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Data: Box Office Mojo; Chart: Simran Parwani/Axios

The summer box office rebound has stalled out, and it's once again forcing movie theaters into some difficult choices, Tim writes. 

Why it matters: This is a precarious ledge for the entertainment industry to stand on. After Wall Street soured on streaming, studios were banking on movie theaters' revival.

The big picture: After a summer that included hits like "Top Gun: Maverick" and "Doctor Strange in the Multiverse of Madness," theaters are facing the same challenge they did during the early days of the pandemic: not enough movies.

Movies are still getting delayed as COVID precautions are making films more expensive and a bottlenecked VFX industry is leading to longer production times. 

The DC film "Black Adam" was pushed from its late summer release date to October, while the next "Mission: Impossible" movie was supposed to debut in September before getting moved to next summer. 

By the numbers: Since "Thor: Love and Thunder" opened in early July to $144 million, there hasn't been a single film to have even a $50 million weekend. The next few weeks do not see a lot of new product, either. 

So far, U.S. theaters have made $5.1 billion in ticket sales. While that is up a ton over the last two pandemic-affected years, it's still pacing 30% behind 2019. 

There have been 310 movies released this year through Sunday. Even if it were to double that from now until the end of the year, it would still be well behind the 910 films that were released in theaters in 2019. 

Be smart: The lack of new movies is due in part to studios releasing more movies directly to streaming, a strategy that has had uneven results.

Movie theater companies Cineworld and AMC are diverging in results (Cineworld is filing for Chapter 11, while AMC is diversifying and still a meme stock), but they're grappling with the same box office demand issue. 

What's next: It will get better toward the end of the year, when films like "Black Panther: Wakanda Forever" and James Cameron's "Avatar" sequel hit theaters. 

1 big thing: Movie theaters' end of summer blues

The state of Hasbro's strategic and operational review under new CEO Chris Cocks got some revived attention over the weekend when Bloomberg reported that the company was considering "the sale or restructuring" of its entertainment assets, Michael Flaherty writes.

Why it's the BFD: The future of Hasbro's entertainment arm, formed via its ill-timed $3.8 billion purchase of Entertainment One in 2019, has come under scrutiny this year on the back of two activist investor campaigns. 

Catch up quick: Investor Alta Fox called for Hasbro to separate its Wizards of the Coast unit from eOne, while activist hedge fund Ancora Advisors said the company should put the entire eOne division up for sale. 

Both called for a board shake-up, and Alta Fox took its proxy fight all the way to the June shareholder vote.

Hasbro fended off Alta Fox's director slate, but its shares have lagged ever since the win. 

What they're saying: Hasbro said in April that new CEO Cocks and his management team had launched a "comprehensive review of our strategy and operations," a move the company dubbed "Focus and Scale."

The announcement of the review naturally added greater attention on what would happen to eOne and other parts of the company, as it looked to focus the business.

Details: Bloomberg reported yesterday that Hasbro has considered two options for its entertainment assets: "take the existing staff and redirect it to make branded entertainment (think 'Peppa Pig' movies), and shut down work on projects like 'Yellowjackets' and 'Designated Survivor.' Or it can sell everything it doesn't want."

From a Hasbro spokesman: "Entertainment is a core foundation of Hasbro. As part of our strategic review process, we are always open to new and better ways to tell stories and bring people together through the power of play via our world-class family of brands."

The intrigue: Hasbro announced last week that Darren Throop, president and CEO of eOne, would step down later this year. 

The bottom line: "Hasbro is just the latest in a long line of companies to arrive in Hollywood with big dreams, only to realize that producing entertainment is both more expensive and less glamorous than most people realize," Bloomberg's Lucas Shaw writes.

Go deeper: Hasbro plans to make a lot more video games

2. The BFD: Peppa Pig process 

Vodafone (LSE: VOD) agreed to sell its Hungarian business at a $1.8b valuation to 4iG Public Ltd. (BID: 4IG) and state holding company Corvinus Zrt. https://axios.link/3CogR9B

Rusk Media, an Indian digital entertainment company, raised more than $9.5m in an extended series A funding round. DAOL Investment and Audacity Ventures led, and were joined by InfoEdge Ventures, Mistry Ventures and Survam Partners. https://axios.link/3pzxxTM

Apollo Global Management isn't interested in buying a minority stake in Manchester United, per the same news outlet (Bloomberg) that previously reported its interest. https://axios.link/3wlchoD

Lukoil, the Russian oil group, acquired Russian Premier League soccer club Spartak Moscow and its home stadium. https://axios.link/3pzr3nU

The Signal, a Noida, India-based news startup, raised new funding. LetsVenture led, and was joined by Capital A and Rainmatter. https://axios.link/3c7reE9

Rokt announced partnerships with Uber and AMC Theatres to run e-commerce ads in their apps. https://axios.link/3dNYUaj

3. Deal flow

Chicken Soup for the Soul Entertainment announced its new senior leadership team following the Redbox acquisition. https://axios.link/3wmJmAz

Directors Guild of America named Rebecca Rhine as its Western executive director. She is the outgoing national executive director of the International Cinematographers Guild. https://axios.link/3QIOIyq

"Saturday Night Live" is losing producer and head of its talent department Lindsay Shookus after 20 years. https://axios.link/3AAkdoG

Sony Music Publishing opened an office in Lagos, Nigeria, and named Godwin Tom managing director. https://axios.link/3QGLDyV

Warner Bros. Discovery let go of four executives at the Oprah Winfrey Network: general counsel Karen Grant-Selma, CMO Jennifer Giddens, EVP of communications Nicole Nichols and head of programming and scheduling MaryBeth Cunin. https://axios.link/3dNxLUF

4. Movin' on up (or out)

Netflix says 'no' to advertising in kids programs, new movies (Bloomberg)

"While Netflix can insert commercials into programs that it owns, it doesn't have the rights to do so for its entire catalog because it licenses thousands of titles from outside studios. Many of those deals don't include the rights to offer programs in an ad-supported environment, forcing Netflix to go back and pay extra," Lucas Shaw writes.

Here's why HBO Max is pulling dozens of films and TV series from the streaming platform (CNBC)

"There are three main motivations behind the cuts: slashing costs, moving away from content aimed at kids and families and decluttering the service," Alex Sherman writes.

'Cable Cowboy' John Malone sees more streaming bundles ahead (NYT)

"In all honesty, what I really want to do is stop going to board meetings, either virtual or physical, spend more time with my wife and more time on a boat — preferably a slow-moving sailboat," Malone tells Benjamin Mullin.

5. Channel surfing

Illustration of a remote control in the shape of a surfboard leaning against a VW bus.

🍿 Situational awareness: MoviePass will relaunch in beta on Labor Day with three pricing tiers, Insider reports. The company said it has partnerships with 25% of U.S. theaters.

@tim_bays: "House of the Dragon" on HBO. Summer blockbuster season has shifted to streaming for August. 

@kerrymflynn: "House of the Dragon" on HBO. Gore, nudity and dragons. Wow, "Game of Thrones" really is back.

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August 22, 2022

1 big thing: Movie theaters' end of summer blues