Showbiz Sandbox 291: Media Companies Come Clean On Cord Cutting
August 24, 2015
After years of denying cord cutting was happening on any level, several large media companies are finally confessing that cord cutting is a growing trend which may soon affect their bottom lines. After decades of steady growth, cable operators are now beginning to see flat or declining subscriber numbers as new content streaming services pop-up.
Clearly, the business models the television industry has relied on in the past are evolving rapidly, more so than movies or theater or even publishing at the moment. Yet some industry insiders believe the cable cord isn’t being cut, but that it’s slowly fraying as the definition of what it means to be a television network has changed.
Some media companies aren’t waiting to study market indicators before making strategic moves. Last week NBCUniversal made a $200-million investment in the online news outlet Buzzfeed, leaving many to wonder how this could possibly benefit the network.
Of course we also cover the week’s top entertainment news including how boy band One Direction wants to take a break, why Spotify wants to breach your privacy and Cirque du Soleil is headed to Broadway.
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Showbiz Sandbox 290: Disney Plans A Trip To Star Wars Land
August 17, 2015
Last week the Walt Disney Company held its annual fan club convention, the D23 Expo, which gave the company a chance not only to promote some of its highly anticipated movie releases, such as a live-action “Jungle Book”, but also announce some new additions to their popular theme parks.
Disney plans to leverage its acquisition of Lucasfilm by creating an immersive Star Wars Land at both of its theme parks in North America. The company is also working on a “Toy Story” themed land for both parks as well. This is all on top of the “Avatar” attraction Disney is building in its Animal Kingdom park in Florida.
Meanwhile, the dog days of summer are usually a slow time for live theater productions, especially on Broadway. However this year multiple shows are bringing in million dollar grosses each week, including “Hamilton” a new musical that had the courage to premiere during August.
Of course we also cover the week’s top entertainment news including Sesame Street’s move to HBO, the end of Columbia House and how the late talk show legend Johnny Carson is returning to late night.
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Showbiz Sandbox 289: In Hollywood Fame and Fortune Is Often Relative
August 10, 2015
There is no dispute that in the entertainment business, just like in any other industry, money is the fuel that keeps the engine running. Yet raising it, accounting for it, paying it back and doling out profits is becoming more complex for media companies. Indeed, making a fortune in show business is anything but easy or straight forward.
Take Relativity Media for example. The upstart movie studio and its brash CEO Ryan Kavanaugh were going to change the way Hollywood operated and movies were made. However now they’ve filed for bankruptcy. We’ll provide some background and explain the details of what could wind up being the largest studio bankruptcy ever.
Movie moguls aren’t the only one’s struggling to mind their dollars and cents. Legendary musician David Byrne wants record labels to be more transparent about where all the money is going in the music business. Meanwhile the Authors Guild has a few thoughts of its own when it comes to copyright and revenue from book sales.
Of course we also cover the week’s top entertainment news including Jon Stewart’s last “Daily Show”, staff turmoil at Rolling Stone magazine and changes afoot in film distribution strategies.
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Showbiz Sandbox 288: This Summer’s Box Office Is Turning Into A Blockbuster
July 27, 2015
A string of big budget Hollywood sequels and prequels like “Jurassic World”, “Avengers” and “Minions” have driven the 2015 summer box office nearly 15% higher than last year. And not just in the United States. Countries all over the world are reporting strong movie attendance, especially in China where homegrown productions have been the top grossing releases.
It doesn’t hurt that North American moviegoers are currently paying the highest ticket prices on record. Just ask IMAX which just reported the highest quarterly earnings in the company’s history.
It isn’t all good news for Hollywood studios however. The European Union is charging the six major distributors with antitrust violations over what regulators allege are illegal licensing contracts with cable operators. Should the EU prove their case, it could cause havoc by eradicating longstanding entertainment industry business models.
Of course we also cover the week’s top entertainment news including the Emmy Award nominations, the approval of AT&T’s merger with DirecTV, why Neil Young is yanking his music from streaming services.
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Showbiz Sandbox 287: The Unofficial Line On This Year’s Comic-Con
July 13, 2015
Pop-culture fans from around the world made their annual pilgrimage to San Diego over the weekend for this year’s Comic-Con. More than 130,000 attendees turned up to a show where the largest auditorium has a capacity of 6,000. Alex Billington, editor of FirstShowing, explains how some fans had to wait in line for days (literally) to get into popular panel discussions such as the one for “Star Wars: Episode VII”.
Billington waited out the neverending lines so he could fill us in on all the events, panels, trailers and collectibles designed to build hype for upcoming films and television shows like “Hateful Eight”, “Batman v Superman: Dawn of Justice” and “Deadpool”. In fact, so many movie studios and television networks showed up at Comic-Con, and with so much content, one has to wonder if their marketing messages weren’t ultimately lost in all the noise.
Meanwhile, the Minions spinoff from the “Despicable Me” franchise opened to record box office in North America giving Universal Pictures yet another big hit this year. Surely the studio will want the animated film to stick around cinemas for as long as possible, whereas Paramount Pictures has teamed up with two theater chains in an experiment to shorten the release window on certain films.
Of course we also cover the week’s top entertainment news including a request from publishing groups for an antitrust investigation targeting Amazon, “South Park” continues to redefine television thanks to a new deal with Hulu and the Rolling Stones continue their reign as the concert industry’s top earner.
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Showbiz Sandbox 286: The 2015 Mid-Year Box Office and Music Sales Report
July 6, 2015
With the year now half over we join the rest of the entertainment industry in reviewing how 2015 is shaping up at the box office and for music sales. As predicted, the worldwide box office is on track to set another annual record thanks in part to three blockbuster releases that have each earned more than a billion dollars.
