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    Studios Are Loosening Their Reluctance to Send Old Shows Back to Netflix

    When building their own streaming companies, many entertainment studios ended lucrative licensing deals with Netflix. But they missed the money too much.For years, entertainment company executives happily licensed classic movies and television shows to Netflix. Both sides enjoyed the spoils: Netflix received popular content like “Friends” and Disney’s “Moana,” which satisfied its ever-growing subscriber base, and it sent bags of cash back to the companies.But around five years ago, executives realized they were “selling nuclear weapons technology” to a powerful rival, as Disney’s chief executive, Robert A. Iger, put it. Studios needed those same beloved movies and shows for the streaming services they were building from scratch, and fueling Netflix’s rise was only hurting them. The content spigots were, in large part, turned off.Then the harsh realities of streaming began to emerge.Confronting sizable debt burdens and the fact that most streaming services still don’t make money, studios like Disney and Warner Bros. Discovery have begun to soften their do-not-sell-to-Netflix stances. The companies are still holding back their most popular content — movies from the Disney-owned Star Wars and Marvel universes and blockbuster original series like HBO’s “Game of Thrones” aren’t going anywhere — but dozens of other films like “Dune” and “Prometheus” and series like “Young Sheldon” are being sent to the streaming behemoth in return for much-needed cash. And Netflix is once again benefiting.Ted Sarandos, one of Netflix’s co-chief executives, said at an investor conference last week that the “availability to license has opened up a lot more than it was in the past,” arguing that the studios’ earlier decision to hold back content was “unnatural.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    To Keep TV Shows Afloat, Some Networks Are Cutting Actors’ Pay

    In a shrinking business, actors on some shows are being guaranteed less money, an issue that’s helping to fuel the Hollywood strike.Starring on the CBS sitcom “Bob Hearts Abishola” has been good for Bayo Akinfemi. Being a regular cast member for four years has given him financial security and made him a star in his native Nigeria, where the show is wildly popular. It even helped him branch out from acting, when producers gave him the opportunity to direct an episode.But Mr. Akinfemi and 10 of his castmates were told this year that the only way the half-hour show was going to get a fifth season was if budgets were cut. How the actors were paid was going to change.No longer would they be guaranteed pay for all 22 episodes of a season. Instead, Mr. Akinfemi and his castmates would be reclassified as recurring cast members. They would be paid the same amount per episode, but unlike regular cast members, they would be paid only for the episodes in which they appeared and would be guaranteed only five of those in a truncated 13-episode season, once the actors’ strike was over and performers returned to work. (Only Billy Gardell, who plays the white middle-aged businessman Bob, and Folake Olowofoyeku, who plays Abishola, the Nigerian nurse he loves, will remain series regulars.)“It was a bit surprising, for all of 10 seconds,” Mr. Akinfemi said in an interview before SAG-AFTRA, the actors’ union, went on strike. “We are disappointed, but we also understand at the end of the day it’s a business.”For decades, actors playing supporting characters on successful network television shows have been able to renegotiate their contracts in later seasons and reap financial windfalls. But this is a new era for network TV.It’s a business that has been struggling with depressed ratings, decreased advertising revenue and fierce competition from streaming services, resulting in millions of viewers cutting their cable subscriptions. And one way networks and production companies are trying to deal with the changing economics is to ask the casts of some long-running shows to take pay cuts.“Bob Hearts Abishola” was not the only show facing budget cuts, Channing Dungey, the chairwoman and chief executive of Warner Bros. Television Studios, said. David Livingston/Getty Images“The glory days of linear television are sadly behind us,” said Channing Dungey, the chairwoman and chief executive of Warner Bros. Television Studios, the studio behind “Bob Hearts Abishola.”This new reality in network television is one of the reasons behind the Hollywood writers’ and actors’ strikes. Those on strike say the economics of the streaming era have effectively reduced their pay and cut into money they get from residuals, a type of royalty. The studios say they aren’t making the kind of money they used to, meaning that they’re having to shave costs wherever they can.The sides are at a standstill. The writers haven’t spoken to the studios since going out on strike on May 2, and the actors haven’t since walking out on July 14. No negotiations are scheduled.“Blue Bloods,” a CBS drama starring Tom Selleck, is returning for its 14th season only because the entire cast agreed to a 25 percent pay cut when the strike is over. On the CW network, “Superman & Lois,” which is entering its fourth season, and “All American: Homecoming,” which is hanging on for a third season, saw their budgets cut and cast members reduced to day players or eliminated.Not even the juggernaut represented by Dick Wolf’s lineup of shows on NBC is immune. A number of the actors on shows like “Chicago P.D.” and “Chicago Fire” are being guaranteed appearances in fewer episodes for the coming season, according to two people familiar with the productions, who spoke on the condition of anonymity to discuss personnel matters.