weeklybugle

[weeklybugle]

Is Netflix Marching to Mainstream Film Industry?

As the bellwether for the Academy Award, The Globes once had an influential role in the industry. However, in recent years due to the accusations over racist nominations, category designations, and lack of diversity for filmmakers, NBC had decided to “cancel the telecast in 2022 and top studios and stars [are] pledging not to work with the group until it instituted reforms” (Variety).

With countless controversies and accusations over the lack of diversity among its memberships, the Hollywood Foreign Press Association and the Golden Globe Awards still announced nominees for the 79th annual film and television awards on December 13th, 2021.

Among all the nominations this year, there’s an unusual phenomenon that streaming services could be the biggest winner of the year. Based on the full list of nominations this year, streaming giant Netflix had “the most film nominations with 17 nods for the likes of the Power of the Dog, Don’t Look Up, and Tick, Tick … Boom!” (Variety). With major film studios dominating the Hollywood Foreign Press Association, streaming services such as Netflix or Amazon Prime have always been seen as outsiders. However, this year Netflix had become the production company with the most nominations, which is a milestone for the company. As the industry is still suffering from the pandemic with box-office underperforming, this could be a turning point for various streaming companies to join the mainstream film industry.

[weeklybugle]

“Marry-Me” is Getting Dual Release in Theaters and Peacock

It is no secret that the box office is still hurting from the ongoing COVID pandemic. Now with the fear over the new Omicron variant, the hope for box-office to return to its pre-pandemic level is still very low. Under this situation, even the world-class director Steven Spielberg can not save the box office, as his new musical West Side Story flopping with a dissident $10.5 million over its debut.

In the hope to revitalize the film industry and adapt to the current situation, over the past year many major studios have utilized a dual distribution model where the film would get released over a streaming platform the same day it’s released in theater. For example, easier this year films such as Dune, and Suicide Squad have both utilized the duel distribution model through HBO Max and Warner Bros.

Seeing the uncertainties in the market as the new Omicron variant continues to threaten the industry, Universal had decided to implement this strategy with its upcoming romantic-comedy Marry Me— starring Jennifer Lopez and Owen Wilson. The film had announced to be released on Feb.11, 2022, and was “previously set to launch exclusively in theaters” (Hollywood Reporter). However, Universal recently announced the film will be available to stream on Peacock the same weekend the movie hits the theater. As COVID cases are still affecting consumer behaviors, which in this case, converting movie-goers to streamers, this hybrid distribution model could be a new norm for major studios to consider.

[weeklybugle]

“First-Ever Hollywood Feature” Funded by NFTs, an Innovation or a Total Joke?

On December 1st, 2021, the executive producer of The Irishman Niels Juul said in an interview that he hopes to fund comedy-drama A Wing and a Prayer, fully through the issuance of non-fungible tokens. As NFTs have surged in popularity over the last year, its total market is estimated “with $26.9 billion worth of cryptocurrency traded associated with NFTs” (VentureBeat). With such an explosive phenomenon in the cryptocurrency market, especially among the younger generations, it is difficult not to seize such an opportunity given the ever-changing nature of the film industry.

As the founder of production company NFT Studios as well as producer of well-known films such as The Irishman, Niels Juul had expressed his desire in funding “a series of films entirely through NFTs” through certificating authenticities for digital files of the films. And the very first project in his mind is the comedy-drama A Wing and a Prayer.

Although the idea of financing movies through NFTs is not new, for example, star Jennifer Esposito is considering her directorial debut “with the indie feature Fresh Kills, financing the movie through a combination of NFTs and a first-of-its-kind public offering to sell shares in the film”, but the idea of funding a production fully through NFTs is very new to the industry.

As Juul said during the interview, that “[the industry is] in the middle of great transition in the entertainment business where traditional ways of film funding and ownership are being uprooted due to the rapid rise of streamers and other digital platforms” (Juul). It is a very innovative and disrupting way in comparison to the traditional methods of funding films through a combination of major studios and investors. It is also very exciting to imagine that in the short future, the general public would have the opportunity to take ownership of a specific clip of a film. In addition, this innovative method might be a turning point for the traditional theatrical releases given the pressure from online streaming services. By getting the general public/fans involved in the process might attract more attention as there will be more opportunities for interactions during the production stage.

[weeklybugle]

The New "Icebreaker", Oh! My Gran.