China continues to be an ever more important movie market as the country’s box office surged more than 50% during the first six months of the year with imported titles leading the way. Meanwhile, Hollywood movies have fared better in India than in past years with two passing the billion rupee level, a well-established benchmark of box office success.
The picture isn’t as rosy when it comes to music revenue. North American album sales are down 4% and digital downloads have fallen more than 10%. The declines may be caused by on-demand music streaming which has increased 74% so far this year. Whatever the reason, Taylor Swift isn’t sweating it since her most recent album has sold more than 2 million copies this year alone.
Of course, we also cover the week’s top entertainment news stories including the Grateful Dead perform one final concert, massive layoffs at the BBC and HBO Now is a huge hit in the iTunes app store.
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Showbiz Sandbox 285: Why the Film Academy Is Becoming More Diverse and International
June 30, 2015
When the Academy of Motion Picture Arts and Sciences invited over 300 new members to join their ranks this year, many noted not only the number of young women and minorities among the group, but also 36 international invitees. According to Oscars pundit Scott Feinberg of the Hollywood Reporter, that’s the highest number of new international members than at any other time in the Academy’s 88-year history.
We explain why the organization is looking to filmmakers and craftspeople from around the world when adding to their ranks, as well as how that might change the demographics of the Academy moving forward. At a time when international box office has never been more dominant and important, it is nice to see the Academy’s membership become a little more diverse.
E-commerce giant Amazon is also making a few changes, especially in the way it pays authors of titles in its monthly book rental offering. Instead of paying writers for every book a user starts but may not finish, the company will pay based upon how many actual pages a subscriber reads.
Of course, we also cover the week’s top entertainment news stories including why NBC and Univision fired Donald Trump, Harry Potter heads to London’s West End and Apple signs a deal with indie record labels for its new music streaming service.
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Showbiz Sandbox 284: Taylor Swift Takes A Bite Out of Apple
June 22, 2015
When Apple announced its new streaming music service earlier this month certain members of the music industry were quick to voice their dismay over the terms the tech giant was offering. Specifically, indie record labels weren’t happy to see that Apple wouldn’t be paying licensing fees during the three month trial period the company was offering new subscribers. As the chorus of opposition grew louder it was none other than Taylor Swift who pushed Apple to reverse its payment policy.
In an open letter published to her website, the country musician turned pop star criticised the world’s largest music retailer for not compensating writers, producers, or artists during a new subscriber’s three month trial period. She says new artists, young songwriters and independent producers depend on such royalties to survive. In a move that some will argue demonstrates Swift’s influence within the industry, Apple actually relented.
Another entertainment business model currently being disrupted is that of television. With more consumers opting to cut their cable cord for over the top solutions, the NBA announced they would let basketball fans purchase out-of-market games on a per-game and per-team basis. This has huge implications for the broadcast industry as programming continues to slowly become unbundled.
Of course, we also cover the week’s top entertainment news stories including the box office success of “Jurassic World” and “Inside Out”, a big payday for Jennifer Lawrence on her next film and gambling on who will be the next actor to play James Bond.
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Showbiz Sandbox 283: Why Apple Is Cannibalizing Its Own Music Sales
June 16, 2015
Apple finally announced its long rumored music streaming service last week, which is meant to compete with market leaders Pandora and Spotify. The offering seems in direct conflict with the ongoing business of the largest music retailer in the world, but as Ryan Faughnder of the Los Angeles Times points out, Apple may have had no choice since iTunes digital music sales have significantly decreased.
Now, the music industry is hoping that Apple can ride to their rescue once again, as they did with digital music previously, by attracting the large subscriber base required to make music streaming profitable. Faughnder gives us his thoughts on what the new service means to the business, and tells us how competitors have responded to Apple’s entrance into the market.
There seemed to be no competition for “Jurassic World” during its theatrical debut. The film was released globally and gobbled up opening weekend box office records both in North America and internationally, earning more $500 million in just three days. That gross is more than the combined weekend receipts for every other film currently in theaters worldwide.
Of course, we also cover the week’s top entertainment news stories including Rupert Murdoch steps down as CEO of 21st Century Fox, video games get their own hall of fame and what happened when Dave Grohl of the rock band Foo Fighters broke his leg in the middle of a concert.
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Showbiz Sandbox 282: Broadway’s Not So Big Night at the Tony Awards
June 8, 2015
A musical about family, sexuality and suicide along with a play about an adolescent with Aspberger’s syndrome won the top prizes at this year’s Tony Awards over the weekend. Based on Alison Bechdel’s graphic memoir, “Fun Home” was awarded Best Musical and “The Curious Incident of the Dog in the Night-Time” earned Best New Play. On paper, both could have been marginal longshots to win Tonys, which can at times go to more commercial productions.
We go over the list of this year’s Tony Award winners and choose a few highlights from a ceremony in which they were quite sparse. It was great to see Kelli O’Hara win a Tony for Best Actress In A Musical after she had been overlooked the last five times she was nominated. Yet, in a year which saw Broadway break box office records, the telecast flirted with all-time low ratings.
Meanwhile, as we record this episode Apple appears set to announce their streaming music service which some big record label executives see as a tipping point that could save the industry. That seems like a tall order given how late the company is getting to market, but it’s never a good idea to underestimate Apple.
Of course, we also cover the week’s top entertainment news stories including how Netflix is heading to Spain, Senator Chris Dodd is staying on as head of the MPAA and Showtime is going over the top with its new streaming service.
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