“This is something that’s happening across the board,” Ms. Dungey said, adding that CBS wanted to renew “Bob Hearts Abishola” only if Warner Bros. was able to produce it for the network at a reduced cost. “There are a number of different shows, both on CBS and elsewhere, where the same kinds of considerations are coming into play.”CBS and NBC declined to comment.Word of the salary adjustments for “Bob Hearts Abishola” came out in late April, just days before SAG-AFTRA authorized its strike with a 97.9 percent vote in favor.“This is the beginning of the end for working-class actors,” the actress Ever Carradine, who has been in shows like “Commander in Chief” on ABC and Hulu’s “The Handmaid’s Tale,” wrote on Twitter at the time. “I have never worked harder in my career to make less money, and I am not alone.”Today, first-time series regulars often earn anywhere from $20,000 to $50,000 an episode, depending on the budget of the show, the size of the role, and the studio or network that’s footing the bill. Commissions for agents and management are subtracted from those sums.To some, the recent reductions are an inevitable correction from the era of peak television, when studios were eager to lure talent with lucrative contracts. Some executives argue that paring back salaries will ultimately allow more shows to be made, at a more reasonable price.Network shows do not draw anywhere close to the viewer numbers they did when 20 million people were watching “Seinfeld” and “Friends” every week in the 1990s.At the end of its fourth season, “Bob Hearts Abishola” was averaging 6.9 million viewers per episode, according to Nielsen’s Live +35 metric, which measures the first 35 days of viewing on both linear and digital platforms. Hits had bigger audiences, like CBS’s “Ghosts,” which averaged 11 million viewers over 35 days, and ABC’s “Abbott Elementary,” which averaged 9.1 million.But the rise of streaming has cannibalized network television on a scale the networks weren’t prepared for, and not even scaling back on scripted offerings has been enough to stem the bleeding. “Bob Hearts Abishola” is one of four prime-time scripted comedies left on CBS.“It is hard now to get shows to Seasons 5 and beyond, but it doesn’t mean that it can’t happen,” Ms. Dungey said. “It just is less likely to happen as often as it did in the past.”Yet the new reality means actors must decide whether to remain on a show at a reduced rate but with some job security or leave to see if they can find other jobs.The management team for Kelly Jenrette, an actress on the CW’s “All American: Homecoming,” told the trade publication Deadline that she had chosen to become a recurring character rather than “opt for a return as a series regular on reduced episodic guarantees.”Ms. Jenrette declined to be interviewed because, she said, she was told that doing so would violate the actors’ union’s ban on promoting projects associated with struck companies. The CW declined to comment.For some, the pride they take in their shows is also an enticement to stay. On “Bob Hearts Abishola,” Mr. Akinfemi plays Goodwin, an employee of Bob’s compression sock company who was on his way to becoming an economics professor in Nigeria before he left the country.Fans have stopped him in the Nigerian airport, in the streets of Toronto, even at the CVS near his home in Los Angeles to marvel that whole scenes of the show are spoken in Mr. Akinfemi’s native Yoruba tongue. (He also serves as the language consultant for the sitcom.)“The idea that there could be a show like this that really showcases Nigerian culture, it’s just unfathomable,” Mr. Akinfemi said. “That we are really representing Nigerian culture as accurately as possible and in a positive light, on American television, is mind-blowing to a lot of Nigerians and Africans.”He and the 10 other cast members affected by the pay changes on “Bob Hearts Abishola” all chose to stay.“These actors are attached to good, important, groundbreaking work,” said Tash Moseley, Mr. Akinfemi’s manager. “I think they knew that the actors would come back and do it no matter what.” More

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    Plot Twist at Turner Classic Movies Upsets Film Fans

    The network’s owner, Warner Bros. Discovery, promised there would be little to no change for viewers despite budget cuts behind the scenes.For many people in Hollywood, including lions like Steven Spielberg, Turner Classic Movies is not a cable channel. It is an extension of their identity.And it took a beating this week.On Tuesday, the network, known as TCM, jettisoned its five most senior executives through a mix of buyouts and pink slips. The departed were Pola Chagnon, the general manager; Charlie Tabesh, the channel’s lead programmer; Genevieve McGillicuddy, who ran the annual TCM film festival; Anne Wilson, a production executive; and Dexter Fedor, a marketer.Warner Bros. Discovery, the network’s owner, promised that viewers would see little to no change on TCM. The channel will remain free of ads. “We remain fully committed to this business, the TCM brand and its purpose to protect and celebrate culture-defining movies,” Kathleen Finch, chairman