Netflix’s global plan revealed

Jason Hirschhorn of REDEF interviewed Netflix CCO Ted Sarandos one year ago at the Upfront Summit 2020.

Even though this is from the pre-pandemic past, the insights are insightful.

Speaking to Netflix’s international reach, Ted says:

“I think people really want to see their stories; they really want to see themselves on screen.”

As to their reach, he claims:

“We can find a great story from anywhere in the world and make it play anywhere in the world.”

He says there are only two reasons people watch Netflix:

  1. to connect, or
  2. to escape.

The reason why Netflix does not specialize:

“Tastes are incredibly diverse; you don’t have to leave Netflix as your tastes evolve.”

My take: to connect or to escape. I interpret that as Tragedy or Comedy. It all boils down to a good story well told.

Digital Humans coming soon!

Epic Games and Unreal Engine have announced MetaHuman Creator, coming later in 2021.

MetaHuman Creator is a cloud-streamed app designed to take real-time digital human creation from weeks or months to less than an hour, without compromising on quality. It works by drawing from an ever-growing library of variants of human appearance and motion, and enabling you to create convincing new characters through intuitive workflows that let you sculpt and craft the result you want. As you make adjustments, MetaHuman Creator blends between actual examples in the library in a plausible, data-constrained way. You can choose a starting point by selecting a number of preset faces to contribute to your human from the diverse range in the database.”

Right now, you can start with 18 different bodies and 30 hair styles.

When you’re happy with your human, you can download the asset via Quixel Bridge, fully rigged and ready for animation and motion capture in Unreal Engine, and complete with LODs. You’ll also get the source data in the form of a Maya file, including meshes, skeleton, facial rig, animation controls, and materials.”

Got that? See documentation.

The takeaway is that your digital humans can live in your Unreal Engine environment. Is this the future of movies?

My take: This reminds me of my experiments in machinima ten years ago. I used a video game called The Movies that had a character generator (that would sync mouth movements with pre-recorded audio,) environments and scenes to record shots I would then assemble into movies. See Cowboys and Aliens (The Harper Version) for one example. You know, in these COVID times, I wonder if Unreal Engine’s ability to mash together video games and VFX will become a safer way to create entertainment that does not require scores of people to film together in the same studio at the same time.

2021: streaming to cost more

Frank Pallotta predicts on CNN Business that Streaming is about to get a lot more expensive.

Last week Disney+ revealed it has amassed 86 million subscribers and “will have roughly 10 new series from Marvel and Star Wars, as well as 15 Disney live action, Disney Animation and Pixar series. Disney also said that 15 new films from Pixar, Disney live action and Disney Animation will be heading to the service.”

Oh, and the price is going up in March 2021. This, after Netflix has already raised prices for US subscribers in October 2020.

Frank argues that streaming subscriptions must go up to pay for the expensive movies that will find their audiences at home in 2021 and not in cinemas:

“Take HBO Max, for example. The service from CNN’s parent company WarnerMedia announced earlier this month that it will stream movies on HBO Max the same day they drop in theaters. Whether that becomes the norm or is just a quick solution during a pandemic is yet to be seen. But if it becomes a permanent strategy, consumers will likely see their subscription prices rise over the next few years. Producing a major blockbuster like ‘Wonder Woman 1984’ isn’t cheap.”

He also quotes Bernie McTernan, a senior analyst at Rosenblatt Securities:

“Disney increasing its content budget is a big deal for the whole industry, including Netflix. It is effectively raising the bar to compete. If Disney needs to spend $14 billion to $16 billion on content, then Netflix likely needs to spend well over $20 billion to achieve the same subscriber scale globally.”

Investors will foot this with the expectation of future company profits. But given that the rate of new subscriptions is plateauing, Netflix will have no choice other than raising prices again. (They have also cancelled their free month trial subscription.)

My take: and don’t forget that in Canada GST will become payable on your foreign streaming services come mid-year. Yes, streaming will definitely cost more in 2021.

Gambling $1M+ on your indie action film

Garry Maddox of Australia’s The Sydney Morning Herald reports that Maverick Aussie director puts up $1.6m of his own money — for killer robot movie.

“Longtime Australian commercials director and cinematographer Mark Toia came up with a preposterously ambitious idea for a debut film: a CIA test of military robots goes disastrously wrong when a group of American doctors arrive in a Cambodian jungle for humanitarian work. Toia, 56, then shot it around the world – starting in Cambodia then moving on to Vancouver, New York and Brisbane. And he and his wife put up $1.6 million of their own ‘hard cash’ to make it, without a cent from government agencies or the film industry. He spent a year seeing whether he could get backing in the US before he and wife Carolyn decided to do it all themselves. ‘I thought, you know what, I don’t really need the money. Screw it. I’m going to do this as a bit of an indie film now for the masses and sell it ourselves.‘”

The result, Monsters of Man, begins streaming online on December 8, 2020.

