PRO Tip Sheet: 5 Insights From This Week

The SAG-AFTRA strike ended this week and we reported on the new $1B agreement, how broadcasters are racing to save the TV season and why theaters aren’t sweating longer movies. [5 Insights From WrapPRO]( The actors strike ended after 118 days with a $1 billion agreement. We detailed the final deal, and delved into how broadcast networks are racing to save the TV season. We also dug into why theaters are not sweating longer movies like “Killers of the Flower Moon,” analyzed Disney’s new streaming strategy which includes a combined Disney+ and Hulu app, and reported on a screening of a movie showing footage of Hamas terrorists massacring Israeli civilians. [Read More on WrapPRO]( 1. [It’s Over: SAG-AFTRA Hails ‘Extraordinary’ $1 Billion Deal to End Strike, Studios Welcome ‘New Paradigm’ for Industry]( By Fuster | Source: [WrapPRO]( - SAG-AFTRA and AMPTP resolve a six-month Hollywood strike with a groundbreaking $1 billion deal, emphasizing unprecedented AI protections, pension hikes, diversity provisions, and a streaming participation bonus. - Negotiations involved key industry figures, including SAG-AFTRA President Fran Drescher, Chief Negotiator Duncan Crabtree-Ireland, and CEOs from major studios, navigating challenges like a halted revenue-sharing proposal for streaming services. - The final deal, pending national board approval, showcases compromises on minimum rate increases, with actors receiving a higher percentage in the first year but lower than the initial guild proposal. - AMPTP remains firm against revenue sharing for streaming, opting for a bonus structure tied to viewership, impacting Hollywood's 2024 release slates with significant delays for major films like "Mission: Impossible 8" and "Snow White and the Seven Dwarfs." - While awaiting ratification, Hollywood prepares for a potential resurgence, but studios have already reshaped their 2024 release schedules, pushing back films like "Venom 3" and "Snow White and the Seven Dwarfs." [Keep Reading]( 2. [As SAG-AFTRA Strike Ends, Broadcast Networks Race to Save the TV Season]( By Jose Alejandro Bastidas, Kayla Cobb, Loree Seitz and Lucas Manfredi | Source: [WrapPRO]( - The end of the SAG-AFTRA strike prompts a swift response from broadcast networks to resume production on over two dozen network shows, with a focus on salvaging the 2023-24 TV season and mitigating potential ad revenue losses. - The urgency to restart production is driven by the risk of losing ad revenue for the TV season ending in May 2024, with networks prioritizing midseason debuts and aiming to produce 10-13 episodes of returning shows. - Industry experts express differing opinions on the timeline for network recovery, with UCLA professor Tom Nunan optimistic about a meaningful season by February, while TV ad platform Simulmedia's CEO Dave Morgan suggests a full year or more is needed to re-energize entertainment programming. - Returning shows take precedence over new productions due to the upfront investment required for new series, impacting schedules and premieres for several upcoming shows, such as ABC's "High Potential" and NBC's "St. Denis Medical." - Despite the challenges, established franchises like Wolf Entertainment's "Law & Order" and "Chicago" series are well-positioned to resume production quickly, aiming for a late January premiere and contributing to the industry's recovery efforts. [Keep Reading]( 3. [No Intermission, No Problem: Why Theaters Aren’t Sweating Longer Blockbusters]( By Scott Mendelson | Source: [WrapPRO]( - Hollywood is witnessing a trend of longer movie runtimes in 2023, with awards contenders and popcorn flicks alike testing audience patience, as seen in films like "Killers of the Flower Moon" (206 minutes) and "The Hunger Games: The Ballad of Songbirds and Snakes" (158 minutes). - A recent poll reveals that while journalists debate the surge of lengthy films, Hollywood insiders and a majority of paying moviegoers consider longer runtimes more of an annoyance than a significant problem, highlighting the industry's internal perspective on the matter. - Despite preferences for shorter movies, theaters, constrained by studio offerings, are adapting to the trend of longer runtimes, with some exploring strategies to maximize showtimes and programming during peak hours. - In the debate over intermissions, a high-level studio executive suggests that discussions around intermissions may be self-serving for theaters, providing another opportunity to sell concessions, while consumers may appreciate having a choice. - A survey of 600 moviegoers indicates that long runtimes generally are not a major deterrent, with 50% of respondents stating they never consider it, and only 14% viewing it as a frequent variable, emphasizing that successful movies, regardless of length, tend to capture audience interest. [Keep Reading]( 4. [Disney Goes All-in on Streaming - But Is It Too Late to Catch Netflix? | Analysis]( By Alexei Barrionuevo and Lucas Manfredi | Source: [WrapPRO]( - Disney CEO Bob Iger announces a new strategy for the company's streaming business, unveiling plans to launch a beta version of a combined Disney+ and Hulu app in December and prioritizing "significant and sustained profitability" for streaming. - Disney's confidence in its streaming business is backed by strong Q4 results, with the addition of 7 million subscribers to Disney+, primarily from international markets. - As Disney aims to purchase Comcast's remaining 33% stake in Hulu for over $8.61 billion in 2024, it positions itself for a more focused competition by combining Hulu, Disney+, and ESPN in a consolidated streaming approach. - Despite Disney's initial struggles to surpass Netflix in streaming, the company's new strategy includes eliminating consumer confusion by creating a single app for Hulu and Disney+, with a beta version launching in December before a full launch in March. - Disney anticipates reaching profitability in its streaming division by the end of fiscal year 2024, emphasizing the need for a streamlined streaming strategy amid challenges, such as overspending, content diversity, and competition with Netflix, which remains a significant subscriber leader. [Keep Reading]( 5. [WaxWord: The Footage of the Oct. 7 Hamas Massacre — a Real-Life Horror Movie That I Hated]( By Sharon Waxman | Source: [WrapPRO]( - The Israeli army presented a screening in Los Angeles, titled “Bearing Witness,” showing horrifying real-time footage of Hamas massacring Israeli civilians captured from various sources like victims' cellphones, terrorists' bodycams, and security cameras. - The footage included distressing scenes such as a woman in pink pajamas shot at close range, an attempted beheading of a corpse, and two young boys witnessing their father's death in a grenade attack on a kibbutz. - Some of the less obvious but impactful moments featured jubilation among Hamas terrorists after shooting civilians, captured through dashcam recordings and walkway penetrations on a kibbutz. - The screening included audio of a Hamas commander instructing fighters to send a corpse back to Gaza City for public mistreatment, along with images of hostages thrown into a pickup truck and burned remains. - The audience at the screening had varied reactions, with some leaving before it started, others openly weeping, and some expressing anger that the IDF did not show even more disturbing content, resulting in a fistfight outside the museum. 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