and chief content officer for the company’s domestic networks group, wrote in a memo that was shared with news outlets.But the channel’s loyalists responded to the cuts with hellfire, interpreting them as a further marginalization of an art form and a personal attack.Our cinemas have been overrun by superheroes. Our film studios have fallen victim to corporate consolidation. FilmStruck, our streaming service for silent-era gems and noir classics, was shut down. And now you are gutting TCM, our last happy place, where Orson Welles is mercifully alive and well and “Key Largo” (1948) still counts as a summer blockbuster?Using an expletive, Ryan Reynolds sounded an alarm on Twitter, telling his 21 million followers that TCM was a fixture in his life and calling the channel “a holy corner of film history — and a living, breathing library for an entire art form.” Mark Harris, a journalist and film historian, called the cuts “a catastrophic talent purge.” Patton Oswalt, an actor and writer, took direct aim at David Zaslav, the chief executive of Warner Bros. Discovery, cursing him on Twitter and saying, “You couldn’t just leave this one alone?”Mr. Zaslav routinely describes himself as a colossal fan of classic cinema. He keeps TCM playing in his office, where he proudly works from the same desk used by Jack Warner, one of the studio’s founders. In recent months, Mr. Zaslav, who took over Warner Bros. last year, has been celebrating the studio’s 100th anniversary.Is it just an act?By late Wednesday, three Hollywood titans — Mr. Spielberg, Martin Scorsese and Paul Thomas Anderson — had issued an unusual joint statement saying they had spoken to Mr. Zaslav and were “heartened and encouraged.”“We are committed to working together to ensure the continuation of this cultural touchstone that we all treasure,” the statement said. “Turner Classic Movies has always been more than just a channel. It is truly a precious resource of cinema, open 24 hours a day, seven days a week. And while it has never been a financial juggernaut, it has always been a profitable endeavor since its inception.”The directors added, “We have each spent time talking to David, separately and together, and it’s clear that TCM and classic cinema are very important to him.”The filmmakers said Mr. Zaslav, in fact, had privately reached out to them earlier in the week to discuss the restructuring of TCM. “We understand the pressures and realities of a corporation as large as WBD, of which TCM is one moving part,” the directors said. “Our primary aim is to ensure that TCM’s programming is untouched and protected.”Michael Ouweleen, the president of Cartoon Network and Discovery Family, will now oversee TCM.Bryan Bedder/Getty ImagesIn a business sense, TCM is a financial footnote for Warner Bros. Discovery, an entertainment conglomerate with roughly 37,000 employees worldwide and $34 billion in annual revenue. But like every other media mogul, Mr. Zaslav is wrestling with a no-win situation: Cable television, which has long powered media conglomerates, is in terminal decline, meaning that operational costs must also go down. Budget cuts have affected all of the company’s many divisions.Fewer than 50 million homes will pay for cable or satellite service by 2027, down from 64 million today and 100 million seven years ago, according to a recent PwC report.So the belt tightening at TCM was more about preservation than annihilation, at least in Warner Bros. Discovery’s view. Ben Mankiewicz, Jacqueline Stewart and the other TCM hosts will continue in their roles, according to a spokeswoman. TCM will continue to pay for access to classic films from all studios; there is no plan to restrict the channel to Warner Bros. movies. TCM will also continue to be featured as a “brand hub” on Max, the company’s streaming service.Michael Ouweleen, the president of Cartoon Network, among other channels, will oversee TCM going forward. He is based in Atlanta. TCM was previously part of his portfolio on an interim basis.“Michael shares our passion for classic films and believes strongly in TCM’s essential role in preserving and spotlighting iconic movies for the next generation of cinephiles,” Ms. Finch said in her memo.Mr. Ouweleen might be smart to remember that, for TCM’s devotees, the network’s programming is less entertainment and more “the stuff that dreams are made of.” More

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    ‘Harry Potter’ to Become a TV Series

    The author J.K. Rowling is expected to executive produce the show, which will appear on Max, the streaming service from Warner Bros. Discovery.Harry Potter fans, some of whom have been casting spells for years in hopes of a television series about the boy wizard, can finally put their wands down and rejoice.Max, the new streaming service from Warner Bros. Discovery announced on Wednesday that it had ordered a “Harry Potter” television series based on the novels by the British author J.K. Rowling.“We are delighted to give audiences the opportunity to discover Hogwarts in a whole new way,” Casey Bloys, the chairman and chief executive of HBO and Max content, said in a statement.