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Industry
Mipcom Makes a Comeback but Numbers Fall Below Pre-Pandemic Levels
Mipcom returned with enthusiasm this year but isn't back to its pre-pandemic levels. This year, 10,896 delegates attended, down from more than 13,500 delegates in 2019, the peak year. 1,311 delegates attended MipJunior this year, compared to 1,500 in 2019 and there were 3,100 buyers versus over 4,700 in 2019. There were 321 company stands, including Paramount, BBC Studios, and Disney as well as significant players such as Warner Bros. Discovery, Sony Pictures Television, Paramount Global Content Distribution, NBCUniversal International, AMC Studios, A+E Networks, ITV Studios, and Fremantle in attendance. Mipcom and MipTV director Lucy Smith told Variety: “The main part of [the shortfall] is effectively due to the fact that some territories are not as big as they were because of the tail-end of COVID.” She also stated: “Our ambition for Mipcom Cannes was to come back with a bang and be true to the billing as ‘The Mother of All Entertainment Content Markets.’” Among star guests were Brian Cox, Emily Blunt, and Cara Delevingne, while Tim Davie, BBC director-general, Rob Wade, Fox Entertainment CEO, Marco Bassetti, Banijay CEO, Jennifer Mullin, CEO of Fremantle, and Erin Underhill, president of Universal Television were among the top speakers. The Seaview Producers Hub set for networking and panel discussions featured Lars Blomgren, Banijay's head of scripted, Christian Vesper, Fremantle's global drama president, Lisa Perrin, ITV Studios' managing director, international production, and Nicole Morganti, Amazon’s head of originals, Italy. Smith said MipTV is scheduled for April 17-19 and is expected to be "a more productive and concentrated market.” Mipdoc, Mipformats, Mipdrama, and a kids' sidebar would run simultaneously with MipTV. In tandem with MipTV, Canneseries will host its first international documentary series competition. On Sunday, the documentary buyers' events will take place where buyers preview for the Canneseries official selection. Mipdrama will host the "Future of Kids TV Summit," addressing future trends.
International
Inside Northern Ireland's Plan to Meet Global Production Boom's Demands
Northern Ireland is setting the lush stage for Netflix’s Paul Feig-directed fairy tale adventure The School for Good and Evil, which drops today. This marks the streamer’s first major production to shoot in Northern Ireland. Despite the changing goals for film and television production and the global boom in production, Northern Ireland is stepping up efforts to strengthen its skills sector and provide a competitive edge for its next generation of storytellers. “The global boom in production is a big, big strain everywhere,” says Andrew Reid, Head of Production at Northern Ireland Screen. A new four-year strategy titled Stories, Skills, and Sustainability was revealed last week by the national screen agency, which promotes and supports sustainable film, television, and animation production in Northern Ireland. Funding for the initial year has increased by $5.4 million to $19.4 million, backed by the Northern Ireland Department for Economy, while it’s also planning to more than double its investment in the skills sector to $4.5 million. “I would say that we have been very serious and dedicated towards properly reflecting a makeup of the people in the screen industry,” Reid says. “But secondly, we also get to make real-value careers in Northern Ireland.” By joining forces with Northern Ireland Screen, the BBC launched the Creative Industries New Entrant scheme last March, which aims to offer opportunities for new entrants to those least likely to enter the industry. Three groups are targeted: people with disabilities, people from minority groups, and people from lower socioeconomic backgrounds. Studio Ulster, Ulster University's virtual production facility at Belfast Harbour Studios, is set to receive a $28.3 million Belfast Region City Deal investment from Northern Ireland Screen. With a 57,000-square-foot building, the cutting-edge location houses two large virtual production stages with in-camera visual effects, motion capture, 3D scanning for full bodies, faces, and objects, and a smart stage for research. Studio capacity and crew shortages in London cause producers to look further afield, and Belfast Harbour Studios and Titanic Studios offer a great alternative to UK talent, plus a 25% film and high-end television tax relief. Reid pointed out, “We want partners in production that share our values and want to diversify the industry they work with and who will buy into our skills strategy and give the opportunities to Northern Ireland residents to grow.”
