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    Hollywood Strikes: Labor Day Looms as Crisis Point

    Ongoing strikes could disrupt the entertainment industry in fundamental ways, putting the 2024 box office and the fall broadcast lineup in jeopardy.In May, when 11,500 movie and television writers went on strike, Hollywood companies like Netflix, NBCUniversal and Disney reacted with what amounted to a shrug. The walkout wasn’t great, but executives had expected it for months. They could ride it out.The angry response from Hollywood’s corporate ranks when actors went out on Friday was dramatically different. What began as an inconvenience has become a crisis.For a start, the actors’ union is much more powerful than the writers’ guild, with a membership of about 160,000 that includes world-famous celebrities studied in the art of delivering messages to captivated audiences. The film and TV scripts that studios had banked in case of a writers’ strike have been suddenly rendered inert, deprived of actors to bring them to life. Numerous big-budget movies that had been shooting had to shut down immediately, including “Twisters,” “Venom 3,” “Deadpool 3” and “Gladiator 2.”In interviews, three studio chairs who spoke on condition of anonymity because of the sensitivity of the labor situation, said Hollywood’s content factories could sit idle for little more than a month — roughly until Labor Day — until there would be a serious impact on the release calendar for 2024, particularly for movies. A work stoppage that stretches into September could force studios to delay big projects for next year by six months, making 2024 resemble the ghost town of recent memory set off by the Covid-19 pandemic.Studios had just gotten the release schedule looking normal again, with one big movie following another. Another significant lull in offerings may be devastating for theaters. This year’s box office has already been underwhelming and, with striking actors barred from publicity efforts, films scheduled for the second half of 2023 could be affected — especially those with awards aspirations. One of the studio executives on Friday predicted it could imperil at least one of the national cinema chains.Bobbie Bagby Ford, the chief creative officer and executive vice president of B&B Theatres, a midlevel chain with more than 50 locations in 14 states, said the strikes “have impacted the industry at a difficult time.”“The duration of the ongoing strike will play a significant role in its impact on cinemas,” Ms. Bagby Ford said. “If it remains short enough to prevent an overwhelming backlog of movies, the situation can be managed.”Greg Marcus, chief executive of the Marcus Corporation — which owns the fourth-largest theater chain in the country — agreed that the strikes were unnerving but said they were less threatening to the industry than the pandemic.“Depending on the length of time, there could be a gap in a year,” Mr. Marcus said. “But it’s not like being closed for months on end, people debating the value of theatrical, and then big gaps because of production delays.”Labor Day will arrive in a heartbeat, which would seem to prompt studios to break the standstill with the actors sooner rather than later. But there’s a problem: Studio executives were genuinely surprised by the Screen Actors Guild’s reaction to their proposed terms. They felt they had made significant concessions and were stunned by the union’s rhetoric, especially since they were able to amicably negotiate a lucrative new contract in 2020.The proposed terms included increased pay, protections around the audition process and more favorable terms for pension and health contributions. They also offered that dancers receive an on-camera rate for rehearsal days.In particular, the studios — acknowledging in private conversations that they had made a mistake by largely ignoring the writers’ demands for guardrails around artificial intelligence — proposed terms for use of A.I. that their negotiators said would protect actors.But it wasn’t enough to avert a strike. Duncan Crabtree-Ireland, the actors’ chief negotiator, said in an interview on Saturday that the studio’s proposal was unreasonable. The artificial intelligence terms jeopardize “the entire field of acting,” Mr. Crabtree-Ireland said, adding that studios also weren’t offering actors revenue participation in streaming.“Those are the core issues,” Mr. Crabtree-Ireland said. “And the fact that the companies won’t move on them reflects a colonial attitude toward the workers who are the entire basis of the existence of their companies.” He said actors want to begin bargaining again.The Alliance of Motion Picture and Television Producers, which negotiates on behalf of the studios, disputed Mr. Crabtree-Ireland’s characterization of its members’ attitudes, citing terms of its proposal including a “groundbreaking A.I. proposal that protects actors’ digital likenesses.”An empty red carpet for Disney’s premiere of “Haunted Mansion” in Anaheim, Calif., on Saturday.Allison Dinner/EPA, via ShutterstockThe frustration on the other side of the bargaining table was evinced by comments made on Thursday by Robert A. Iger, Disney’s chief executive, who said during an interview on CNBC that workers were being “unrealistic.” Pouring gas on the fire was an article on the show business website Deadline that quoted an anonymous studio executive, who threatened to “bleed out” writers until they “start losing their apartments.” The studio alliance said the anonymous executive did not speak for its members.Though some executives see a brief stoppage as an opportunity to slash costs, a long-term shutdown has the potential to cause havoc in an entertainment industry already buffeted by the rise of streaming and struggles at the box office.“While media execs try to spin the dual strikes as a positive as production spending stops, investors are far more concerned that this will be a long strike that hurts the performance of already completed movies and TV series,” said Rich Greenfield, an analyst at the research firm LightShed Partners.If the twin strikes drag on for just one or two months, companies will probably seize on the shutdown as an opportunity to save cash that they otherwise would have been spending on preproduction — the work done before shooting starts — and bidding on scripts, said Michael Nathanson, an analyst at SVB MoffettNathanson who focuses on the media and entertainment industries. Some of those costs will be incurred later anyway, he noted.They can also take a second look at the shows and films they have in the pipeline, pruning ones that are too costly, Mr. Nathanson said. He compared a brief strike to a halftime break for a losing team that needs to draw up a new strategy.The strike also threatens lucrative, long-term deals struck by media companies during the streaming boom, when they were willing to shell out astounding sums to lure creators like Shonda Rhimes, Ryan Murphy and J.J. Abrams. Some long-term deals have force majeure clauses, which take effect on the 60th or 90th day of a strike, allowing the studios to terminate their contracts without paying a penalty. Mr. Greenfield said those clauses could theoretically let studios get expensive deals off the books, but invoking them would jeopardize relationships with top talent in the future.If actors aren’t back to work by the fall, it will hurt network television, which needs them for new shows coveted by advertisers, Mr. Nathanson said. He added that traditional media companies based in the United States are at a disadvantage compared with Netflix, the dominant streaming company, which can take advantage of its production facilities around the world.“It’s like if the United Auto Workers go on strike, and all of a sudden you see more cars from Japan and Germany on the road,” Mr. Nathanson said.Publicly, studio executives are urging Hollywood to get back to work. Mr. Iger said last week in an interview from the annual Sun Valley conference for business titans that the strike would have a “very damaging” effect on the entertainment industry.There’s little indication, however, that a deal is close.The negotiating parties have all said they want to reach a fair agreement, placing the blame for the standstill on the other side. But they all acknowledge privately that if Hollywood doesn’t thaw out in time, everyone will get frostbite.”Making nothing as a cost-saving strategy is foolish with the fall TV season rapidly approaching and advertisers and consumers expecting new programming,” said Ellen Stutzman, the chief negotiator for the Writers Guild of America. More

