.png?width=739&name=MicrosoftTeams-image%20(31).png)
Streaming
Ad Subscription Services: Why Streamers Are Embracing Advertising
Reed Hastings, Co-CEO of Netflix, used to say that the streaming platform would never introduce ads, as the lack of breaks made for a better service. Recent news of shrinking subscriber growth has the company exploring ad use anyway, with a targeted date of implementation at the end of 2022. Traditional TV advertising, which many thought would become obsolete in the subscription business model, is rebounding. The fastest-growing platforms are now ad-supported. Comcast/NBCU’s Peacock, Paramount’s Pluto, and 21st Century Fox’s Tubi are also gaining popularity. Tech companies like Roku and Amazon are participating in free streaming as well. While this seems to be a big shift, streamers see two big benefits in embracing ads. First, Zenith predicts that advertisers will spend up to $65 billion on TV in 2022 alone and streaming now accounts for 30% of all watched TV. Second, the arrival of new platforms is making the “streaming wars” a costly endeavor; companies are spending a lot of money on programming to try to keep up. Therefore, ads are the best opportunity to solve these problems (while still benefiting advertisers) since streaming offers better targeting data than traditional TV. Some continue to question the effect these personalized ads will have on the consumer experience. Streaming TV ads will go through a period of growth and change as more services begin to include ad packages in their offerings.
International
French Vacation: Incentives Lure Hollywood Projects
Film productions have always been attracted to France’s picturesque landscapes, though it’s quite difficult to maintain a project there for long periods of time. Progress was made in 2009 when the country put the Tax Rebate for International Production (TRIP) into place. Last year, a total of 92 projects benefited from the plan, bringing $420 million into France’s economy. Production Facilitators see the tax credit as putting France on the proverbial “Hollywood Map,” debunking the myth that the country is too expensive to use as a location. In addition to the 40% tax credit, having local available crew can be very cost-effective. With the TRIP plan’s lack of a yearly cap, international productions get a 30% rebate. In 2020, the French government created another incentive that adds a 10% bonus to those who work with local French VFX services. The Last Duel was the first film to benefit from the incentive, though the credit drew several other productions in 2021. Television and streaming titles are also booking studio space in Paris to benefit from TRIP. By 2030, the French government wants to invest a total of $633 million in the construction of studios, the creation of training programs, and the creation innovative technology to support the entertainment infrastructure. Currently, production is at an all-time high, with France seeing a total of 315,00 shooting days last year.
Industry
Theater Comeback: Studios Cutting Back on Simultaneous Streaming Release
The Batman was released exclusively in theaters with a 45-day theatrical window. In many ways, this was a big move for Warner Bros., as their entire 2021 slate debuted simultaneously on HBO Max. Since the film made $760 million before its streaming debut, this distribution timeline suggests more movie studios will do the same. Executives are hopeful that exclusive theatrical windows will build anticipation for eventual streaming releases. In a statement made to Business Insider, Mooky Greidinger, CEO of the Cineworld theater chain, said "The bigger a movie succeeds in the cinema, the bigger it is on the auxiliary markets." The exhibitor conference CinemaCon, which took place in Las Vegas last month, featured a speech by John Fithian, CEO of the National Association of Theatre Owners (NATO). In it, he proclaimed that simultaneous release is a dying business strategy—but it's not dead yet, as Universal is releasing their Firestarter remake in theaters and on Peacock. While simultaneous distribution was popular during the pandemic, many do not see it as a viable long-term strategy. In the same fashion, the traditional theatrical window has been shortened from 75—90 days to a 45-day period. This is not yet set in stone, as experts believe studios will adjust the window based on the particular movie.
Digital
Reaching Gen Z: Hollywood’s Presence on TikTok
With TikTok already hosting a number of fan accounts dedicated to the celebration of specific Hollywood actors, studios are now figuring out how they can join Gen Z crowds in promoting their upcoming films. For The Unbearable Weight of Massive Talent, Lionsgate is cashing in on star Pedro Pascal’s popularity by producing content featuring the actor. According to Marisa Liston, Lionsgate’s President of Worldwide Motion Picture Marketing, “You can’t fake engagement on TikTok. It’s a platform with its own language that demands authenticity.” While some users may doubt why a major Hollywood player is making this type of content, others are happy to engage with the marketing strategy. Universal Pictures is making its presence known on the platform by sharing clips from movies like Bridesmaids or Bring It On to create engagement by fueling nostalgia. Studios are also investing with ads. Much of this is driven by popular creators participating in movie “challenges” or creating branded content to promote films with A-list stars. Movie critics are also making quite an impression on the platform, with their influence taking them to red carpet premiers and even earning them spots as livestream hosts for the Oscars.
Production Laws
Safety on Set: Dueling California Bills Propose New Production Protocols
At the beginning of 2022, two bills were introduced by separate Californian Democratic State Senators in attempts to tackle the rising concerns of production safety. Motivated by the tragic death of cinematographer Halyna Hutchins on the set of Rust in 2021, both Senate Bill 821 and 831 propose more regulation for firearms and additional safety training requirements. During the debate, the industry is taking sides. The Motion Picture Association supports Bill 821, and unions like IATSE are backing Senate Bill 831. Senator Anthony Portantino, a former prop master and art director, introduced Bill 829, saying, “The crux of the situation comes down to: is there a distinction between the firearms issue and other issues?” Portantino’s bill would require a fire code official to be present during the use of any firearm on set, in addition to implementing training courses for crew members from the State Fire Marshal. In addition to training, Senator Dave Cortese’s 831 bill would require a set safety supervisor that could shut down productions based on their risk assessments. Regulations like this are already present in some Australian, U.K., and New Zealand-based productions. The MPA and labor unions have not expressed opposing opinions, but both bills are in early stages and could still face resistance as they progress.
High five! Another Friday Five is going live next week—same time, same place. We know what caught our eyes, but we’re all ears. Tell us what you’d like to learn more about in our upcoming editions by following us on Facebook, Twitter, and LinkedIn. Be sure to tag #FridayFive in your comments.
See you next Friday at 10 a.m. (PT).