Do they think they’ll make any profit?

I have no idea. I decided that if I was going to do a movie, I’d just do my own just for more of a therapy, relaxation type thing. And it was therapeutic. Because we funded it ourselves, I didn’t have to listen to anyone. Because I was a painter as a child, it was like a painting for me. It was like working in my garage, painting away.

Check out the movie’s website.

My take: that’s a great concept! And kudos to Mark and Carolyn for putting up their own money. If the movie is anything like the trailer it could be good! I’m slightly spooked by the running time, though.

How to compete with Hollywood

In a Film Courage interview, indie filmmaker Geoff Ryan claims, “Your movie will never compete with Hollywood.

Given that, what should we do?

“I wanted to create something that people would walk away from thinking I’ve never seen anything like that before. A small indie like this can’t compete with Hollywood for spectacle and star power, but we can try to make much more interesting films at least. Make something that when people walk away from it they don’t just forget about it. I want to say it was Kubrick but some director I remember reading years ago said I don’t care if they love it or hate it, I want them to remember it.

Looks like he’s done that with his latest feature; see the trailer below.

My take: this is great advice! Lacking millions of dollars, we must have something else to beat Hollywood at its own game. That something is: story, attitude and ingenuity.

Liberals Want Broadcasting Act Changes

The Canadian Liberal government has tabled proposed changes to the Broadcasting Act.

The Act authorizes the Canadian Radio-television and Telecommunications Commission (CRTC) to set the rules for media in Canada. It’s a big reason there is a music business and television industry in Canada.

The Act was last updated in 1991 — almost 30 years ago — well before the rise of the Internet and online streaming.

Some of the changes the Liberals propose are:

  • Confirming that online broadcasting is covered under the Act. Currently, online undertakings that deliver audio and audio-visual content over the Internet are exempt from licensing and most other regulatory requirements. The Bill clarifies that online undertakings are within the scope of the broadcasting regulatory system. The Bill provides the CRTC with new powers to regulate online audio and audio-visual services, allowing the CRTC to create conditions of service and other regulatory requirements under which these online broadcasters would operate in Canada. It also updates the CRTC’s regulatory powers as they relate to traditional broadcasters. The Bill ensures that the Act would not apply to users of social media services, or social media services themselves for content posted by their users. The Bill ensures that online broadcasters will only be regulated when doing so would contribute in a material manner to the objectives of the Act. It will be up to the CRTC to determine which services will be regulated.
  • Updating the Broadcasting and Regulatory Policies for Canada. The Bill updates key elements of the broadcasting policy for Canada so that the broadcasting system is more inclusive of all Canadians. The Bill recognizes that the Canadian broadcasting system should, through its programming and the employment opportunities arising out of its operations, serve the needs and interests of all Canadians—including Francophones and Anglophones, Indigenous Peoples, Canadians from racialized communities and Canadians of diverse ethnocultural backgrounds, socioeconomic statuses, abilities and disabilities, sexual orientations, gender identities and expressions, and ages. The Bill underscores that programming that reflects Indigenous cultures in Canada should be provided within the Canadian broadcasting system, regardless of resource availability. It also says there must be a space for Indigenous media undertakings in the Canadian broadcasting system. Additional amendments would also serve to promote greater accessibility for persons with disabilities.
  • Creating a more flexible approach to regulation and sustainable funding for Canadian stories. The Bill facilitates a flexible approach to regulation, which will allow the CRTC to tailor the conditions of service and other regulatory requirements imposed on broadcasters by considering the Act’s policy and regulatory objectives, the variety of broadcasters in the system (and the differences between them), and determining what is fair and equitable depending on the circumstances. The Bill provides the CRTC with express powers to require broadcasting undertakings, including online undertakings, to make financial contributions to Canadian content and creators.
  • Modernizing the CRTC’s enforcement powers. The Bill provides the CRTC with new enforcement powers through an administrative monetary penalty scheme (AMPs), which aligns the CRTC’s enforcement powers with how it regulates telecommunications and spam. The objective of the AMPs scheme would be to promote compliance, not to punish.
  • Updating oversight and information-sharing provisions. The Bill ensures that the CRTC has the tools it needs as a modern regulator, so that it may gather information from stakeholders and liaise with other departments and agencies. It also ensures that commercially sensitive information that is collected by the CRTC in the course of its proceedings is properly protected.