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    In Hollywood, the Strikes Are Just Part of the Problem

    The entertainment industry is trying to figure out the economics of streaming. It’s also facing angst over a tech-powered future and fighting to stay culturally dominant.Existential hand-wringing has always been part of Hollywood’s personality. But the crisis in which the entertainment capital now finds itself is different.Instead of one unwelcome disruption to face — the VCR boom of the 1980s, for instance — or even overlapping ones (streaming, the pandemic), the movie and television business is being buffeted on a dizzying number of fronts. And no one seems to have any solutions.On Friday, roughly 160,000 unionized actors went on strike for the first time in 43 years, saying they were fed up with exorbitant pay for entertainment moguls and worried about not receiving a fair share of the spoils of a streaming-dominated future. They joined 11,500 already striking screenwriters, who walked out in May over similar concerns, including the threat of artificial intelligence. Actors and writers had not been on strike at the same time since 1960.“The industry that we once knew — when I did ‘The Nanny’ — everybody was part of the gravy train,” Fran Drescher, the former sitcom star and the president of the actors’ union, said while announcing the walkout. “Now it’s a walled-in vacuum.”At the same time, Hollywood’s two traditional businesses, the box office and television channels, are both badly broken.This was the year when moviegoing was finally supposed to bounce back from the pandemic, which closed many theaters for months on end. At last, cinemas would reclaim a position of cultural urgency.But ticket sales in the United States and Canada for the year to date (about $4.9 billion) are down 21 percent from the same period in 2019, according to Comscore, which compiles box office data. Blips of hope, including strong sales for “Spider-Man: Across the Spider-Verse,” have been blotted out by disappointing results for expensive films like “Indiana Jones and the Dial of Destiny,” “Elemental,” “The Flash,” “Shazam! Fury of the Gods” and, to a lesser extent, “The Little Mermaid” and “Fast X.”The number of movie tickets sold globally may reach 7.2 billion in 2027, according to a recent report from the accounting firm PwC. Attendance totaled 7.9 billion in 2019.It’s a slowly dying business, but it’s at least better than a quickly dying one. Fewer than 50 million homes will pay for cable or satellite television by 2027, down from 64 million today and 100 million seven years ago, according to PwC. When it comes to traditional television, “the world has forever changed for the worse,” Michael Nathanson, an analyst at SVB MoffettNathanson, wrote in a note to clients on Thursday.Disney, NBCUniversal, Paramount Global and WarnerBros. Discovery have relied for decades on television channels for fat profit growth. The end of that era has resulted in stock-price malaise. Disney shares have fallen 55 percent from their peak in March 2021. Paramount Global, which owns channels like MTV and CBS, has experienced an 83 percent decline over the same period.On Thursday, Robert A. Iger, Disney’s chief executive, put the sale of the company’s “noncore” channels, including ABC and FX, on the table. He called the decline in traditional television “a reality we have to come to grips with.”In other words, it’s over.The latest installment of “Mission: Impossible” is opening this week and could be a rare bright spot at the box office.Mark Abramson for The New York TimesAnd then there is streaming. For a time, Wall Street was mesmerized by the subscriber-siphoning potential of services like Disney+, Max, Hulu, Paramount+ and Peacock, so the big Hollywood companies poured money into building online viewing platforms. Netflix was conquering the world. Amazon had arrived in Hollywood determined to make inroads, as had the ultra-deep-pocketed Apple. If the older entertainment companies wanted to remain competitive — not to mention relevant — there was only one direction to run.“You now have, really in control, tech companies who haven’t a care or clue, so to speak, about the entertainment business — it’s not a pejorative, it’s just the reality,” Barry Diller, the media veteran, said by phone this past week, referring to Amazon and Apple.“For each of these companies,” he added, “their minor business, not their major business, is entertainment. And yet, because of their size and influence, their minor interests are paramount in making any decisions about the future.”A little over a year ago, Netflix reported a subscriber loss for the first time in a decade, and Wall Street’s interest swiveled. Forget subscribers. Now we care about profits — at least when it comes to the old-line companies, because their traditional businesses (box office and channels) are in trouble.To make services like Disney+, Paramount+ and Max (formerly HBO Max) profitable, their parent companies have slashed billions of dollars in costs and eliminated more than 10,000 jobs. Studio executives also put the brakes on ordering new television series last year to rein in costs.WarnerBros. Discovery has said its streaming business, anchored by Max, will be profitable in 2023. Disney has promised profitability by September 2024, while Paramount had not forecast a date, except to say peak losses will occur this year, according to Rich Greenfield, a founder of the LightShed Partners research firm.Giving in to union demands, which would threaten streaming profitability anew, is not something the companies will do without a fight.“In the short term, there will be pain,” said Tara Kole, a founding partner of JSSK, an entertainment law firm that counts Emma Stone, Adam McKay and Halle Berry as clients. “A lot of pain.”Every indication points to a long and destructive standoff. Agents who have worked in show business for 40 years said the anger surging through Hollywood exceeded anything they had ever seen.“Straight out of ‘Les Miz’” was how one longtime executive described the high-drama, us-against-them mood in a text to a reporter. Photos circulating online from this past week’s Allen & Company Sun Valley media conference, the annual “billionaires’ summer camp” attended by Hollywood’s haves, inflamed the situation.On a Paramount Pictures picket line on Friday, Ms. Drescher attacked Mr. Iger, something few people in Hollywood would dare to do without the cloak of anonymity. She criticized his pay package (his performance-based contract allows for up to $27 million annually, including stock awards, which is middle of the road for entertainment chief executives) and likened him and other Hollywood moguls to “land barons of a medieval time.”“It’s so obvious that he has no clue as to what is really happening on the ground,” she added. Mr. Iger had told CNBC on Thursday that the demands by the two unions were “just not realistic.”In the coming weeks, studios will probably cancel lucrative long-term deals with writers (and some actor-producers) by virtue of the force majeure clause in their contracts, which kick in on the 60th or 90th day of a strike, depending on how the agreements are structured. The force majeure clause states that when unforeseeable circumstances prevent someone from fulfilling a contract, the studios can cancel the deal without paying a penalty.Eventually, contracts with the Writers Guild of America and SAG-AFTRA, as the actors’ union is known, will be hammered out.The deeper business challenges will remain.Nicole Sperling More

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    Ticketmaster Pauses Taylor Swift’s Eras Tour Sale in France