It’s been almost six years since the last Korean feature film was released in China, the world’s largest film market, when South Korea deployed the THAAD U.S. missile defense system in 2016. The move was considered a major strategic threat and provocation to the communist country. Following Beijing’s decision in 2016, no “Korean film had a proper theatrical outing in the mainland since 2015’s The Assassination”(Variety).

However, this long-term block is going to be lifted as the official posters of the 2020 Korean comedy “Oh! My Gran (Oh! Moon-Hee),” are released in various Chinese theaters. In the 2018 Beijing International Film Festival, seven Korean Films were invited to screen. However, none of them were granted the green light to be publicly in China. With now Beijing officials approving the release of Oh! My Gran, it is an indication that China is easing its policies on Korean content specifically on films and pop cultures. As the world’s largest film market, China has a strong audience base for various International films and is “home to millions of devout K-pop and K-drama fans”. As posters of Oh! My Gran being released in various theaters, fans are excited to see Korean culture being allowed once again through mainstream media.

In addition, as the article has also pointed out that “next year marks the 30th anniversary of the establishment of formal diplomatic relations between South Korea and China”, which is a monumental milestone of diplomatic relations. By easing the policies set on Korean contents since 2016, this could also indicate the ease of tension between the two countries as there have been conflicts over various geopolitical issues. On the other hand, devoted fans are very excited to witness once again the cultural exchanges between the two countries, and Oh! My Gran is set to become an icebreaker for the long-term block.

[weeklybugle]

Another Stab at Antitrust?

As one of the leading media conglomerate, Discover Inc. is very much valuable due to its massive content library of “over 55,000 episodes, with 2,500 series” across popular brands including A&E, Food Network, Travel Channel, Discovery Channel and Animal Planet. In May 2021, the company had announced a ambitious strategy that is to merge with AT&T’s WarnerMedia, one of the “Big Five” major studios in America, to become a new global media powerhouse. If the merger goes successfully, this new media powerhouse’s library will surpass its major competitors Netflix and the confined catalog of Disney+ and Hulu.

However, the merger is currently under review by Congressional Democrats as legislators scrutinize this $43 billion deal on antitrust grounds. In a letter drafted by the legislators, it states that “this transaction raises significant antitrust concerns. In particular, the merger threatens to enhance the market power of the combined firm and substantially lessen competition in the media and entertainment industry”.

In response to the letter, AT&T’s CEO John Stankey had defended the deal by calling the statement “unfounded” and had expressed his optimism on the deal as AT&T still remains on track to close the deal in mid-2022. Over the past year and so, antitrust regulations have been at the forefront in regulating merger and acquisition deals. Similarly in early 2021, the Amazon Prime-MGM deal was also brought to the attention of FTC on potential violation of antitrust laws. However, in late June the $8.5 billion acquisition was approved by the Justice Department. As competition in market share intensifies over online-streaming services, it is clear that major studios are looking for ways to boost up their content library by making strategic moves within the industry.

[weeklybugle]

Would Movie Goers Return to Pre-Pandemic Level?

Following the shocking discovery of the new COVID variant, Omicron, in Africa, the world is now once again covered in fear and panic. Of course, as one of the most affected industries, the film industry still has many uncertainties and challenges on the way back to the pre-pandemic level.

Just recently, a report which was commissioned by Quorum, Cultique, and Fanthropology was published in focus to understand the best strategy in bringing back former audiences to theaters under the current circumstances. In the research, it claimed that “[audiences’] reluctance mostly come down to concerns about safety and price”. In addition, this trend is likely to become permanent in the future as “the longer the exhibition tales to address these issues, the more likely it is that non-theater-going behavior will be set”( Brent Lang, Variety). As more online-streaming platforms are attracting more audiences and subscribers by implementing online premieres and releasing films, it is critical for the industry to take action in proving safer and more convenient ways to see movies in theaters.

As ticket sales for the week of Thanksgiving drop nearly $100 million in comparison to the pre-pandemic level, the industry is in a very challenging situation. However, in the survey, it is reported that only “16% of people who haven’t returned to theaters in the COVID era don’t see themselves doing so in the future, another 58% are hopeful they can return” (Brent Lang, Variety).

Interestingly, the concerns over safety issues are not the only problem, as others in the survey have complained about ticket price and “buying snacks at cinemas is too expensive”, and “they would go more often if moviegoing was less expensive”(Brent Lang, Variety). In solving this issue, many theater franchises have rolled out low-cost subscription passes, as well as loyalty programs to attract moviegoers who prefer cheaper tickets. With the research presented in the report, there is space for optimism for the industry and gradual growth in moviegoers is likely to happen in the post-pandemic era.

