🎬 …Aaaaand We’re Back 🎉

👋 Good morning! Welcome aboard the Dailies.

Whether you're a seasoned subscriber or a new arrival, we're thrilled to have you here. Twice a week, on Mondays and Thursdays, we'll deliver the most important industry scoops directly to your inbox.

🎞 Here’s what’s on the reel today:

• Closeup: SAG and AMPTP Reach a Tentative Agreement

• The Reality of WGA's Performance Bonuses

• FAST’s New Groove

• Disney and Warner Bros. Discovery's Latest Financials

• Last Looks 👀: Bite-sized scoops on developing stories/projects

• Release Radar: What to watch this weekend

• Video Village 📀

• Martini Shot 🍸

But first, it’s Thursday, so let’s take a look at what people were watching this week… 👀

MOST STREAMED THIS WEEK

…Aaaaand We’re Back 🎉
SAG and AMPTP Reach a Tentative Agreement

Good news! A new deal has been reached between SAG-AFTRA and the AMPTP. The sun has set on the 118-day strike, which ended this morning at 12:01 am.

This resolution comes on the heels of a high-stakes negotiation saga that began when studio execs returned to the negotiating table on October 24. The details of the tentative agreement aren’t yet clear, and more details will likely emerge in the coming days. In a statement made by SAG last night, the union said they have reached a “deal of extraordinary scope,” which includes gains in the following areas:

🤖 The AI Issue: Studios now have the ability to digitally replicate actors for future roles. In the final days of negotiations, SAG insisted that studios must get consent and negotiate terms for every use of these scans, including posthumously, ensuring actors' estates have a voice. Studios were pushing for fewer restrictions on using these scans, arguing that consent from a deceased actor's “authorized representative” should be sufficient—a point the union worried might lead to misuse.

SAG has been steadfast in its commitment to refining the language concerning AI to safeguard its members, even if it meant slowing down negotiations in the home stretch.

👇 Our friend Brendan Bradley broke down this issue and why it’s important for actors to understand:

brendanabradley

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💵 Streaming Residuals Bonus Mechanism: Another point of contention has been how to calculate and distribute a new bonus for actors appearing in the most-watched shows on streaming platforms. The studios have offered a 100% bonus on standard streaming residuals for actors who are part of such successful series.

📈 Minimum Rate Increases: There has been debate over the increase in minimum rates for actors. The studios have offered what they characterize as the largest increase in 40 years, which is expected to be in the range of 7%-8%. This is a concession from SAG’s initial request for an 11% increase but is still more than the 5% that was agreed with the writers and directors unions.

In addition, SAG’s statement also mentioned that the deal includes:

• Substantial increases for pension and health caps

• Pay increases for background actors

• Contract provisions protecting diverse communities

What's Next? Many are waiting anxiously to see the actual deal terms. These will be made public once the agreement has been reviewed by the SAG-AFTRA National Board this coming Friday, Nov. 10.

After that, 160,000 SAG members will called to vote on ratification. Should the membership approve the agreement, it would quickly be implemented. Conversely, a rejection would mean a return to negotiations with the AMPTP for the union’s representatives.

The strike’s end is a hopeful sign for immediate return to production. As the industry exhales, this tentative agreement penned by SAG and the studios signals that all can return to work as entertainment enters into a new era.

✍🏼🤔 The Reality of WGA's Performance Bonuses: In the world of streaming, the recent WGA contract plays hardball, promising bonuses to writers if their shows score with viewers, yet only a sliver might actually cash in. Bloomberg’s recent deep dive reveals that less than 5% of Netflix originals from 2022 would have hit the bonus benchmark. A show needs to captivate at least 20% of U.S. Netflix viewers within 90 days to line writers' pockets. Here’s the thing: the figure of ‘less than 5%’ includes shows not even covered by the WGA deal, so the likes of a hit docuseries wouldn’t even be eligible for such a bonus. As Netflix remains silent, writers are left to speculate whether their work will bring in the extra pay under these rules starting in 2024.

📺💸 FAST’s New Groove and the Ad Shift: Jonathan Katz, the brain behind Bounce TV and Laff, is now launching Free TV Networks. Starting in January, the company will roll out two digital channels: the365, celebrating Black culture, and Outlaw, which will dust off classic Westerns for about 80% of American viewers. These channels boast backing from Warner Bros. Discovery, Lionsgate, and Gray Television.

