🎬 Thrifting in Hollywood 💰

👋 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:

• Thrifting in Hollywood

• AMC’s Cash Crunch

• The Complexity of Strike Savings

• Marvel VFX Workers Seek Unionization

• Battle for Streaming Revenue

• Disney forms AI Task Force

• CW Remains Confident Amid Strike

• Paramount CEO Hints at Streaming Bundles

• 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

Thrifting in Hollywood
Private Equity’s Growing Stake in the Industry

If you didn't already catch the news, Simon & Schuster just got sold by Paramount Global for a whopping $1.6 billion! Ka-ching! 💸 And guess who's behind this mega deal? It's a private equity firm called KKR.

Yup, in the last decade, private equity has found a glittering new treasure trove: Hollywood! 🎬 These money wizards have been waving their cash wands, turning not-so-hot companies into gold mines. Just ask Skydance Media or Legendary Entertainment, who received a $760M investment by Apollo Private Equity Funds last year. 💰

So where else might we see these financial giants play fairy godmother? Let's dive in!

Sports Alert! 🏈 

In a recent interview, Disney's big boss, Bob Iger, said he's "bullish on sports." Disney, the proud parent of ESPN, is looking for a new buddy to team up with on live sports. When asked further on what a “strategic partner” may look like when it comes to live sports coverage, Iger said “anything’s on the table.” Who knows? Maybe a private equity firm will step into the game. 🏀

Think it sounds crazy? Well, RedBird Capital teamed up with the NFL earlier this year, so anything's possible!

Disney's Yard Sale? 🐭 

Earlier in July, Iger also referenced parts of Disney that aren't "core" anymore and might be up for grabs. That same week, Iger put up about a third of the company up for sale in his effort to downsize. Could private equity be the knight in shining armor for the Mouse House? With Iger mingling with big investors, don't count it out.

Oldies but Goodies 🎞️ 

Private equity isn't just about the new stuff. They're also thrift shopping for stakes in classic TV shows and movies. 🚀 And with strikes halting new content, selling off existing catalogs might just be the smart move. These kinds of deals wouldn’t be out-of-the-ordinary amid recent deals in which musical artists and songwriters have sold a stake in their publishing catalog to private equity firms.

In a town that loves reinvention, these financial fairy godmothers are painting the town red. Will it be a hit or a flop? Either way, these money moguls are shaking things up. 🎨

🎬 AMC CEO Warns of Cash Crunch Despite Box Office Boom 🎬 Despite the roaring success at the box office, AMC Entertainment's CEO Adam Aron is sounding the alarm about the theater chain's finances. The Q2 earnings looked impressive, and record-breaking months were observed in June and July. But behind the scenes, there's a court battle with shareholders over equity sales approval. Aron acknowledges the current liquidity of $643 million, but warns about potential cash burn during the uncertain winter months, exacerbated by ongoing strikes. He emphasizes the importance of raising fresh capital to ensure a robust recovery, avoid industry pitfalls, and invest in improvements like new theaters, bars, and large-format screens. The goal: don't be caught cashless in the reel world! 💰

🔗 Strike Savings for Studios: A Complex Picture 🎬 Hollywood's ongoing writers' and actors' strikes are indeed leading to short-term financial savings for major studios in terms of halted production, but the reality is more intricate. While Warner Bros. Discovery reported a savings of "low $100-million range" due to halted production, it's relatively minor compared to their overall financials. The temporary benefits of the strikes are overshadowed by potential long-term damages, particularly for legacy studios facing industry challenges such as cord-cutting, declining TV ratings, and an evolving box office landscape. With the fall broadcast lineup leaning toward reality TV, legacy studios are grappling with audience retention and softening advertising, while the push for original content remains vital for box office success. Despite the short-term savings, studios recognize the importance of resolving the strikes for both their financial image and public opinion, which currently seems to favor striking actors and writers over studios. The ultimate challenge is reconciling the parties' fundamentally differing views on minimum staffing and pay based on streaming show success, against the backdrop of a changing entertainment landscape. 📽️🤝

🦸‍♂️ Marvel VFX Workers Seek Unionization 🦸‍♂️ Over 50 visual effects professionals employed directly by Marvel Studios have filed for a unionization election with the National Labor Relations Board through the International Alliance of Theatrical Stage Employees (IATSE). These VFX workers, primarily based in Atlanta, Los Angeles, and New York, aim to be represented by the union, highlighting concerns over working conditions and equitable treatment. While Marvel has yet to acknowledge the unionization effort, this move represents a significant push within the VFX industry, which has historically been mostly non-union, for better protections and benefits. This development aligns with broader unionization trends in the entertainment sector and across industries in the United States. 👊

🎬 Streaming Revenue Sharing Battle: Actors vs. Studios 🎬 As SAG-AFTRA members continue their strike, negotiations for a new contract remain at a standstill. A key point of contention is SAG-AFTRA's proposal for a 2% cut of streaming revenue from successful shows and films, a proposition met with resistance from the Alliance of Motion Picture and Television Producers (AMPTP). The union asserts that the changing landscape of the streaming era necessitates this move. SAG-AFTRA's proposal includes using the "content valuation" tool from Parrot Analytics to determine revenue sharing, but the AMPTP has raised objections to both the concept and the choice of metric. While no talks are currently scheduled, both sides are navigating the complexities of the streaming revenue sharing debate. 💰🎥