“Harry Potter is a cultural phenomenon and it is clear there is such an enduring love and thirst for the Wizarding World,” he said. A news release announcing the series said it would be a “faithful adaptation” of the best-selling book series, which spans seven books published between 1997 and 2007. Eight hit films based on the books were released between 2001 and 2011.The upcoming show, which is described as a decade-long series, “will feature a new cast to lead a new generation of fandom, full of the fantastic detail, much-loved characters and dramatic locations that Harry Potter fans have loved for over 25 years,” according to the release. It will be available on Max in the United States and around the world. No time frame for the show’s release was given.Ms. Rowling, who has drawn waves of criticism in recent years over her remarks on gender identity issues, will be an executive producer for the series.“Max’s commitment to preserving the integrity of my books is important to me, and I’m looking forward to being part of this new adaptation which will allow for a degree of depth and detail only afforded by a long form television series,” she said in a statement.Ms. Rowling, who has drawn criticism in recent years over her remarks on gender identity issues, will executive produce the series.Krista Schlueter for The New York TimesPotterheads, a term used to describe super fans of “Harry Potter,” have been grappling with the author’s comments on transgender issues for years. In 2020, she published an essay in which she said a movement of transgender activists was “seeking to erode ‘woman’ as a political and biological class and offering cover to predators.”While Ms. Rowling has denied being anti-transgender, her remarks have pitted fans against each other, with some vowing to stop supporting the Potter franchise.Despite the continued debate over Ms. Rowling, products related to Harry Potter continue to sell. Earlier this year, The Hogwarts Legacy video game sold more than 12 million copies in two weeks.The television show is the latest moneymaking arm of the Potter universe, which also include feature films, a stage play, live entertainment at theme parks, studio tours and retail stores.Max, the latest entry into the crowded streaming market, will debut next month, and will cost roughly $16 a month for a commercial-free version and less for an advertising-supported tier.Last April, WarnerMedia and Discovery Inc. merged, adding a new media giant to the entertainment industry. David Zaslav, the president and chief executive of Warner Bros. Discovery, sold shareholders on the deal in part by arguing that the combined company could have a successful app.But over the last year, the company has seen some obstacles, including shelving at least two projects and laying off part of its work force. More

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    ‘Succession’ Wins Best Drama at Emmys as HBO Triumphs Again

    “Succession,” HBO’s portrait of a dysfunctional media dynasty, won best drama at the 74th Emmy Awards on Monday night, the second time the series has taken the prize.Jesse Armstrong, the show’s creator, also took home the Emmy for best writing, the third time he’s won in that category. And Matthew Macfadyen won best supporting actor in a drama for the first time for his performance on the show.It was the sixth time in eight years that HBO has taken the television industry’s biggest prize for a recurring series, making it yet another triumphant night for the cable network. HBO, as well as its streaming service, HBO Max, won more Emmys (38) than any other outlet, besting its chief rival, Netflix (26).“The White Lotus,” the cable network’s beloved upstairs-downstairs dramedy that took place at a Hawaiian resort, won best limited series, and tore through several other categories. The show won 10 Emmys altogether, more than any other series. Mike White, the show’s creator and director, won a pair of Emmys for best directing and writing. And performers from the show, Murray Bartlett and Jennifer Coolidge, both received acting Emmys.“Mike White, my God, thank you for giving me one of the best experiences of my life,” Bartlett, who played an off-the-wagon hotel manager, said from the Emmys stage.But HBO’s chronicles of the rich were not the only winners on Monday night.“Ted Lasso,” the Apple TV+ sports series, won best comedy for a second consecutive year, as the tech giant continues on an awards show tear. Apple TV+, which had its debut in November 2019, won best picture at the Oscars (“CODA”) earlier this year. And Jason Sudeikis repeated as best actor in a comedy as the fish-out-of-water soccer coach in “Ted Lasso.”There were other big moments in the comedy awards. Quinta Brunson, the creator of the good-natured ABC workplace sitcom, “Abbott Elementary,” about a group of elementary schoolteachers at an underfunded Philadelphia public school, won for best writing in a comedy. It was only the second time a Black woman won the award (Lena Waithe was the first, in 2017, for “Master of None”).In one of the night’s most electric moments, Sheryl Lee Ralph won best supporting actress in a comedy for her role on “Abbott Elementary” as a veteran teacher at the school. Ralph began her Emmys speech by singing “Endangered Species” by Dianne Reeves, and received a standing ovation from the room full of nominees. Her victory was also historic: It was only the second time a Black woman won the award. The last time was in 1987, when Jackée Harry won for her role in the NBC sitcom “227.”This has been the most competitive Emmys season ever: Submissions for all the categories surged, and 2022 is very likely to set yet another record for the highest number of scripted television series.But there was also a sense of concern among the executives, producers and agents