Aug 22, 2017

Split between studios & movie theaters intensifies

Warner Bros. and Universal Pictures are negotiating a deal with Apple and Comcast to offer audiences digital versions of movies two weeks after their theatre releases, Bloomberg reports. The theater chain and studio businesses have been unable to reach a deal that would let studios distribute more expensive ($30+) digital movies to viewers at home shortly after their release in theaters.

Data: PricewaterhouseCoopers; Chart: Lazaro Gamio / Axios

Why it matters: Studios were hoping to work with the theaters chains on a revenue deal, but now seem to be charging ahead without their blessing, despite the fact that theaters still hold power distributing movies and driving revenue. Noticeably missing from the reported negotiations is Disney, which announced it would build its own entertainment streaming package in 2019.

Bottom line: The movie business is changing quickly and its becoming more reliant on digital distribution than ever (shocking). Cinema revenues are rising, but are being outpaced by digital video rentals and the DVD business is dying, as expected. "Theaters have to focus on providing an experience that goes well beyond what's available at home — hence all the focus on luxury seating, 4DX, live event programming, VR, and better food and beverage options," says Chris Vollmer, Global Advisory Leader, Entertainment and Media at PwC.

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Netflix upset at Golden Globes

Phoebe Waller-Bridge of "Fleabag" won best performance by an actress in a television series - musical or comedy at the show. Photo: Kevin Winter/Getty Images

Despite the fact that Netflix led all other tech companies and entertainment studios in Golden Globe nominations for TV and film, the tech giant was largely beaten out by traditional content companies on Sunday.

Why it matters: The evening served as a pushback from traditional Hollywood against the new tech companies that are encroaching on its turf.

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ViacomCBS buys minority stake in Miramax

ViacomCBS announced Friday a $375 million deal to acquire a 49% stake in Miramax, the television and movie production company founded by Hollywood producer Harvey Weinstein, from Qatar-based beIN Media Group.

Why it matters: It’s ViacomCBS’s first post-merger deal, and it will strengthen the library and resources of the company’s movie studio, Paramount Pictures.

Go deeperArrowDec 20, 2019

Apple bets big on Tinseltown's top talent

Richard Plepler Photo: Gary Gershoff/FilmMagic, Oprah Winfrey Photo: Steve Granitz/WireImage, Reese Witherspoon: Taylor Hill/Getty Images

Apple's new streaming service is only beginning to take shape, but already the tech giant has signaled that it's willing to spend big to lure Hollywood's top talent to be a part of it.

Why it matters: Analysts have for years predicted that Apple, with lots of free cash flow, would one day buy a content company like Netflix or HBO to fulfill its streaming ambitions. But Apple's recent investments in individual producers, actors and directors suggest the Silicon Valley titan is heading in a different direction.

Go deeperArrowJan 3, 2020