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New Projects - Vaccine Mandates - Disney Release Schedules - Production News

By Sean Gregory, August 03, 2021

Where is the time going? Seems like not that long ago we were celebrating the first day of June and the start of a big, exciting summer ahead. I guess time has a way of getting away from us, regardless of how hard we try to sit and savor it. I hope everyone has been enjoying their time to recharge a bit here as the industry dips down for a few weeks of summer recess; August is typically a slower month as production takes a holiday and everyone resets for the busy fall season. All the same, there's still plenty to chat about from the past week, so let's get to it!

Peace & Love ✌️

Disney's BLACK WIDOW Debacle Sends Mixed Signals to Industry

It seems that the tide may be starting to turn on the major streamers' confusing and often questionable release strategies for movies in 2021, as BLACK WIDOW star Scarlett Johansson hit Disney with a lawsuit last week over its dual theatrical & Disney+ debut of the latest Marvel flick. "Disney intentionally induced Marvel’s breach of the agreement, without justification, in order to prevent Ms. Johansson from realizing the full benefit of her bargain with Marvel," Johansson's legal team wrote in their suit, alleging that their calls to renegotiate her contract after discovering the company's day-and-date strategy went unanswered by execs at Marvel and Disney.

The House of Mouse has since responded to the claim, calling it a "callous disregard for the horrific and prolonged global effects of the COVID-19 pandemic" and noting that the film's availability on Disney+ "significantly enhanced her ability to earn additional compensation." Industry advocates were quick to pick up on the implicit double standard that Disney has set for Johansson's filing. "[W]e stand firmly against Disney’s recent statement which attempts to characterize Johansson as insensitive or selfish for defending her contractual business rights," Time's Up, ReFrame and Women in Film said in a joint statement. "This gendered character attack has no place in a business dispute and contributes to an environment in which women and girls are perceived as less able than men to protect their own interests without facing ad hominem criticism."

BLACK WIDOW is just one symptom of the much larger day-and-date disease, which a growing number of analysts feel may be leading the industry down a path of no return. "The availability of many movies outside the exclusive traditional theatrical window provides traditional moviegoers a new option that is likely cannibalizing movie theater attendance," MoffettNathanson's Robert Fishman wrote. As this dual release strategy becomes more common and consistently siphons off more and more money from theatrical releases, distributors may opt to just move their films directly to the consistent return of a streaming service, skipping a theatrical window altogether. While the emergence of the Delta variant is undoubtedly to blame for a portion of the across-the-board downturn in box office revenues in 2021, Fishman argues that it is still up to mammoth companies like Netflix and Disney to set a sustainable precedent for theatrical releases moving forward.

IMAX CEO Rich Gelfond seems less worried about where the future of movie-going is headed. "I think when [Disney CEO Bob Chapek] looks at his data and the pandemic is in the rearview mirror that he’ll come to the same conclusion that everyone else does: The way to maximize value is to have a theatrical window." While Gelfond concedes that the 68% drop in revenue for BLACK WIDOW's second weekend was surprising, the combination of PVOD and an alarming uptick in piracy of the movie is just as much to blame as COVID keeping viewers out of theaters.

All eyes turned to the box office this past weekend, as Disney's latest release - JUNGLE CRUISE - coupled with A24's THE GREEN KNIGHT and Focus' STILLWATER for one of the more highly anticipated release weekends so far this year. JUNGLE CRUISE pulled in an estimated $61.8 million in gross sales, along with what Disney is reporting as "over $30M" from its day-and-date release on Disney+. It will be interesting to see where CRUISE numbers land on its second weekend, but the strong box office numbers are hopeful signs for theater owners that PVOD hasn't completely taken hold of viewership in the US 🎥

COVID Updates

SAG-AFTRA shared a promising jobs report last week, announcing that the union's members racked up $1.5 billion in income in the first four months of 2021, pairing with an impressive 319,000 jobs during the span. Both figures stand as records for their respective categories during comparable time periods, signaling a hopeful shift in the landscape for actors as the industry continues to find its footing in a vaccinated world. SAG-AFTRA's national executive director Duncan Crabtree-Ireland praised the efficacy of the union's return-to-work protocols, reminding everyone to stay vigilant on their projects in the coming months and "not [become] complacent about the virus because it is those very protections that will allow our members to continue to work in the pandemic environment."

