucrative tax incentive program, however, an extension to the existing program has been put on hold. The state's $330 million tax credit for Hollywood is currently set to expire in 2025. Sen. Anthony Portantino has worked on a bill, SB 485, that would add another five years to the program. Gov. Gavin Newsom announced his support for the tax credit extension earlier this month, and the bill was expected to be approved by the Legislature before the end of the session on August 31.
However, after a new provision was added requiring that productions that receive a tax credit adopt hiring goals that are "broadly reflective" of the state's demographics, Portantino announced in a statement on Thursday the bill would be put on hold until the next session in January. The diversity provision, led by Assemblywoman Wendy Carrillo, D-Los Angeles, would add an extra 4% subsidy for projects that meet their diversity targets.
While the bill is still expected to pass given the Governor's public support, it doesn't seem like great optics and timing for the bill to be stalled in the 11th hour. 🤔
Gun Safety on Set
A bill that would have regulated the use of guns on film and TV sets in California has failed to make it through the state legislature. The DGA and IATSE issued a joint statement expressing their displeasure. "The DGA and IATSE are disappointed and disheartened that this critical legislation, which would have required important safety protections for our members and all workers in our industry, was not passed into law during this legislative session," the unions said. "Unfortunately, we were unable to get the studios to support significant, meaningful, and practical safety reforms that they currently implement in other parts of the world. We remain committed to reforms that protect our members through negotiations with the studios or legislation in California and other states. Those changes require prioritizing safety and allocating resources to make it happen on the ground."
TV News
NBC Giving Up on Primetime
It's no secret, Broadcast television has been in life or death battle for viewers. With streaming hours recently surpassing broadcast for the first time ever, networks are scrambling to reassess and reinvent. The latest idea to be floated around - NBC is considering abandoning the 10 PM primetime slot for local programming. Insiders say that this conversation has happened multiple times over the past 10 years, and emphasize this is not the first time the option of ceding time to affiliates has been discussed at the broadcaster. Instead, this is just the most recent in ongoing explorations and it could lead to no changes at all. Additionally, sources say NBCU is not mulling this as a cost-cutting move that would lead to less programming, but one that might be made to best utilize the broadcast brand and relationship with affiliates vs. its streaming and cable options. hmmmmmm..... 🤔 No matter what they decide, the Fall lineup will not be affected. Any decision on the primetime hour will not go into effect until Fall 2023.
Naturally social media exploded with mostly criticism of what some are saying is the beginning of "Must Cede TV."
The CW: A New Frontier
Nexstar Media Group, is making good on their promise to slowly shift the demographics of the The CW viewership over time. The new parent company is keeping a handful of the teen soaps they are known for, but looking to "broaden [The CW] slate by adding procedurals and other older-skewing dramas as well as half-hour comedies including multi-camera sitcoms." So while NBC (and HBO Max, see below) is looking to trim the content fat, The CW is looking to extend and add variety to the menu.
The True Cost of Streaming
We hear ad-nauseam about how streamers are winning the content war. But lately, more and more reports have come out about not meeting quarterly quotas, slowing growth, and cutting back on content costs. Relative newbie HBO Max recently dropped 36 titles from their content library. The reason, like always, is cost. This op-ed in Variety paints a clear picture as to why this "inventory problem" is not unique to HBO Max, and instead is another "unintended consequence" in the streaming revolution.The article compares streamer's content to retail sales management, "In the retail world, if a product doesn't sell, at some point it comes off the shelf to make room for something new." As actors we fight for residuals, but might not realize how costs can add up for a product no one is watching.
"The bill adds up quickly when the costs of residual fees for actors, writers and directors are included — costs that are triggered no matter how many or how few people cue up a particular episode of a vintage series. There are also producer fees, music licensing fees and myriad other royalties that come into play. Industry sources say the cost varies widely on a title-by-title basis, depending on the underlying deal terms, but there is no version of keeping a show available for viewing on a platform that doesn't incur at least tens of thousands of dollars in fees per series per year. For the lowest-performing 30% of HBO Max's active library, that adds up to tens of millions of dollars a year."
And how fitting is that amidst a content purge and a post-merger financial chokehold, HBO Max is offering a limited-time 30% discount for new and returning customers. 🤑 The move comes as a ploy to lock in customers on an annual plan. Maybe there really is trouble in streaming paradise!
Fall Film Festivals ðŸ‚
Fall Festival Season is back! After two years of virtual and hybrid schedules, Venice, Telluride, the Toronto International Film Festival, and the New York Film Festival are all prepping to launch a full-scale lineup of in-person events in the coming weeks. You don't have to have a ticket to the festival in order to see some of the hottest anticipated films from this year's lineup. Many headliners, such as BLONDE, have already announced public release dates shortly after their festival debuts.