    Fans trying to purchase tickets to six of the pop superstar’s concerts faced long queues and technical issues before the company said that a new on-sale time would be announced.Ticketmaster has once again cracked under the weight of a Taylor Swift ticket sale — this time in France.As French fans prepared on Tuesday to purchase tickets to six concerts in May and June 2024 on Swift’s Eras Tour — four shows in Paris, two in Lyon — Ticketmaster’s website displayed a gigantic queue of customers ready to buy; one screenshot appeared to tell a fan that 1,023,504 shoppers were in line ahead of them.Soon, Ticketmaster announced that sales for those shows had been placed on “pause.” The company said that a new on-sale time would be announced, and that “all codes not already used will remain valid.” But some fans’ social media posts seemed to show technical errors on Ticketmaster’s website, including a progress icon that “keeps spinning and spinning and spinning,” as one fan — speaking English with an American accent, but with 762 euros’ worth of tickets in their shopping cart — put it.A few hours later, the French branch of Ticketmaster offered some more detail on social media, blaming the problem on a “third-party provider” that the company did not identify, and adding that tickets were still available. A representative of Live Nation Entertainment, Ticketmaster’s corporate parent, said that the provider works with Ticketmaster only in France.The situation in France appeared to be a frustrating repeat of the problems that plagued Swift’s North American presale in November, when an influx of millions of fans — and bots — overwhelmed Ticketmaster’s systems, and fans reported issues like tickets in their shopping carts disappearing before they could be purchased. Ticketmaster shut down its public sale as a result, though the company also said it had sold more than two million tickets to the tour in a single day.Problems like those at Swift’s presale in November — as well as long-simmering concerns over Ticketmaster and Live Nation’s market dominance — led to a brutal Senate Judiciary hearing in January. Senators from both parties flatly called the company a monopoly and were skeptical of an executive’s explanation that Ticketmaster was unable to defend itself against an onslaught of bots during Swift’s presale.“This is unbelievable,” Senator Marsha Blackburn, Republican of Tennessee, said at the hearing. “Why is it,” she added, “that you have not developed an algorithm to sort out what is a bot and what is a consumer?”Yet the demand for Swift tickets has been extraordinary, with Swift selling out stadiums everywhere she plays and tickets going for thousands of dollars on the secondary market. She is scheduled to complete the North American leg of her tour next month, then play in Latin America, Asia and Europe.The Justice Department has separately been conducting an antitrust investigation of Live Nation. The Justice Department has not confirmed that investigation, but Live Nation’s chief executive, Michael Rapino, has spoken about it openly. More

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    ‘Barbenheimer’: Fans Plan to See ‘Barbie’ and ‘Oppenheimer’ Back to Back on July 21