The reminder comes at a time when COVID is still very much a looming factor in making or breaking production schedules across the globe. Just two days after SAG-AFTRA's robust jobs report, virus outbreaks were reported at three different production sites in LA, prompting some production companies to make good on Hollywood's new return-to-work protocols and implement vaccine mandates for on-set workers. Netflix has moved forward with its vaccine requirements for all Zone A members on its US productions, with Disney announcing a similar mandate for all salaried and non-union employees. Netflix is said to be considering extending the Zone A vaccinate mandate to its UK-based productions, exploring additional conversations with the British unions after several high-profile shoots in the UK were halted after COVID outbreaks in the last few weeks.

A Whole New (Vaccinated) World

Actors Equity continued its trend of big announcements last week, revealing that a new agreement with the Broadway League will require all cast members to receive the vaccine prior to returning to work. A day later, the League announced that all audience members will also be required to show proof of vaccination to enter a Broadway theater through at least October 31st. Both agreements come with exemptions for medical conditions or religious beliefs, which will be left up to producers for any cast members and will require proof of a negative PCR test within 72 hours of the performance for audience members.

Other theaters not covered by these latest agreements are rapidly following suit: The Hollywood Pantages Theatre and Broadway in Hollywood will both require proof of vaccination through at least October 10th, and will reassess at that point if the mandate will remain in place. New World Stages in NYC will also step in line with the Broadway vaccine requirement through at least October 31st, with all cast, crew, house staff, and audience members required to be jabbed before returning to the venue.

While New York and LA theaters lay out their plans for keeping theatregoers safe, it's worth noting that the safety protocols may only be doing so much to sway public opinion on getting butts back in seats. A survey of over 500 Washington D.C. residents found that only 30% of participants felt "very likely" to attend a Broadway show by October, with the numbers not hitting the 50% mark until May of next year. While the survey was conducted prior to the vaccine mandate instituted last week, survey director Cara Wilken felt that the results "should be seen as a caution to producers for quickly rebuilding Broadway visitor traffic."

Production At Home & Abroad

A new sound stage is set to break ground in the San Fernando Valley, becoming one of the first sites to benefit from California's robust $150 million tax credit bill meant to entice productions back to the Golden State. A joint venture between Hudson Pacific Properties and Blackstone, the Sunset Glenoaks complex is set to be completed in the next two years, after a seven-year delay from complaints from the city and drawn-out litigation. Productions that will eventually shoot at the facility are also expected to qualify for the state's tax credits - regardless of the studio initially being approved for construction in 2015 - which the state hopes will keep projects from fleeing to other film and TV hotspots in the country.

The UK government's lifeline to film and TV over the past year has supported an impressive 640 projects since its inception late last July, allowing the productions to move forward under the country's strict COVID protocols and still churn out hundreds of new films and seasons of shows. The Film and TV Production Restart Scheme dolled out nearly $2.6 billion in grants and credits to any participating productions that were left out in the dark from regular insurance companies who declined underwriting productions faced with delays from COVID suspensions and shutdowns. Findings from the British film institute found that the Restart Scheme, which has been extended until December, is responsible for saving some 55,000 jobs in the industry.

Follow the Money

Several major production companies and studios are reporting encouraging signs of life from their Q2 bottom line, signaling what will hopefully be a steady uptick in production in the months ahead. NBCUniversal enjoyed a 20% climb in total revenue, even considering $363 million loss from fledgling streaming service Peacock, which the company has long been stealing itself for and claims to have expected the platform to lose money at the jump before gaining it back in the years to come. Across the pond, UK broadcaster ITV posted a 26% jump in total revenue in the first half of 2021, with Comcast-backed Sky total revenues increasing 28%, though the company continues to slowly lose out on viewership as the departure from Comcast platforms worsens across the globe.

Aftermath of WGA Spat with Agencies

The Writers Guild of America dropped more than $4.6 million in legal fees during its two-year fight with the top Hollywood agencies that finally wrapped up in winter 2021. The agreement between the WGA and the agencies will eliminate packaging fees by next June, as well as limit agencies and their owners from claiming more than a 20% stake in distribution or production companies. The move is meant to combat implicit bias of agencies favoring their own interests over those of the clients they represent, one of the main inciting incidents that led to more than 7,000 writers dropping their agents in the early days of the lawsuit.

WGA officials issued a recommendation for all on-site members of writers rooms to be fully vaccinated before returning to work in person, while still advocating for remote work to be considered a viable alternative, given the rise of the Delta variant across the US. "We don’t think willingness to participate in an in-person writers room should be a condition of employment at this time," the WGA wrote in a statement, after a survey of WGA East members currently working on streaming and TV shows.

Emmys, Festivals, and More

The 2021 Emmys will officially require proof of vaccination in order to attend their September event. The announcement comes alongside the Television Academy's unveiling of this year's full Creative Arts and Primetime schedule, which will include a condensed broadcast for the Creative Arts Emmys - which honors the behind-the-scenes and technical aspects of television production - ahead of the Primetime Emmys, held Sunday evening, September 19th. The Academy will also forgo the Governor's Ball after the show, electing to stick with hosting smaller gatherings for nominees in different categories in the week leading up to the ceremony.

