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Awards
New Normal, New Rules: Oscar Updates for the 2023 Ceremony
Along with a date for next year’s ceremony, Oscars bosses have updated the rules for qualifying films. When it takes place at the Dolby Theater on March 12, 2023, the 95th Academy Awards will return to normal consideration periods (after amending the theatrical release rule due to the Covid-19 pandemic). Theaters in all six qualifying metropolitan U.S. counties have reopened, and as such, the Academy Screening Room is no longer a viable method for award consideration. Going forward, a theatrical release between January 1, 2022, and December 31, 2022, is required for all film entries, both for features and shorts. Additionally, the titles for the two documentary categories have been updated to “Documentary Feature Film” and “Documentary Short Film.” A new rule has been put into place that limits the number of songs that can be nominated from one film in the Original Song category. Previously, there had been no cap. Now, there is a limit of three nominations per film entry. The final major update involves the sound category, which requires that all nominated films are screened for the Academy’s sound professionals—especially if the movie is set to be released after preliminary voting concludes. Submission deadlines have been posted for all categories, and many see these updates as a sign that Hollywood is finally returning to normal after the past two years of pandemic accommodations.
Industry
The Many Movies of Newark: Production Hub To Be Built in New Jersey
Television content is booming, and Lionsgate has set their sights on building a new studio location to meet this demand. On May 17, it was announced that a new 15-acre lot would be built two miles from Newark Liberty Airport, replacing a currently abandoned public housing site. This 100-million-dollar project, tentatively set to open in March of 2024, will include six soundstages, space for post-production, and additional crew facilities deemed necessary to keep the hub running. Breaking ground on this new studio site is a reflection of of the Garden State’s recent prominence in the entertainment world. Productions have been drawn to the east coast, as it is the the home of top on-screen talent and skilled union labor. Other recently built studios are already completely booked solid, and it is believed that this project could bring at least 600 long-term jobs and business opportunities to New Jersey’s largest city. Despite the recent downturn in streaming subscribers, Robert Halmi Jr., CEO of Great Point Studios, believes that there is still a big need for indoor soundstages like the ones being built. The state also has plans in the works to build three more studios. The rise of production in the area is also due to recently enacted production tax incentives, which brought $441 million into the state economy last year.
Advertising
Data-Rich Streaming: Ad-Supported Platforms Offer New Opportunities for TV Marketers
Several streaming platforms are committed to launching ad-supported packages by the end of 2022, ushering in a wave of change to the TV advertising environment. Ad-supported platforms seem straightforward; if a user agrees to stream commercials, they then pay a lower subscription fee. But this business model is also linking streaming habits with an individual's marketing profile, which gives advertisers more insight into how they can effectively market products and influence viewers. The Interactive Advertising Bureau previously forecasted that TV ad spend for streaming will hit $21.2 billion by the end of 2022. Since then, more services have announced intentions to integrate ads in their platform. The increased advertising will lead to more detailed information tracking, but with that, an increasing number of privacy laws may be proposed to limit data collection. Currently, ad-supported platforms are unrestrained and may not offer simple ways to opt out of tracking. Smart TVs can also track everything a user watches, including content on external streaming sites. According to Ash Gangwar, General Manager for TV Partnerships at the Trade Desk, “It will be a data-rich environment, and it will continue to grow in some cases at the expense of other channels like mobile and display.” Apple has since put into place several anti-tracking rules, which require applications to request permission before tracking a user's data. However, these unregulated streaming platforms will offer valuable data that has been limited elsewhere.
Television
Recession Ahead: Cable Executives Share Top Concerns
As TV upfronts revealed many shakeups in the industry, several top executives shared common worries at an investor’s conference this past Wednesday. The biggest concern they shared is whether or not the business has truly bounced back from the pandemic. Comcast CEO Dave Walton believes that small-to-medium-sized companies may currently be back to normal revenue, though trouble lies ahead in the form of inflation costs. Cable has remained resilient by working through tough issues with customers over the past few years, but companies are still anticipating revenue losses as traditional TV subscribers continue to plummet. In a recent report by Leichtman Research, domestic pay TV providers lost a total of 1.95 million subscribers in the first quarter of 2022. This loss is pushing Cable executives to focus on digital transformation strategies, like video-on-demand, streaming platforms, and the sale of online content. During the MoffettNathanson Media & Communications Summit, Altice USA CEO Dexter Goei argued otherwise, noting, “It’s fair to say we believe this product, the broadband product, is pretty recession proof.” Goei believes that the potential recession may slow growth, but this will not necessarily translate to subscriber loss. High-speed internet remains a necessity for most households, as do cable services. The only loss companies might see is lack of growth for their more expensive offerings.
International
Cinema in Buenos Aires: Argentina Launches International Incentive
Argentina is finally breaking into the world of film tax incentives, starting with Buenos Aires. The country’s capital will offer a 20% cash rebate for international productions’ expenditures, with a minimum spending of 80 million pesos ($680,000). The rebate is capped at 75 million pesos ($600,000) per project. Co-productions and foreign titles that are shot either totally or partially in the city are eligible, but they must have a minimum of four shoot days in Buenos Aires to qualify. According to Enrique Avogadro, Buenos Aires City Culture Minister, the program is ready to launch in October of 2022. Avogadro calls the rebate a “pioneering tool” that will highlight the country’s culture by reaching new international audiences. Additionally, Avogadro says, “Our aim is not to compete by being the cheapest place in the world but rather the one with greatest talent.” Latin American films already have a big media presence in festival circuits (like the Cannes Film Festival) and in TV, as Argentina has produced some big streaming titles. While known for its talent pool, this is only the second film incentive program to come from Latin America (the first being the São Paulo cash rebate that launched in 2021). While the funding offered is minor compared to other global players like France or Spain’s Canary Islands, Argentina hopes to scale this offering over time.
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