    The “Barbie” and “Oppenheimer” movies look very different. But some fans are planning a double feature for their release on July 21.Barbie is everything. He’s just … Robert Oppenheimer.That’s right. The main character competing with Barbie for attention right now isn’t Ken, her plastic significant other. It’s the man who designed the atomic bomb.Fans have been waiting for this summer’s release of two movies — “Barbie,” from Warner Bros. and directed by Greta Gerwig, and “Oppenheimer,” from Universal Pictures and directed by Christopher Nolan — which are both coming out on July 21, and they have been poking fun at the stark contrast in the movies’ themes, moods and color schemes.The result of the release schedule is a mash-up many people may not have seen coming: Barbenheimer. Or Boppenheimer, if you will.Only one month left. pic.twitter.com/n6PKQBtTcc— Film Updates (@FilmUpdates) June 20, 2023
    “Oppenheimer” is Nolan’s prestige movie based on “American Prometheus,” a biography of Oppenheimer, the scientist who led the Manhattan Project, which during World War II produced the first atomic bombs. The trailers for that film, with intense music and suspenseful scenes starring a pensive-looking Cillian Murphy as Oppenheimer, are in stark contrast with the pink and sparkly trailers for “Barbie,” which show Margot Robbie as the doll living in Barbieland before setting off on an adventure into the real world.The two characters could hardly be more different (does this Venn diagram even have a middle?). And yet, Robbie and Murphy are appearing on T-shirts and sweaters together.Memes, videos and online chatter have flooded social media, and some people are making plans to see the two movies on the same day. A debate about which order to see them in — “Barbie” first to start the day off light, or “Oppenheimer” first, to end on a more cheerful note — hasn’t been settled.The curious crossover is also giving rise to real-life merchandise. A Google search for “Barbenheimer T-shirt” brings tens of thousands of results, and sellers on Etsy have designed their own versions. Some feature Robbie and Murphy, while others combine Barbie’s pink font with a pink drawing of an atomic cloud.One such T-shirt, and an early entry in the crowded field, is a simple split-screen combination of the two movie logos, spelling out “Barbenheimer” with the release date of the films.Hunter Hudson, 23, a filmmaker in San Antonio, said he originally designed and created the shirts for him and his friends to “roll up to the Barbenheimer double feature” on July 21. But when he posted pictures of the shirt on his Twitter feed, he said, it took off beyond his expectations.“I normally get about three or four likes on anything I post,” Hudson said. But after sharing a few mock-ups of the shirt, he woke up one morning to hundreds of messages from people asking him if they could buy it.Hudson makes the shirts himself, with a friend, and charges $40. So far he said he had made about 150 shirts, with a second batch of about 70 more on the way. It takes him about 45 minutes to an hour to make one T-shirt, which he does by cutting two shirts in half, pinning them together and sewing and pressing them.“I had a couple of movie theaters reach out to me privately to do bulk orders for employees,” he said. “It’s been overwhelmingly positive.”This kind of organic marketing is probably good for both films, said Robert Mitchell, the director of theatrical insights at Gower Street, a company that does predictive analysis for the film industry.Not that the studios’ marketing has been lacking: There are life-size cardboard Barbie boxes in theaters for people to take pictures and a selfie generator. There have been collaborations with multiple brands: The frozen yogurt chain Pinkberry is offering a Barbie flavor, Gap has a line of Barbie-themed clothes, and Airbnb is offering a real-life Barbie Dream House in Malibu. Warner Bros. declined to comment on the movie’s marketing efforts.What all this hype means for box office results for either film is unclear, and awareness doesn’t always translate into attendance, Mitchell said. Predictions for opening weekends are tricky and a lot can still happen before July 21, said David Gross, a movie consultant who publishes a newsletter on box office numbers. Some conservative industry estimates, he said, have “Barbie” opening between $55 million and $65 million in the United States and Canada, and “Oppenheimer” between $40 million and $50 million. Both of those estimates would be strong for a fantasy comedy and a historical drama, neither of which are sequels. Superhero, big action and big animation movies usually open higher, Mr. Gross said.Still, the hype around the films could be beneficial to the numbers. “Every time ‘Barbie’ released a trailer, ‘Oppenheimer’ would start trending,” Mitchell said.“They’re so vastly different,” he said, “that they allow for the narrative that popped up organically: This would be strangest double bill ever.” That online conversation, he said, “is pretty much a gift for distributors.”While social media is full of people showing off their tickets to see the double feature, it’s unclear how many really will. “But it shouldn’t matter,” Gross said. “Audiences are going to find them, and both films are going to do extremely well.” More