🔍 Disney Forms AI Task Force Amid Hollywood's Tech Debate 🤖 Disney has established a task force dedicated to exploring the potential applications of artificial intelligence (AI) across its entertainment domains. The task force, set up before the ongoing Hollywood writers' strike, aims to develop in-house AI solutions and establish partnerships with startups. Disney's recent job postings also reflect its AI ambitions. However, this move comes amidst the backdrop of discussions around AI's impact on Hollywood, with concerns being raised by writers and actors about job security. The VFX industry, a part of the broader entertainment landscape, has particularly been exploring AI to control escalating production costs and improve customer experiences in its parks business. 🎬🤯

📺 Nexstar CEO Confident Amid CW's Strike Woes 📺 Nexstar Media Group CEO Perry Sook isn't sweating over the writer and actor strikes affecting The CW's shows. Despite delays in four scripted programs due to the strikes, Sook remains upbeat, pointing out that most of the fall slate was already developed and focused on unscripted content. The CW's acquisition strategy for live sports, described as a "Moneyball" approach, has brought value-priced, broad-audience shows to the network and led to profitability goals by 2025. With the addition of seasoned Fox vet Mike Biard as COO, Sook believes The CW is on a solid path, even in the face of a chaotic environment. 📊📣

🔗 Paramount CEO Hints at Expanded Streaming Bundles Amid Positive Results 📺 Paramount Global CEO Bob Bakish has expressed openness to collaborating with other media players to create more comprehensive streaming bundles, a move he believes enhances consumer engagement. Bundling, according to Bakish, has been a proven method of value creation in media, and with Paramount+'s integration of Showtime, the company is looking at bundling as part of its streaming strategy. The quarterly report showed narrower streaming losses but a modest increase in Paramount+ subscribers, hitting 61 million. The company's experience with the Showtime integration revealed cost savings and improved consumer engagement, with bundled customers consuming over 40% more content. With the streaming landscape becoming more complex and profitability taking precedence, bundling might provide Paramount a competitive edge. 📈🎥

• The writers strike reaches day 100, and is seen as a “milestone of shame” by WGA. 😔 (more)

• MasterChef renewed for 14th season at Fox. (more)

• ‘Oppenheimer’ extends IMAX 70mm run due to popular demand. (more)

• Warner Bros. Discovery plans to simulcast live games on cable TV and MAX on new sports tier this fall. (more)

• IMG locks multiple international broadcast deals for Saudi Pro League. ⚽️ (more)

• Dennis Miller to remain CW president until 2027. (more)

• ‘The Little Mermaid’ to be released on Disney+ in early September. (more)

• Angus Cloud receives heartfelt tribute added to ‘Euphoria’ episodes on MAX. (more)

• HBO picks up to series Sam Mendes and Armanda Iannucci’s ‘The Franchise’ comedy. (more)

• Paramount Global has a tough Q2 in film. (more)

• Sony Music ramps up documentary production with films coming on Celine Dion, Carlos Santana, and more. (more)

• Variance Films acquires Post-WWII drama ‘Amerikatsi’ from Michael A. Goorjan. (more)

• Helen Hunt, Beau Bridges and Julia Rehwald to star in sci-fi podcast ‘Aletea’ for Audible. (more)

• ‘Talk 2 Me,’ sequel to ‘Talk to Me’ breakout horror film, in the works from A24 and Danny and Michael Philippou. (more)

• Netflix to reopen New York City’s famed Paris Movie Theater. (more)

• ‘Barbie’ sets release in Saudi Arabia after potential ban in Middle East. (more)

• Hollywood’s animal handlers find themselves in a bind amid the current strikes. (more)

• ‘Sucession’ and ‘The Bear’ dominate TCA Awards. (more)

• Prices of Disney+, Hulu get bumped up. (more)

What to watch this weekend? 👀

THEATRICAL 🎥

• Jules: Tranquil life in a small Pennsylvania town takes a surprising turn when an alien UFO crashes into one man’s backyard. Starring Ben Kingsley.

• The Pod Generation: Living in the not-so-distant future, a New York couple takes a wild ride to parenthood after landing a coveted spot at the Womb Center, which offers couples a convenient and shareable pregnancy by way of detachable, artificial wombs, or pods. Starring Emilia Clarke and Chiwetel Ejiofor.

• The Last Voyage of Demeter: Dracula's unholy presence dooms the crew of the merchant ship Demeter as it sails from Carpathia to London.

STREAMING 📺

• Heart of Stone: (Netflix) Gal Gadot plays Agent Rachel Stone, the sole intelligence operative guarding her worldwide peacekeeping agency against the impending loss of its prized and perilous asset, known as "The Heart."

• Red, White & Royal Blue: (Prime Video) A romantic comedy that traces the journey of two sons from influential families who shift from rivals to lovers.