More information on release dates will come as buyers scoop up more acquisitions. Here is a great live-updated list of all Festival acquisitions as they are announced.
📣 Submission: Looking to next year, Tribecca Film Festival will begin taking submissions next month for their 2023 season. The 22nd edition, spotlighting innovations across film, TV, immersive, games, audio storytelling, talks, and more, will take place in New York City from June 7-18, 2023. Applications for entry in the categories of Features, NOW, Immersive and Games can be submitted starting September 19 — with October 26, December 7 and January 18, 2023 respectively serving as the early, official and extended deadlines. Shorts and Audio Storytelling submissions open on October 26 and close on November 30 (early), January 11, 2023 (official), and February 22, 2023 (extended). Read more for information on deadlines, submission rules, regulations, and eligibility.
Movie Theatres
As we covered last week, MoviePass is making a comeback! I guess the crowd excitement was a little too much for their beta software. MoviePass allowed users to begin signing up for its waitlist on Thursday ahead of its fall launch, and the website almost instantly crashed due to a high volume of users. Many fans who visited the website were met with an error message, though the issue was resolved later in the day. As a coder and developer, 👩ðŸ»â€ðŸ’» you always dread a crash and error message, but hey, high volume traffic is always a good problem to have!
While the initial success of MoviePass might herald a mass return to the cinema, the numbers aren't quite there yet. This past week was a painful one for many mega cinema chains, on top of an already barren summer box office. While TOP GUN: MAVERICK showed how a movie playing in theaters can become a sensation that home events can't duplicate, the total Summer domestic box office is expected to come in at $3.35 billion. That's about 77% compared to the summer of pre-Covid 2019. Read more on the contributing factors to this long-COVID effect.
The number continues to look bad for many exhibitors. Last Monday, shares in AMC sank 42% although it seems this move may be one brought on by the company with purpose. Cineworld, the second largest cinema chain in the world is filing for Chapter 11 bankruptcy in the U.S. leaving the future of Regal Cinemas (the London-based company's U.S. cinema brand) very much uncertain.
However, as evidenced by MoviePass, people aren't giving up on the movies anytime soon. The Cinema Foundation (A NATO nonprofit) has announced "National Cinema Day", a one-day industry promotional event next Saturday with $3 movie tickets at over 3,000 theaters/30,000 screens. The event was heralded by big chains but may be a big ask for smaller ones. Big arthouse chains Angelika and Landmark will not be participating. But AMC touted the $3+tax on every show, including Imax and Dolby, and a "discounted fountain drink and popcorn combo." Even teetering Regal Cinemas tweeted about their participation "Tell your friends, grandmother, that one uncle – go ask out that one person, whatever you have to do".
So, if you want to show some good faith in traditional movie watching, head to the theatres on September 3rd and take advantage of $3 movie tickets! ðŸ¿
Diversity / Inclusion
It's not every day that we get to celebrate progress in studios evolving to be more inclusive. LORD OF THE RINGS star Sir Lenny Henry recently applauded the producers for creating a racially diverse cast. The new big-budget Amazon series launches this Friday and Henry discussed how the new series diverts from the original books and Hollywood film's world of primarily fair skinned characters. "That's to do with it being the 21st century; people want to see themselves. Of course, if you go back, there's going to be that thing that prevails because the books don't say . . . although some of the characters are described as hard-skinned and darker in complexion . . . but that was then, this is now and we're telling the story now." 🙌
📣 Submission: The Black List and Google have unveiled the joint creation of the Black List x YouTube Originals Black Voices Creator Fellowship. The inaugural fellowship will provide financial grants and creative support to four television writers who can write exceptionally and authentically about the Black experience, in developing proofs of concept for a television show pitch. "We are thrilled to partner with the Black List on a program that seeks to identify and nurture the next wave of creatives from underrepresented communities. As part of Google's commitment to help build a world where everyone can belong, our team looks forward to providing these talented artists with equitable access to resources that can serve as a key to unlocking a world of opportunity," said DeMira Pierre, Creative Executive, Impact & Racial Justice, YouTube Originals.
In the latest episode of "one step forward, one giant leap backwards," Singapore's government has confirmed that it will continue to restrict LGBTQ film and media content to older audiences, despite overturning a decades-old law that banned gay sex. Singapore Prime Minister Lee Hsien Loong announced that the city-state would be abolishing the 377A law, which bans sex between men. Lee said the move would align Singapore's legal systems with "current social mores, and I hope, provide some relief to gay Singaporeans". However, Lee also said the government would strengthen the laws recognizing the definition of marriage as being between a man and a woman, making it much more difficult for same-sex marriage to be legalized.