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    Tony Awards Give a Box Office Boost to Prize-Winning Shows

    “Leopoldstadt,” which was named best play, and “Kimberly Akimbo,” which won best musical, saw considerable increases in ticket sales.“Leopoldstadt” and “Kimberly Akimbo,” the two shows that took home top Tony Awards last week, saw big bumps at the box office in the days following that ceremony.The increases for the award-winning shows, which far outpaced a slight rise in the box office overall, seemed to support the industry’s argument to Hollywood’s striking screenwriters that a Tony Awards telecast can play an important role in sustaining struggling shows. “Kimberly Akimbo,” in particular, needed the boost; despite strong reviews, it had been soft at the box office.“Leopoldstadt,” a heart-wrenching drama by Tom Stoppard about the effect of the Holocaust on a Jewish family in Vienna, had the biggest assist: The show won the Tony Award for best new play on June 11, and its grosses for the week that ended June 18 were up 42 percent over the prior week. The grosses were most likely boosted by the fast-approaching end of the show’s run on July 2.“Kimberly Akimbo,” a quirky show about a high school student with a life-threatening genetic condition and a comically dysfunctional home life, got a 32 percent boost at the box office after winning the prize for best new musical. The show, written by David Lindsay-Abaire and Jeanine Tesori, played to full houses through the week, which had not been the case previously.“After this won, I’m like, ‘I want to see this before I leave, just because it won a Tony,’” said Brad Steinmeyer, 30, who was visiting from Colorado and bought tickets to see the Tony Award winning-actors in “Kimberly Akimbo” on Saturday.Rhys Williams, 27, a theater actor from New York City, also said that watching the Tony Awards cemented his decision to buy a ticket for the show.“It made it something I didn’t want to miss,” he said.Overall, Broadway grosses were up 6 percent last week, reflecting some combination of recovery from the effects of the previous week’s wildfire smoke, the slow build of the summer tourism season, and heightened awareness of Broadway shows because of the awards ceremony and attendant media coverage.The other Tony-nominated musicals also saw improvement after their performances on the telecast, including “Shucked,” a corn-themed country-music show, which was up 23 percent; “& Juliet,” a revisionist take on “Romeo and Juliet” set to pop hits, which was up 18 percent; “New York, New York,” about two musicians making their way in the post-World War II city, which was up 17 percent; and “Some Like It Hot,” which was up 10 percent.“Parade,” which won the Tony Award for best musical revival, was also up 10 percent. The show is about the lynching of a Jewish businessman in Georgia in the early 20th century.Among plays, “Prima Facie” was up 17 percent after its lead actress, Jodie Comer, won a Tony; on Tuesday, the producers announced that the play had achieved the rare feat of recouping its capitalization cost, which was $4.1 million and means it will now begin generating profits in the days before it closes on July 2. But “Peter Pan Goes Wrong,” a madcap comedy that had no presence on the Tony Awards, was up even more — 22 percent — serving as a reminder of the capriciousness of grosses.Simply performing on the Tony Awards did not pay off for “A Beautiful Noise,” the Neil Diamond musical, which was not nominated for any prizes, and suffered an 11 percent box office drop after its cast performed a singalong version of “Sweet Caroline” on the telecast.Meanwhile, “Life of Pi,” adapted from the best-selling novel that had also been developed into a film, announced Tuesday that it would end its run on July 23. The play arrived from London after winning the Olivier Award there for best new play, and it received generally positive reviews upon opening on March 30 in New York, but never caught on with audiences. It picked up three Tony Awards for design, but was not nominated in the best play category; a North American tour is planned. More