in attendance at Monday night’s Emmy Awards, that 2022 represents the pinnacle of the so-called Peak TV era, which has produced the highest number of scripted television series, nearly every year, for more than a decade.Netflix, which lost subscribers this year for the first time in a decade, has laid off hundreds of staffers and is reining in its spending. HBO’s parent company, Warner Bros. Discovery, has shelved projects and is about to lay off a significant number of employees. NBC executives are considering ending its prime-time lineup at 10 p.m., and handing the hour over to local stations.Business challenges aside, the night was mostly a feel-good celebration. Zendaya won her second Emmy by taking best actress in a drama for her role as a troubled teen in HBO’s “Euphoria.” Jean Smart repeated as the best actress in a comedy for her role as a Joan Rivers-like comedian in HBO Max’s “Hacks.”“Squid Game,” the blood-splattered, South Korean Netflix series, won a pair of awards: Lee Jung-jae for best actor in a drama, and Hwang Dong-hyuk for directing. Those wins represented a major breakthrough for a foreign language show as television becomes more global, and as American audiences are increasingly receptive to series with subtitles.Michael Keaton, who played a small town doctor in “Dopesick,” took the best actor award in a limited series. And Amanda Seyfried won best actress in a limited series for her well-received performance as Elizabeth Holmes in “The Dropout.”Emmy voters often have a habit of finding a winner, and sticking with it, and this year was no different. John Oliver’s “Last Week Tonight” won the best talk show category for a seventh consecutive year, and “Saturday Night Live” took the best variety sketch series for a sixth straight year.This year’s ceremony was the first return to the Microsoft Theater since the pandemic. Producers for the Emmys incorporated an element that it experimented with at last year’s ceremony, which took place inside a tent: Instead of theater-style seating, nominees were gathered around tables with bottles of champagne and wine around them.This year’s host, Kenan Thompson, the “Saturday Night Live” veteran, opened the ceremony in a top hat and led a group of dancers in a bizarre interpretive dance to theme songs of famous TV series like “Law & Order,” “The Brady Bunch” and “Game of Thrones.”During his monologue, Thompson took a dig at Netflix’s recent woes.“If you don’t know what ‘Squid Game’ is, it is the contest you enter when you’re in massive debt and desperate for money,” the host said. “Joining the cast next season? Netflix.” More

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    HBO Max Pulls Nearly 200 ‘Sesame Street’ Episodes

    HBO Max took down classic episodes of “Sesame Street” as it prepares to combine with Discovery+. The move came as a surprise to fans, who worried about what it signals.Nearly 200 episodes of “Sesame Street” have been pulled from HBO Max, the streaming platform that has been purging films and television shows in recent weeks as it prepares to combine with another streaming service, Discovery+.Fans of “Sesame Street” were surprised on Friday to see that hundreds of episodes, most from the first 40 years of the show, had been removed from HBO Max.It is the latest shift at HBO Max following the merger of its former parent company, WarnerMedia, with Discovery Inc. in April. Together, the companies formed Warner Bros. Discovery, which is aiming to find $3 billion in savings in an effort to reduce its $55 billion in debt.This week, about 70 HBO Max staff members were laid off as a part of the reorganization, and HBO Max announced that 36 titles were being pulled from the platform. The pulled programming included the animated series “Infinity Train” and “The Not-Too-Late Show With Elmo,” a “Sesame Street” spinoff.David Zaslav, the company’s chief executive, also told investors this month that the company plans to offer a single paid subscription streaming service, bringing together content from HBO Max and Discovery+.It was not clear what that means for the future of “Sesame Street” on HBO Max.As of Friday, HBO Max had cut the number of “Sesame Street” episodes it provides to 456 from 650, Variety reported. Some spinoff series survived the cull, including seven seasons of “My Sesame Street Friends,” and “The Magical Wand Chase” special, featuring Elmo and Abby Cadabby, a pink fairy-in-training who joined “Sesame Street” in 2006.Every episode of “Sesame Street” from Seasons 39, which aired in 2008, through 52, the latest season, is still available on HBO Max. The newest season, 53, will air on HBO Max in the fall.The only episodes available from before season 39 are from seasons one, five and seven, including a fan favorite in which all of the characters gather for a singalong in Bert and Ernie’s bathroom.Some of the most notable episodes HBO Max once streamed are no longer available, including an episode that aired in 1983 and featured Big Bird confronting death, following the death of the actor who played Mr. Hooper, Will Lee.HBO said in a statement that the streaming platform was “committed to continuing to bring ‘Sesame Street’ into families’ homes.”