The expected outcomes are:

  • More opportunities for Canadian producers, directors, writers, actors, and musicians to create high quality audio and audiovisual content and to make that content available to Canadian audiences.
  • An equitable and flexible regulatory framework where comparable broadcasting services are subject to similar regulatory requirements, taking into account their distinct business models and other relevant circumstances.
  • Canadian music and stories being more available through a variety of services.
  • A more diverse and inclusive broadcasting system that is reflective of Canadian society and that serves Canadians from all walks of life.

See Lexology for further analysis.

Mobile Syrup notes: “If the CRTC requires online broadcasters, such as Netflix and Spotify, to contribute to Canadian content at a similar rate to traditional broadcasters, then their contributions to Canadian music and stories could amount to up to $830 million by 2023.”

Not everyone is happy though.

The Friends of Canadian Broadcasting are: “concerned by the fact that multiple sections of the Broadcasting Act have been repealed or amended to remove protections for Canadian culture. For example, the bill moves from mandating ‘maximum or predominant use’ of Canadian creative resources to using Canadian resources ‘to the extent that it is appropriate.’ It also removes language that the broadcasting system should be owned and controlled by Canadians, opening the door to foreign companies to buy up what’s left of Canada’s traditional broadcasting system.”

Michael Geist argues:

“In the short term, this bill creates considerable uncertainty that could lead to reduced investment in Canadian film and television production and less consumer choice as potential new streaming entrants avoid the Canadian market until there is greater clarity on the cost of doing business. Canada is set to become a highly regulated market for Internet streaming services and the uncertainty regarding those costs are sure to have an impact. The regulatory process will take years to unfold with a call for public comment, a lengthy hearing, the initial decision, applications to review and vary the decision, judicial reviews, and potential judicial appeals. If any of the appeals are successful, the CRTC would be required to re-examine its decision and the process starts anew. This lengthy process could have a major impact on investment decisions. For example, if you’re a large Internet streaming company that is already investing $100 million per year in film and television production in Canada, you might delay some of that spending until there is greater clarity on what ‘counts’ for the purposes of meeting your new regulatory requirements. New entrants may also delay entering into the Canadian market given the prospect of significant new spending requirements and regulatory intervention into confidential business information. Canada was once a highly attractive market for new services, but this bill may cause new entrants to rethink their plans.

My take: change is almost always difficult. However, given that the Liberals helm a minority government, the chance of this legislation actually becoming law is very slim. More likely it will die on the Order Paper when the next election is called — I’m guessing in June 2021.

New pod design proposed for future cinemas

Jason Hellerman of No Film School alerts us to a radical design for new cinemas.

Designed by Artichect Pierre Chican in Paris, the ŌMA “concept of movie theater creates a cinematographic experience at the same time intimate, spectacular and immersive, where every seat in the house is the best seat in the house.” His credentials:

“Specialized in the realization of cultural arenas and more particularly of cinemas for more than 20 years now, Pierre Chican designed two of the most successful cinema theaters in Europe : UGC Les Halles (3.1 million tickets sold in 2019) & UGC Bercy (1.9 million tickets sold in 2019) in Paris and many others projects in France (Pathé La Valette with the first IMAX laser cinema in France) and abroad.”

Star Wars fans have pointed out this design looks very similar to the Galactic Senate Chamber.

My take: I’ve often wondered if going to the movies is destined to become an exclusive activity, like opera is today. This cinema concept is exclusively a collection of opera boxes. I notice each pod in this concept seats 15 people. If it’s just me and my wife I wonder how it will feel to join a pod with a bunch of folks there already. But of course, it will be by reservation only. If you go with your own posse of film viewers, will you still resist the temptation to not stay silent?

Thoughts on Indie Producing

Gabrielle Nadig, writing on Dear Producer, has revealed Things I Wish Someone Had Told Me Before I Became an Independent Film Producer.

She makes these six main points:

  1. Producers are Filmmakers and an essential part of the filmmaking process.
  2. You will work on each project for far longer than you think.
  3. To the industry, the director is king. (Sorry producers.)
  4. It is very unlikely that you will move up in the industry as fast as the directors you work with.
  5. There is no ladder to climb.
  6. You have to create your own opportunities.

She concludes by asking for a system that rewards indie producers for discovering and nurturing the next crop of filmmakers.

My take: thank you, Gabrielle, for a great, heart-felt post, and sharing your experience in producing so far. As to a system that rewards indie producers for discovering and nurturing emerging filmmakers, perhaps you could become their managers or agents? This would guarantee that as they advanced, you could too. Or, maybe we need an Alliance of Independent Producers that would lobby buyers on behalf of its members to make sure experienced and successful producers get better terms.