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    L.A.’s Center Theater Group Lays Off Staff and Halts Work on One Stage

    With box office revenues, subscriptions and donations all down since the pandemic, the theater said it would pause production on one of its three stages, the Mark Taper Forum.In the face of what is described as a “crisis unlike any other in our 56-year history,” the Center Theater Group, a flagship of the Los Angeles theater world, announced a series of sharp cutbacks Thursday to deal with drops in revenue and attendance and said that it would suspend productions at one of its three stages, the Mark Taper Forum.The theater said it would lay off 10 percent of its 200-person work force.In a note to patrons, the theater said it “continues to feel the aftereffects of the pandemic and has been struggling to balance ever-increasing production costs with significantly reduced ticket revenue and donations that remain behind 2019 levels.” Theater officials said the organization posted an $8 million shortfall for the 2022-23 fiscal year and a $7 million shortfall the year before, much of which had been covered by federal pandemic assistance that is now ending.The 736-seat Taper, a semicircular amphitheater that has been a showpiece for innovative productions — “Slave Play” recently enjoyed a mostly sold-out run here — will suspend productions beginning this July and at least through the 2023-2024 season.And the theater is postponing a world premiere that had been set to open there this August, “Fake It Until You Make It” by Larissa FastHorse. As a result, the final production at the Taper for this season will be “A Transparent Musical,” a world premiere based on the television show “Transparent,” about the patriarch of a Los Angeles family coming out as transgender.The Los Angeles organization becomes the latest arts organization in the country — from regional theaters to symphony orchestras to opera houses — to grapple with a drop-off in attendance in the wake of the coronavirus pandemic.The center, which has a long record of championing new and innovative work, has been struggling to redefine its mission and regain its financial footing since reopening after the pandemic. The group is made up of three theaters: the Taper, the Ahmanson, and the Kirk Douglas Theater. The Ahmanson and the Taper are part of the Music Center complex in downtown Los Angeles; the Kirk Douglas is in Culver City.Season subscriptions at the Taper are 35 percent below what they were before the pandemic shutdown began; subscriptions at the group’s main theater, the Ahmanson, are down 42 percent. Its longtime artistic director, Michael Ritchie, stepped down in December 2021, six months before the expiration of his contract. He was replaced by Snehal Desai, the producing artistic director of East West Players, who will step into his new role this summer. He will take the helm at a reduced institution.“We didn’t think that it would happen this fast or this dramatically — before he got in the door,” said Brett Webster, a spokesman for the center. “He did go in knowing this was a possibility.”The Taper is particularly admired here because of its relatively intimate feel and its willingness to take on new productions, sometimes to acclaim, and sometimes not.“Pausing season programming at the Taper is a difficult but necessary decision that will impact artists and audiences; and is particularly painful for the talented and committed CTG staff who have dedicated so much to bringing great theater to L.A.,” the theater said.The Center Theater Group has a long and distinguished history here, the site of such pathbreaking productions as “Angels in America” and “Twilight: Los Angeles, 1992,” the Anna Deavere Smith play. More