[weeklybugle]

Censorship in Malaysia bans Chinese war movie “The Battle at Lake Changjin”

Grossing over $890 million so far in China, the Chinese war movie The Battle at Lake Changjin is set to become the second-highest ever box-office grosser and China’s most expensive film to date. The movie is based on the Battle at Lake Changjin, "a pivotal battle in November 1950 during the Korean War in which Chinese forces pushed US marines back over the 38th parallel” (Guardian).

The success of this film in China is largely due to the patriotism spirits in the communist country, echoing the overall government propaganda promoted domestically. This government-supported project also took the opportunity to address the current geopolitical tension, asserting the moral superiority of the Chinese soldiers by showing them fighting in extreme conditions and severe weather.

However, in a recent Variety article, it has been reported that the Malaysian authorities have declined to approve this Chinese blockbuster for theatrical release due to its promotion of Communism. In a recent report by the film’s local distributor Mega Film Distribution, it “denied the film promotes communism, [and believe] the audience can use this film to trace how the Chinese volunteer army fought in the extreme cold and harsh environment” (Variety). Since the release of the movie, it has made ¥5.6 billion yuan ($842 million) in China, the second-highest gross film in China under another Chinese patriotic film Wolf-warrior 2.

As the world’s largest film market, the Chinese film industry has been growing at a rapid pace. Yet, the majority of the blockbuster films in China are echoing the overall patriotic theme. Instead of taking orders directly from the communist government in terms of what to produce, the film studios in China are receiving indirect incentives by producing patriotic films that are aline with the government by receiving a massive box-office gross in the country.

[weeklybugle]

"Red Notice" and Netflix’s brand-new top 10 list

On Nov.12th, 2021, Netflix released its latest movie “Red Notice” starring Dwayne Johnson, Ryan Reynolds, and Gal Gadot. However, it is not the only exciting project that Netflix had come up with this month. On Tuesday, Netflix rolled out a new website metric that measures its most-viewed films and series by the number of hours users spend watching them, and currently “Red Notice” is No.1 up on the list.

According to this new metric, this action-comedy stars the trio of stars had been watched for a total of 148.7 million hours globally since its debut on Netflix. Especially on its Friday-Sunday debut, the movie had pulled in an extraordinary 4.2M households, beating Marvel’s Shang-Chi and the Legend of the Ten Rings on Disney+ which had 1.7M U.S. households in its first weekend.

Although the streaming company had provided viewership data before, this new site, “Top 10 on Netflix,” will provide more detailed data on a strict weekly schedule. The new site will be updated 52 times a year, which includes lists dedicated to TV series and films, as well as English and non-English titles. “This is an important step forward for Netflix,” said Pablo Perez De Rosso, a vice president for content strategy at Netflix.

With the release of “Red Notice” in November taking first place on Netflix’s Top10, this strategy of providing viewership data to its audiences not only serves people’s curiosity to understand what success means in a streaming world but also puts a lot of pressure on HBO Max, Amazon Prime Video and other streaming platforms.

[weeklybugle]

"Spiderman, No Way Home" Finds its Way to China

Taking over 13.504 billion worldwide in total box-office gross, Disney’s Marvel Cinematic Universe ended its Third Phase with the Infinity Saga, becoming the most successful phase for the MCU. Although the pandemic has postponed the MCU schedule, in July 2021, the release of Black Widow officially marks the starting of the Fourth Phase.

However, what’s significant about the fourth phase is that the first three movies, Black Widow, Shang-Chi, and Eternals have all been disapproved and banned in the world’s largest film market — China. Given the large presence of the Chinese film market, the inability to release these films in China has been a huge hit to this year’s Marvel line-up.

Yet, things will turn for better in the fourth phase with the most anticipated film “Spiderman, No Way Home”. Earlier this week, the film has begun courting China via Sony’s first official poster, to the great excitement of fans scouring the image for fresh hints of what to expect from the title. The highly anticipated film could be a savior to this year’s Marvel MCU line-up given the extraordinary performances the previous two Spiderman films have done in China. Released in 2017, the first Spiderman film “Spiderman, Homecoming” grossed $116 million in China, and in 2019, the sequel “Spiderman, Far From Home” made an extraordinary gross in China taking over $199 million, by far the strongest oversea performance.

As the most anticipated MCU film in the Fourth Phase, “Spiderman, No Way Home” could be the turning point for this year’s MCU lineup in the global market.