Katz's new venture taps into the rising tide of advertiser investment in Free Ad-Supported Streaming Television (FAST), echoed by a XUMO and Comcast Advertising report. An impressive 84% of buyers plan to increase their FAST investments in 2024, positioning Katz to capitalize on a significant shift in consumer viewing preferences. As streaming services hike subscription fees, FAST's cost-effective appeal and varied programming that mirrors conventional TV draw viewers. Industry experts suggest that combining FAST with linear TV, featuring tailored content, could transform the entertainment industry.

📊💰 Disney and Warner Bros. Discovery's Latest Financials: In recent earnings calls Disney and Warner Bros. Discovery released their financial results with contrasting narratives. Disney surpassed expectations with $21.2 billion in revenue, driven by strong Disney+ growth and higher profitability in parks and experiences. It's also looking to reach $7.5B in cost-cutting and plans to take on full Hulu ownership.

Warner Bros. Discovery reported a mixed financial picture, showcasing solid progress on debt reduction and free cash flow, but also highlighting ongoing struggles with their legacy cable TV business and stalled streaming subscriber growth. On the positive side, WBD has significantly cut costs and reduced its net loss from $2.3B last year to $417M this quarter. Streaming turned a profit for the first time, earning $111M. However, advertising revenue is down significantly, especially in linear TV. Moreover, streaming subscriber growth has stagnated, with a net loss of subscribers in the U.S. but a modest international gain. The company plans increased marketing efforts in 2024 to address these issues, particularly to reduce churn and capitalize on younger demographics through platforms like CNN MAX and B/R SPORTS.

Development 🗒️

• Nintendo announces a live-action 'Legend of Zelda' film directed by Wes Ball and co-financed with Sony Pictures. (more)

• Apple TV+ announces an original ‘Peanuts’ movie set to begin production in 2024. (more)

• Paramount is developing a new remake of 'The Longest Yard.’ (more)

• Bleecker Street secures the U.S. rights to the family comedy ‘Ezra,’ starring Robert De Niro and Rose Byrne. (more)

• MGM+ has ordered ‘The Wonderland Murders,’ a four-part true crime docuseries about the infamous 1981 Wonderland Avenue murders in LA. (more)

• Venk Potula joins the indie musical 'Key Change.' (more)

✅ Renewed & Canceled ❌

• ‘The Bear’ is renewed for S3 at Hulu. (more)

• ‘The Circle’ is renewed for S6 and S7 at Netflix and moves production to Atlanta. (more)

• Lone Scherfig's drama 'The Shift' is renewed for S2. (more)

• MGM+ cancels the series 'Chapelwaite' after S1. (more)

• ‘The Circus’ is ending after eight seasons on Showtime. (more)

Releases 📅

• Zack Snyder's 'Rebel Moon - Part One' is set to have a limited one-week 70mm theatrical release in four major cities before its Netflix premiere. (more)

• 'Bookie,' a dark comedy by Chuck Lorre featuring Sebastian Maniscalco and Charlie Sheen, premieres Nov. 30th on MAX. (more)

• ‘Venom 3’ release moved to November 2024. (more)

Business 🤝

• Disney+ and Hulu integration will begin in December. (more)

• Endeavor's Q3 revenue hit $1.34B, offsetting a WME downturn from strikes with robust sports sector gains. (more)

• Justin Levy, Brian Kavanaugh-Jones, and Fred Berger establish Station26, a production company with first-look deals at A+E Studios and Range Studios. (more)

• Disney names Hugh F. Johnston, PepsiCo’s CFO, as its new CFO. (more)

• Amazon sold out all ad spots for its Black Friday NFL game and adjacent Thursday Night Football broadcasts on Prime Video. (more)

• North Road Company acquires a significant stake in Questlove and Black Thought’s Two One Five Entertainment. (more)

Other News 🚨

• CBS News launches a new initiative aimed at identifying and fact-checking AI-generated deepfakes and misinformation in the media landscape. (more)

What to watch this weekend? 👀

THEATRICAL 🎥

• The Holdovers: Alexander Payne’s new period comedy drama starring Paul Giamatti.

• Dream Scenario: Nicolas Cage’s new black comedy fantasy.

• The Marvels: The latest installment in the Marvel Cinematic Universe.

STREAMING 📺

• The Killer: (Netflix) David Fincher’s anticipated action thriller starring Michael Fassbender.