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    Live Nation and Other Ticket Giants Promise Transparency on Fees

    Live Nation and SeatGeek said they would show customers the full cost of concerts, after the White House’s complaints that “junk fees” for tickets and hotel stays can mislead consumers.Under pressure from the Biden administration, some of the biggest companies that handle ticketing for concerts and other live events announced on Thursday that they will make it easier for consumers to see the full price of tickets they want to buy, including the fees that can often add more than 30 percent to the total cost of an order.Live Nation, the world’s largest concert company, said it would begin introducing “all-in pricing” — showing consumers the full price up front — at the venues it controls, which include more than 200 amphitheaters, clubs and other spaces in the United States. Ticketmaster, which is owned by Live Nation, said it would make this tool available to other venues and promoters as well. Those changes are expected beginning in September.SeatGeek, a major vendor for reselling tickets that also works for major venues and sports teams like the Dallas Cowboys, said it too would begin introducing a feature that would reveal to consumers the full price of a ticket.Those changes come as the Biden administration has stepped up its pressure on the entertainment and travel industries to rein in what it calls “junk fees.” Before beginning a round table at the White House with executives from Live Nation, SeatGeek, Airbnb and other companies on Thursday, President Biden framed the crackdown on surcharges as a way to appeal to the working class — a major theme of his re-election campaign.“These hidden charges that companies sneak into your bill make you pay more without you really knowing it initially,” Mr. Biden said. “Junk fees are not a matter for the wealthy very much but they’re a matter for working folks like the homes I grew up in.”As Mr. Biden spoke, a screen showed an example of a “service charge” of $12.99. But for the most in-demand concerts, those fees can be many times higher. For one Drake concert, for example, a screenshot ricocheted around social media in March showing that for two tickets costing $544, three surcharges — service fee, facility charge and order fee — added another $541, nearly doubling the total cost.Ticketing, and questions of competition and consumer fairness in the entertainment industry, became hot-button issues in Washington after a botched presale in November for Taylor Swift’s Eras Tour. Ticketmaster’s system was overrun with bots, and many fans reported that tickets they had selected disappeared from their online shopping charts.At a Senate Judiciary hearing in January, Live Nation came under harsh, bipartisan attack, with senators openly calling the company a monopoly. The Justice Department has separately been investigating Live Nation for potential violations of the consent decree that was a condition of the company’s merger with Ticketmaster in 2010; among the terms in that agreement were that Live Nation cannot threaten venues with retaliation for not using Ticketmaster as their official ticket vendor.But the extent to which the most recent promises by Live Nation and SeatGeek would substantially change the ticket market are unclear. The concert industry is complex, with pricing and fees controlled by various parties that have little incentive to reduce their take — especially with live music rebounding after its near-disappearance during the Covid-19 pandemic, and ticket sales now reaching record highs.The changes by Live Nation and SeatGeek do not lower prices or include any commitment to reduce surcharges, which are often set by venues; those companies are simply promising to disclose fees as part of a ticket’s total cost.After Mr. Biden’s State of the Union address in February — at which he said, “We can stop service fees on tickets to concerts and sporting events and make companies disclose all the fees upfront” — Live Nation proposed federal legislation that, among other things, would mandate all-in pricing.Without all competitors held to the same standard, many executives in the ticketing world say, those that comply voluntarily would be put at a competitive disadvantage, since other venues and ticketing services could lure customers by advertising lower prices, only to reveal surcharges once a customer completes a transaction.Senator Richard Blumenthal, a Democrat of Connecticut who is a sponsor of a bill called the Junk Fee Prevention Act, offered a mixed review of Live Nation’s pledge of transparency.“Live Nation-Ticketmaster’s announcement is a step in the right direction,” Mr. Blumenthal said in a statement, “but no substitute for legislation to provide consumers with transparency and prevent companies from imposing ridiculous junk fees.”Still, Mr. Biden said that all the companies he had gathered for the round table were “voluntarily committed to ‘all-in’ upfront pricing,” and he called it a victory.“This is a win for consumers in my view,” Mr. Biden said, “and proof that our crackdown on junk fees has real momentum.” More

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    Universal Says On-Demand Film Strategy Has Increased Audience