Exhibition release strategies continue to evolve

Travis Clark reports on Business Insider that Disney will debut Pixar’s ‘Soul’ on Disney Plus, at no extra charge.

“Another major movie was taken off of the theatrical release calendar as theater chains like Regal and Cineworld shut down again in the US and UK last week. On Thursday, Disney announced that its upcoming Pixar movie, ‘Soul,’ would debut on its streaming service Disney Plus on December 25 and, unlike ‘Mulan,’ would be available to subscribers at no additional cost. This isn’t the first movie intended for theaters that Disney has released straight to Disney Plus during the pandemic, others being ‘Artemis Fowl’ and ‘The One and Only Ivan.’ But ‘Soul’ is different because Disney seemed to be committing to a theatrical release until Regal and Cineworld closed again.”

This is a departure from their ‘Mulan’ strategy that required Disney Plus subscribers to pony up an extra $29.99.

In addition, Drew Dietsch reports on Giant Freakin Robot that Disney has reorganized its corporate structure and vaulted streaming to the top:

“There was some important and potentially game-changing language buried in the press release: ‘Under the new structure, the Company’s three content groups will be responsible and accountable for producing and delivering content for theatrical, linear and streaming, with the primary focus being the Company’s streaming services.’ Yes, Disney has officially announced that streaming content is going to be their primary focus going forward.

Drew wonders: “If 2021 has the Mouse house focusing on streaming, it could spell certain doom for the big movie theater chains. And maybe that will present an opportunity for Disney to swoop in and buy one of these chains. If that happens, who even knows what the future of movie exhibition will look like.”

One person who is dismayed by that possibility is film director Patty JenkinsLisa Richwine of Reuters UK reports that “Jenkins is among dozens of top Hollywood directors appealing to the U.S. government to provide a financial lifeline to cinemas. Without it, she warned, the century-old tradition of going to the movies could disappear from American culture.”

She quotes Jenkins lamenting about the closure of movie theatres:

“If we shut this down, this will not be a reversible process. We could lose movie theater-going forever. It could be the kind of thing that happened to the music industry where you could crumble the entire industry by making it something that can’t be profitable. I don’t think any of us want to live in a world where the only option is to take your kids to watch a movie in your own living room, and not have a place to go for a date.”

Nevertheless, Liana Keane reports that Jenkin’s Wonder Woman 1984 Will Go Direct To Streaming. She says:

“Warner Bros and most of Hollywood’s other major studios just announced that pretty much every big blockbuster movie left with a 2020 release date has now been delayed. The only notable exception to this massive movement of movie release dates is Wonder Woman 1984. There’s been no official announcement about any change in that movie’s release, even though the studio in charge of it, Warner Bros., announced they’re delaying everything else they had on the schedule. You haven’t heard anything about Wonder Woman 1984 being delayed for one very good reason: Warner Bros. is planning to stream it. There have been rumors for months now that WB has specifically pondered releasing Wonder Woman 1984 direct to streaming platforms and now according to my source it’s going to happen.  This is a source I’ve known for a long time and while they haven’t given me a scoop recently, they’ve been straight up with me in the past.  Still, I only have one source on this so as always any time any news item only has one source, take it with a grain of salt. My source tells me that Warner Bros. is sticking with Wonder Woman 1984’s current December 25, 2020 release date because they feel they no longer have any choice but to start releasing their movies on streaming.”

WW84 has been delayed three times and was scheduled to be released theatrically on December 25. Perhaps it will become a major day-and-date release, opening everywhere at once.

My take: Christmas Day has historically been the busiest day of the year for cinemas. But it looks like the Covid Grinch has other plans. My prediction for 2021 is that all film theatre chains will see a change of ownership to the largest streaming companies: Disney Plus, Amazon and Netflix. Imagine if your Amazon Prime membership got you free delivery, free Prime Video and free admission to the local Prime Movie Multiplex? Maybe now is the time to buy popcorn futures?

The Queen to host drive-in flicks

Jordan Hoffman reports in Vanity Fair that Queen Elizabeth’s country retreat, Sandringham Estate, will soon transform into a drive-in theater.

The screenings start this Friday with 1917 and Rocketman.

It’s not cheap — each car will cost £32.50. You can upgrade to a “deckchair, table, popcorn and separate area to the side of your vehicle in an exclusive and bigger bay for your car” for an additional £7.50 — presumably per deckchair.

There will also be “a pop-up bar with a large selection of soft drinks as well as alcoholic beverages, popcorn and snacks.”

My take: this weekend only, you say? Pity.