“‘Sesame Street’ is and has always been an important part of television culture and a crown jewel of our preschool offering,” the statement said.Sesame Workshop, the nonprofit group behind “Sesame Street,” struck a five-year deal with HBO in April 2015 to give the premium cable network the first run of new episodes. The episodes would then air free nine months later on PBS, where the show had aired for 45 years.In 2019, Sesame Workshop made a similar deal with HBO Max, which started in May 2020. Both deals also gave HBO Max access to the enormous back library of “Sesame Street,” though it has never made all of the episodes available at the same time.Some episodes of the show are available on PBS and the Sesame Street YouTube account.Sesame Workshop did not immediately respond to a request for comment on Saturday.Joe Hennes, editor in chief of ToughPigs, a website for fans of “Sesame Street,” the Muppets and other Jim Henson creations, said the “Sesame Street” episodes still available on HBO Max were a “random assortment.”“The culturally important episodes, or the episodes that maybe a more casual fan would say, ‘I’d like to see that again,’ that stuff is what’s missing,” Mr. Hennes said.Mr. Hennes, who worked in the creative department of Sesame Workshop from 2012 to 2021, said that he was concerned that the episode removal could signal a fading relationship between HBO Max and Sesame Workshop.Sesame Workshop expanded its offerings and increased its production values with the influx of funding from the premium cable network. If HBO Max reduced its financial support or ended the relationship, Mr. Hennes said it could limit the nonprofit’s production and outreach work.“In a perfect world, HBO Max would want to invest more in ‘Sesame Street’ and really make it the flagship that it could be for the streaming network,” Mr. Hennes said. “So it’s a little baffling that they would decide to go backward on that and say we’re going to do less of this and not really capitalize on their own investment in the franchise.”After HBO Max’s decision to remove episodes became public, the official Twitter account for “Sesame Street” seemed to address the change.“Your friends on Sesame Street will always be here when you need them,” it said. “Visit the neighborhood any day of the week with full episodes on our YouTube channel.” More

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    Madison Avenue’s Biggest Event Returns, to a Whole New World

    In the three years since the television industry’s biggest companies pitched their shows to advertisers in person at the so-called upfronts, the entertainment industry has been flipped on its head.For the first time in three years, the circus is coming back to town.The television industry’s biggest showcase for advertisers, the so-called upfronts, will return to Manhattan landmarks like Radio City Music Hall and Carnegie Hall after the pandemic put the glitzy, in-person galas on hold. Just like in the old days, media executives will make their best pitch to persuade marketers to buy tens of billions of dollars of commercial time in the coming months.But thanks to the vastly changed media industry, many aspects will be radically different. The companies themselves have changed: CBS merged with Viacom and then renamed itself Paramount Global, and WarnerMedia and Discovery completed a megamerger, forming Warner Bros. Discovery. The tech giant YouTube is making its debut on the presentation lineup this week, and there is already intrigue that Netflix could join the fray next year.And instead of unveiling prime-time lineups that will roll out in the fall, media companies are expected to spend a large portion of their time talking up advertising opportunities on streaming services like HBO Max, Peacock, Tubi and Disney+. There’s good reason for that: Advertisers are now allocating closer to 50 percent of their video budgets to streaming, up from around 10 percent before the pandemic, several ad buyers said in interviews. The free ad-supported streaming platforms Tubi and Pluto were highlights for their owners, Fox and Paramount, in the most recent quarter.“The upfronts used to be ‘Here’s 8, 9, 10 p.m. on Monday night’ — I don’t think anybody cares about that anymore,” said Jon Steinlauf, the chief U.S. advertising sales officer for Warner Bros. Discovery. “You’re going to hear more about sports and things like Pluto and less about the new Tuesday night procedural drama.”Stephen Colbert during the 2019 CBS upfront. CBS merged with Viacom and then renamed itself Paramount Global since the last time it was featured on an upfront stage.John P. Filo/CBSThe courtship is no longer one-sided, when reluctant streaming platforms once put a stiff arm to commercials. As subscriber growth starts to slow for many streaming services, advertising — a mainstay of traditional media — is gaining appeal as an alternative source of revenue.Netflix, which resisted ads for years but is aiming to debut an ad-supported tier later this year after a subscriber slump, is expected to play a larger role in future upfronts. Disney+, which has so far continued to increase its subscriber count, said this year that it would also offer a cheaper option buttressed by ads.“Streaming is part of every single conversation that we have — there isn’t an exception based on who your target it is, because whether you’re targeting 18-year-olds or 80-year-olds, they’re all accessing connected TV at this point,” said Dave Sederbaum, the head of video investment at the ad agency Dentsu. Last year, ad buyers spent $5.8 billion on national streaming platforms, an amount dwarfed by the $40 billion allocated to national television, according to the media intelligence firm Magna. But television sales peaked in 2016 and are expected to decline 5 percent this year, compared with a 34 percent surge projected for streaming ad revenue as services offer more preproduced and live content.The rapid changes in viewing habits have caused many marketing executives to shift toward ads placed through automated auctions and “away from legacy models like upfronts” where “advertiser choice is limited,” said Jeff Green, the chief executive of the ad-tech company The Trade Desk.