Variety is all set for this year's awards - check out their newsletter on the top shows you need to watch before the winners are announced, how the fields are different than in years past, and much more!

Toronto International Film Festival revealed its slate for the Contemporary World Cinema and Discovery programs at this year's fest, along with the announcement of TIFF Rewind, a new event that will highlight films from previous years at TIFF and will feature Q&A's with various cast and crew members. Festivals are back! 🎉

The other TIFF - Transilvania International Film Festival (did anyone else not know there was more than one TIFF...) - is also making waves with the announcement of a new segment aimed at honoring top-tier TV series, a move meant to honor the growing number of high-end TV content coming out of Europe in recent years. "The content is really surprising and good," TIFF founder Tudor Giurgiu said. "We are encouraging both producers and writers to learn and understand the mechanics of doing TV series and miniseries." The festival also launched the Drama Room, a three-day event aimed at professionals in Central and Eastern Europe who are interested in developing their own series.

Diversity, Equity & Inclusion

A new Nielsen report released last week found that representation for characters with disabilities is still lagging far behind the curve, with films accounting for 65% of content with disabled representation, and regular TV series accounting for just 16% of the 3,000 titles surveyed. The report, sponsored by nonprofit RespectAbility and landing on the 31st anniversary of the Americans with Disabilities Act, also found that while the presence of characters with disabilities did increase 175% in the last decade, the majority of the roles were still played by actors who did not have the depicted disabilities. "When disability is a part of a character’s story, too often content can position people with disabilities as someone to pity or someone to cure, instead of portraying disabled individuals as full members of our society," VP of RespectAbility Lauren Appelbaum said.

The African American Film Critics Association is set to honor its newest pool of winners at this year's AAFCA TV Honors on August 21st. Barry Jenkins, Jonathan Majors, and Journee Smollett are just a few of this year's honorees, who will be recognized for their excellence in storytelling within the Black community. "[W]e are most hopeful that the vast array of offerings this year point to a permanent shift in the quality and depth of storytelling capturing the Black experience on television," AAFCA co-founder and President Gil Robertson said.

While gains in onscreen diversity continue to make their mark in the industry, progress behind the camera, in writers rooms, and at the highest levels of industry leadership continue to remain stagnant. A UCLA Hollywood Diversity study from last October found that just 10.3% of show creators for digital programs came from diverse backgrounds, with broadcast standing at 10.7% and cable at 14.7%. IndieWire has compiled a list of scripted series overseen or created by artists from underrepresented communities on top streaming and cable platforms - pick a few out and get started!

Sundance Institute has announced the recipients of its inaugural Uprise Grant Fund, which seeks to support the work of artists from underrepresented communities affected during the pandemic. 38 individuals were selected from across the film, theatre, and media industries in the US, earning up to $5,000 in grants for developing their projects moving forward.

Quick Bites

Manhattan's Paris Theater will open its doors once again this Friday after a rocky two years of ownership exchanges and COVID closures. Now owned outright by Netflix, the single-screen, 545-seat theater will premiere Radha Blank's THE FORTY-YEAR-OLD VERSION, along with a week of films curated by Blank herself 🍿

NYC movie lovers! Bryant Park Movie Nights are back and better than ever 😍 Films will show at the park Monday and Tuesday evenings from August 23rd through September 28th, featuring classics like THE MUPPETS TAKE MANHATTAN, MOULIN ROUGE, and MRS. DOUBTFIRE. Gotta say, I'm pretty excited.... Endless MRS. DOUBTFIRE quotes are in my future 👵🏻

Safe to say we could all use a little humor in our lives these days. Variety's latest Comedy Impact Report celebrated 35 comics who kept the jokes flowing over the past year and helped us get through this weirdo time with a little levity 🙌

Variety must really think we needed a laugh last week 👀 They also released their 10 Comics to Watch list for 2021, an annual compilation that has previously included Kumail Nanjiani, Amy Schumer, and Wanda Sykes. This year's honorees participated in a virtual panel at the Just for Laughs Comedy Festival in Montreal. Check them out!

The latest NYPopsUp event set to take place at Little Island in NYC starting August 11th will feature over 450 performers in a month-long festival showcasing top dance, comedy, and music talent in the city. NYC Free will welcome names like Broadway's Ali Stroker and SNL's Bowen Yang to venues throughout the park, including the shiny new amphitheater. Yay live performances! 🎶