    The studio let viewers rent or buy movies earlier for a higher price. This made more than $1 billion in less than three years, with nearly no decrease in box-office sales.In 2020, at the height of the pandemic, Universal Pictures and its art-house sibling, Focus Features, set off alarm bells in Hollywood by ending the long-held practice of giving theaters an exclusive window of about 90 days to play new movies. Instead, their movies, which have since included “Jurassic World: Dominion,” “Belfast,” “Cocaine Bear” and “M3gan,” would become available for digital rental or purchase — at a higher price — after as little as 17 days.For a change-phobic industry that still views the 1981 arrival of armrest cup holders as a major innovation, the introduction of the service, known as premium video on demand, prompted extensive hand-wringing. Filmmakers and theater owners worried that ticket buyers would be more reluctant to leave their sofas if they could see the same films on their TV sets or iPads just a couple of weeks later.Universal’s competitors mostly stuck with the status quo.But the willingness by Universal to experiment — to challenge the “this is how we’ve always done it” thinking — seems to have paid off. Universal has generated more than $1 billion in premium V.O.D. revenue in less than three years, while showing little-to-no decrease in ticket sales. In some cases, box-office sales even increased when films became available in homes, which Universal has decided is a side effect of premium V.O.D. advertising and word of mouth.Universal, for instance, made “Minions: The Rise of Gru” available for premium V.O.D. after 33 days in theaters in 2022. The movie stayed in theaters after that, selling more tickets than “Minions,” released in 2015, did after 33 days, according to data from Comscore, an analytics company. Data for Universal’s “Jurassic World” and “Fast and Furious” franchises show a similar effect.An interesting wrinkle: Donna Langley, the chairwoman of the Universal Filmed Entertainment Group, which includes Focus Features, said the company had seen only a small decrease in revenue from traditional V.O.D. That service lets viewers rent or purchase movies at a lower price after 90 days in theaters. She said the premium offering was “an additive, important new revenue source that didn’t exist three years ago.”In other words, Universal thinks that, to some degree, it has found an entirely new customer.“It has had a hugely positive impact on our business,” Ms. Langley said, adding that without it, Universal would have likely had to make fewer movies. Universal and Focus will release 26 movies in theaters this year, more than any other Hollywood studio.Donna Langley, the chairwoman of the Universal Filmed Entertainment Group, calls premium on-demand “an additive, important new revenue source.”Valerie Macon/Agence France-Presse — Getty ImagesUniversal charges as much as $25 to rent a film for 48 hours and $30 to buy it during its premium V.O.D. sales period. Those prices can drop to $6 and $20 in the later, traditional sales window.About 80 percent of premium V.O.D. revenue goes to Universal, with sales platforms like iTunes and Google Play keeping most of the rest. (A small cut goes to theater chains like AMC Entertainment — grease to get them to agree to reduced exclusivity.) Ticket sales are typically split 50-50 with theaters.Premium V.O.D. revenue is small compared with box-office sales. But it’s certainly not nothing.“The Super Mario Bros. Movie” has generated more than $75 million in premium V.O.D. revenue since May 16, Universal said. “Jurassic World: Dominion,” “The Croods: A New Age” and “Sing 2” each collected more than $50 million. Universal said 14 films, including “News of the World,” a period drama starring Tom Hanks, and “M3gan,” each had more than $25 million.Films from Focus, including “Belfast” and “Mrs. Harris Goes to Paris,” have generated roughly $5 million each. For some art films, a theatrical release has become valuable mostly as “a marketing tool” for premium V.O.D. rentals and purchases, according to Julia Alexander, the director of strategy at Parrot Analytics, a research firm.Much like DVD sales in the 1990s and 2000s, premium V.O.D. has started to provide a type of financial safety net on box-office misses. “The Focus titles, in particular,” said Peter Levinsohn, the Universal Filmed Entertainment Group’s chief distribution officer. “Those smaller films aimed at older moviegoers have become, I wouldn’t say reliant on it, but they have benefited hugely.”It’s also about flexibility, Mr. Levinsohn said. The studio often decides that 17 days (three weekends) of theatrical exclusivity is enough. Sometimes, based on ticket sales, it allows for longer. “The Super Mario Bros. Movie” played exclusively in theaters for 41 days.“We have also taken back control of the decision of when to make our content available in the home, based on the most optimal timing for an individual film,” Mr. Levinsohn said. NBCUniversal said in January that revenue from its studios (both film and TV) increased 23 percent in 2022 from a year earlier, to $11.6 billion.Every studio has been trying to find creative ways to maximize movie profits in a fast-changing business. Part of Universal’s challenge is guessing what kind of impact premium V.O.D. might have on streaming: If movies are sold or rented more widely before they arrive on a streaming service (in Universal’s case, on Peacock and Netflix), does that make the movies less valuable tools for encouraging people to sign up for streaming services?“The impact on streaming is not quite as big as people might have expected, but it’s still notable,” Ms. Alexander said. More