[weeklybugle]

7 Takeaways from “007:No Time to Die”.

Released on Oct.8th, 2021, the latest James Bond sequel “007: No Time to Die” stormed the box office with a grossing of $360 million worldwide, becoming the UK’s sixth-biggest of all time and the biggest three-day start in the franchise’s history. Despite opening slightly behind expectations, this Daniel Craig’s final outing as James Bond marks a positive step forward for the movie theater business, which has struggled to rebound from the pandemic, and it has also provided great insights into the film market.

1. Older audiences aren’t ready to return to theaters

The 60-year old British film series has always been particularly popular among older crowds. Yet the reality is that older audiences have been the most concerned about new variants of COVID-19 and, as a result, haven’t been as tempted to go to their local multiplex.

2. Young men aren’t sweating variants

For “No Time to Die,” audiences skewed heavily male, representing 64% of ticket sales. That was also the case with “Venom” as well as “Shang-Chi”, “Blackwidow”, and “F9”.  With all these properties catering to younger audiences, the initial returns on those movies are higher than “No Time to Die.

3. It’s all about the experience

It is no doubt that when people go to the theater and watch the latest movie, they are more likely to watch it in the best quality possible—epically in the pandemic era. As for “No Time to Die,” premium large formats such as Imax, Dolby, RealD contributed to 36% of overall ticket sales, and this trend is expected to continue with films like “Dune,” “Eternals,” and Sony’s “Spider-Man: No Way Home”.

4. Summer in October

Although the overall box-office is hard to compete with the pre-pandemic levels, this October, which isn’t a typically busy period at the box office, is setting to be stronger than historically summer months as audiences return to theaters. “We are seeing numbers in October that we would normally see in the summer,” says Paul Dergarabedian, a senior media analyst with Comscore.

5. New style under Amazon

Acquired by Amazon for $8.45 billion dollars, the Bond property is a cornerstone for MGM. Although it is Craig’s last Bond movie, it sure won’t be the last one for MGM, especially with backing from Amazon. However, this budgetary stressor needed to be solved, with over $250 million spent on the film. It’s true that Bond has become synonymous with extravagance, but there should be ways to reduce costs — and still deliver on style.

6. The market outside of the theater

With over 60 years of history, the 007 franchise has become an icon with Bond’s extravagant and elegant style. Since the clothing is a veritable extension of the character, a market of “Bond” fashion pieces have become popular over the internet. From sunglasses to watches, people are buying these same-style accessories over various high-end fashion stores.

7. Better Management, Better Deals

Following the debut of “007:No Time to Die”, Amazon, the parent company of MGM, has released a  “James Bond Blu-Ray Collection” for $77. By acquiring MGM for $8.5 billion dollars, the Bond franchise has been seen as a cornerstone property for Amazon. This collection of James Bond films is one strategy that Amazon uses to make profits from those existing IPs from MGM.

[weeklybugle]

Could "Venom: Let There Be Carnage" Reshape Sony's Marvel Universe?

Premiered on Oct.1st, 2021, the comic-book-based sequel “Venom 2, Let There Be Carnage” had swept the box office with $90.1 million in its debut, setting a new pandemic record. The movie is based on the famous Marvel Comic supervillain, Venom, who’s first appeared in the comic book, The Amazing Spider-Man (1984). However, in 1999 Sony Pictures Entertainment had acquired the film rights to Spider-Man along with 900-some Marvel Comics Characters under the Spider-Man umbrella, making it impossible for Venom to join the popular Marvel Cinematic Universe.

However, in late August, Marvel fans have seen an interesting turn with the newly released trailer of Disney’s “Spider-Man: Now Way Home”, with classic “Sony-owned” supervillains appearing in the trailer. Since then, there have been massive discussions and conspiracies on social media over whether the anticipated Spider-Man 3 will include other Sony-owned characters such as “Spiderman” played by Tobey Maguire, and “The Amazing Spider-Man” played by Andrew Garfield. If all of these guesses are true, it means that Marvel fans will witness what’s considered the biggest collaboration in comic-based movies in the 21st century.

In the newly released “Venom: Let There Be Carnage”, hints of potential collaboration are planted in the movie, making fans all over the world excited about Spiderman 3, which is set to debut in just two-and-a-half months. To not spoil the movie or the plot, I can not comment on the scene or hints from the movie. But if the collocation was to happen in the Spiderman 3 film, it will be an iconic and ground-breaking move by both Sony Entertainment and Disney. In addition, it will also help both sides to settle down the ongoing battle over the film rights of Spiderman since 2015.