“As advertisers are seeing reach and impact erode from traditional cable television, they are focused on moving to premium streaming content,” he said during his company’s earnings call last week. “Increasingly, this is the most important buy on the media plan.”But streaming will not be the only topic at the upfronts — the events themselves will also be center stage.After two years of upfront pitches recorded from executives’ living rooms, buyers will fly into New York from around the country. They will shuttle among grand venues to watch presentations while seated alongside their competitors. Some venues are asking for proof of vaccination, while masks are a must at some; Disney is requiring a same-day negative Covid test.To many networks, hosting an in-person upfront was nonnegotiable this year.“This show cannot be too big,” Linda Yaccarino, the chairwoman of global advertising and partnerships at NBCUniversal, said she told producers of the company’s presentation at Radio City Music Hall on Monday. “Having everyone in the room together, there is no surrogate for that.”“Every single brand and marketer and advertiser comes in for the upfront week,” said Rita Ferro, the president of Disney advertising sales and partnerships. “It’s going to look and feel very different because it is very different — there’s so much more that we’re bringing to the stage.”Many of the week’s showcases will eschew a detailed rundown of nightly prime-time schedules and instead offer a more holistic view of available content platforms.Mr. Steinlauf, the Warner Bros. Discovery advertising chief, who is a veteran of several decades of upfronts, described changes that represent “the biggest shift of my career.” He said streaming was “the future, the new frontier,” and heavily watched athletic events were “the new prime time.” Warner Bros. Discovery will make its upfronts debut on Wednesday in front of 3,500 people at Madison Square Garden.Jo Ann Ross, Paramount’s chief advertising revenue officer, said that its event on Wednesday would “show a broader look.” She described it as a “coming-out party as Paramount” for the company formerly known as ViacomCBS.“It will feel different than what it was in the past,” she said.On Tuesday, Disney will abandon its usual upfront home at Lincoln Center and move to a space in the Lower East Side at Pier 36. The presentation will feature its three streaming platforms — Hulu, ESPN+ and Disney+ — sharing a stage for the first time. NBC Universal will highlight its technological capabilities, such as data collection, while also drumming up its Peacock streaming platform, even though the service already made a pitch earlier this month during NewFronts, an event for digital companies courting Madison Avenue.Linda Yaccarino of NBCUniversal said that “having everyone in the room together” this year for the company’s upfront was the only way to go.Tawni Bannister for The New York TimesThe competition could mean more demands from advertisers, like the ability to back out of commitments and lower thresholds for how much buyers must spend.“It’s basic economics — there are now more options available to media buyers and so you’re going to see a lot more willingness to be flexible,” said David Marine, the chief marketing officer of the real estate company Coldwell Banker.Potential headaches for advertisers this year could include Russia’s war in Ukraine, global supply issues and steep inflation, according to Magna. But low unemployment and other signs of strength from the U.S. economy, along with the coming midterm elections, are expected to feed a surge in ad spending.How the upfronts address those concerns, along with deeper movements in the industry, “will be telling,” said Katie Klein, the chief investment officer at the agency PHD.“There’s always going to be room for the upfront, there’s always going to be a need for it,” she said. “But it’s going to evolve as our industry is evolving.” More

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    New Era Begins at Warner Bros., Back Toward Its Entertainment Roots

    With a new owner, the 99-year-old movie studio appears headed back to its traditional sweet spot as an entertainment company. But the business of Hollywood is no longer the same.LOS ANGELES — By 2018, almost every golden-age Hollywood studio had been conquered by outside forces.Metro-Goldwyn-Mayer had been tossed between disruptive owners for decades, never to fully recover. Columbia Pictures was sold to Coca-Cola in 1982 and then offloaded to Sony in 1989. Universal had weathered five outside takeovers in the span of 21 years. Paramount Pictures had been strip mined for cash by an ailing Sumner Redstone.Warner Bros. alone stood as Hollywood’s citadel, a beige-walled protectorate of filmmakers run by executives with institutional Hollywood knowledge.Then AT&T drove into town.The Texas phone giant took over Warner Bros. in June 2018 as part of a bid to “bring a fresh approach to how the media and entertainment company works,” as Randall L. Stephenson, then AT&T’s chief executive, put it at the time. As it set about building a Netflix-style streaming service, AT&T slashed and burned through the Warner Bros. ranks and installed leaders with little Hollywood experience. They cut costs, surprised stars with abrupt distribution decisions and pushed Warner to start behaving as more of a technology company and less of an entertainment one: It’s the future!