Technology
Mandalorian and House of the Dragon Tech Face Struggles with Growth Spurt
Disney+ series The Mandalorian made headlines for its inventive use of an LED stage and virtual production pipeline for filming and incorporating real-time effects. Since then, these types of stages have become what is arguably the fastest-growing area of visual effects and production technology. Despite booming in popularity, observers warn LED stages require more understanding of the business, tech, and creative models before reaching their full potential. “We are tracking roughly 300 stages, up from only three in 2019,” said Miles Perkins, film and TV industry manager for Epic Games. However, even though stakeholders promise virtual production stages, others worry there are too many in the market. “It was a big learning curve, HBO’s House of the Dragon director Clare Kilner says. Still, the virtual production stage at Warner Bros. Leavesden in London, where Dragon was filmed, is already closing. Ben Grossmann, an Oscar-winning VFX pro whose company Magnopus developed virtual production workflows for Jon Favreau's The Jungle Book and The Lion King — estimates that the cost to build an LED stage for virtual production can run from $3 million to $30 million. In contrast to traveling to locations, LED stages provide a sandbox for creative experimentation, reducing costs, schedules, and complexities of production. Oscar-Winning Cinematographer Greig Fraser, who used LED stages for season one of The Mandalorian and a portion of The Batman — says virtual stages “do not do midday or daytime sunlight very well.” According to sources, virtual production requires early planning, including scheduling, budgeting, creativity, and involving various departments. In addition to LED stages, virtual production can encompass previsualization and performance capture. Favreau’s Lion King was the first film to use virtual reality goggles to explore CG African locations. James Cameron’s 2009 Avatar is often considered the beginning of what is today considered virtual production. The Visual Effects Society has introduced an online virtual production glossary to help filmmakers use a common vocabulary. In this context, virtual production is defined as a technique that “uses technology to join the digital world with the physical world in real time. It enables filmmakers to interact with the digital process in the same ways they interact with live-action production.” According to Grossman, virtual production may be the bridge between TV content and immersive experiences and putting audiences in those experiences.
Streaming
The Battle for Streaming Ad Dollars Behind Netflix and Disney+
Netflix unambiguously rejected the idea of ad-supported streaming three years ago. “When you read speculation that we are moving into selling advertising, be confident that this is false,” the streamer said in its second-quarter 2019 investor letter. There is no doubt Netflix's advertising thinking is changing. A new revenue stream is being offered by both Netflix and Disney+ this fall as subscriber growth has slowed — Netflix lost 1.2 million subscribers in the first half of 2022, while Disney+ gained 5.5 million. Allowing “consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense,” Netflix chief Reed Hastings explained to investors in April. Streaming service Netflix will launch its Basic with Ads on Nov. 3 in the United States and 11 other markets. On Dec. 8, Disney+ will announce its ad-supported plan at $7.99 a month. In Q3. Morgan Stanley forecasts Netflix and Disney+ will capture about 15% share of connected-TV advertising in the U.S. by 2026, respectively, for $2.7 billion and $1.9 billion. Initially, there were a few reasons Both Netflix and Disney+ balked at introducing advertising due to concerns that it would turn off subscribers. Consumers prefer subscription VOD services without ads since they believe advertising taints the premium-entertainment promise of Netflix and Disney. However, a September 2022 survey by research firm Disqo found that 39% of people without Netflix would consider signing up for an ad-supported option, and 26% without Disney+ would do the same. Netflix has, in the past, been notoriously tight-lipped about its data. Now, along with Disney+, they'll have to reveal more detailed information about their audience and viewing habits. Government regulations will also govern the privacy of personal data collected by the new services. It is stated that Disney and Netflix have calibrated their ad-tier launch plans so that cannibalization risks can be mitigated and that premium ad rates may be achieved. Other industry observers say it's not out of the question for Netflix to get in the range of $65 CPM (cost per thousand impressions) it floated to ad buyers in August. In addition to stitching ads into Disney+, Disney needed to raise the price point of its flagship streamer after originally offering it at a low price point to acquire subscribers quickly. Disney+ no ads will cost $10.99 a month, while Disney+ with ads will cost $7.99.
Film Festival
Sundance Film Festival Cancels New Frontier 2023
New Frontier, Sundance's experimental new works section that has been showcased for 15 years, has been canceled for 2023. New Frontier catalyzed VR and AR creativity at festivals worldwide as the industry grew while anticipating industry-wide interest in the metaverse and other emerging technologies. While Frontier accepted submissions for months as an exclusively virtual event, New Frontier chief curator, Shari Frilot, informed artists who submitted projects that their submission fees would be reimbursed. “We want to let you know that New Frontier is presently choosing to take time to reflect upon the rich learnings gained over the past two years as we evaluate the shifts in the media landscape to understand how best to serve our community of artists and our audiences,” Frilot wrote. Sundance representatives said that budget cuts have not led to the backtracking. In recent months, Frilot visited other festivals to assess the emerging media community. In 2007, Frilot joined Sundance after establishing herself as a filmmaker in the early years. At that time, the program was called "New Frontier on Main" and focused on digital installation. Live performances, interactive experiences, and virtual reality projects have been incorporated. By 2016, New Frontier showcased more than 30 VR projects, but it never gained the same media attention as other Sundance programming. New Frontier projects that gained traction include Joseph Gordon-Levitt's hitRECord.org and live interactive documentary works from Sam Green, whose 32 Sounds opened the section. New Frontier-focused projects will now most likely need to seek out other new media programs at festivals such as SXSW and Venice. With several major festivals moving away from exclusive online offerings, the New Frontier virtual program was scuttled. The Spaceship and its 3D social hub will no longer be available at Sundance, as well as Zoom-based rooms created by OhYay, which announced its closure over the summer. Unlike Toronto and New York festivals, Sundance's film program will remain virtual. In addition to exclusive in-person screenings during the first weekend, badge holders and ticket buyers will access the complete competition program online beginning January 24.
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