“The telephone people had no understanding of Hollywood — and no passion for movies,” Robert A. Daly, who ran Warner Bros. in the 1980s and ’90s, said on Friday. “It’s the same mistake outsiders always make. It’s show business, show business, show business. They always forget that.”On Friday, AT&T handed off Warner Bros. to Discovery Inc. as part of a $43 billion merger.The 99-year-old movie studio, home to Harry Potter, Batman and Bugs Bunny, will now head in a different direction — back toward its traditional sweet spot as an entertainment company, or at least Hollywood’s newest mogul has vowed. David Zaslav, Discovery’s chief executive, will run the new corporation, which is called, with no small amount of symbolism, Warner Bros. Discovery.Already, Mr. Zaslav has vanquished tech leaders brought in by AT&T, including Jason Kilar, who made his name at Hulu and Amazon, and Andy Forssell, who came up through Oracle and Hulu. Also departing is Ann Sarnoff, who AT&T hired to run Warner Bros. in 2019 despite limited Hollywood experience. During her tenure, Ms. Sarnoff reworked the Warner Bros. shield logo, dropping the gold trim in favor of AT&T blue. On Friday, Mr. Zaslav restored the gold.Some Hollywood players never changed their acid position on Ms. Sarnoff — she’s not one of us — with film folk sniping about her delay in relocating to Los Angeles from New York. (With the pandemic ebbing, she bought Matt Damon’s old house in November, spending roughly $18 million.)Ann Sarnoff was hired to run Warner Bros. in 2019 despite limited Hollywood experience. She is leaving the post.JC Olivera/Getty Images for National Hispanic Media CoalitionIn contrast, Mr. Zaslav is already deep into a lavish restoration of Woodland, an estate in Beverly Hills where Robert Evans, the show business legend, lived for decades. Mr. Evans was known for orchestrating a creative rebirth at Paramount in the 1960s and ’70s, delivering era-defining triumphs like “The Godfather” and “Chinatown.”“Success is about creative talent, in front of the screen, and behind the screen, and fighting and fighting to create a culture that supports that creative vision,” Mr. Zaslav said when announcing the takeover. For much of the past year, he has rhapsodized about the studio’s rich legacy, repeatedly paying tribute to Jack, Harry, Sam and Albert Warner, “the brothers who started it all.”On Friday, Mr. Zaslav talked about his aspirations to “dream big and dream bold” in an email sent to his new employees. “Hallelujah,” one Warner Bros. manager said in a text message afterward. Another executive at the studio, speaking by phone, said she was going on a “wild” shopping spree to celebrate, adding, “Hollywood is back, baby.”Others were not so sure. Mr. Zaslav qualifies as an entertainment insider, having run Discovery, a cable television behemoth, for 15 years and working at NBCUniversal before that. But he has little film experience. The merger also comes with breathtaking debt — some $55 billion — that will have to be paid down, even as content costs rise. Mr. Zaslav will need to make difficult decisions about how to allocate resources. How much money should be spent on movie production and marketing? To what degree should the studio make movies for exclusive release in theaters? Should the focus shift even further toward supplying films to HBO Max, the company’s streaming service?Under Ms. Sarnoff, Warner Bros. slashed its annual theatrical output by nearly half and built a direct-to-streaming assembly line. “The good old days are gone forever,” one Warner-affiliated film producer said on Friday.Hollywood as a whole finds itself in a similar state of mind: optimistic about the future of movies one minute, pessimistic the next. There is evidence that theaters are finally bouncing back from the pandemic. Over the weekend, the PG-rated “Sonic the Hedgehog 2” took in a huge $71 million in North America, the biggest opening total for a Paramount movie since 2014, while “The Batman” (Warner Bros.) added $6.5 million in ticket sales, for a blockbuster domestic total of $359 million since arriving on March 4.At the same time, one of Hollywood’s most bankable directors, Michael Bay, sputtered over the weekend. His crime thriller “Ambulance” (Universal) arrived to just $8.7 million in ticket sales. In another bummer, “Morbius” (Sony) collapsed in its second weekend, collecting $10.2 million in the United States and Canada, a 74 percent decline.Some analysts liken the future of big screens to Broadway — still alive, but relegated to a corner of the culture. “The pandemic caused a phase shift in movie consumption patterns with audiences having moved decisively to preferring streaming services over the theatrical experience for all but the biggest, loudest, PG-13est films,” Doug Creutz, a Cowen analyst, wrote in a March 25 report.The result is a disoriented movie business. Run toward streaming. No, wait — we’ve got to keep theaters alive. Run the other way.Now, run both ways at the same time.The discombobulation at Warner Bros. started in 2016. That is when AT&T announced that it was buying the studio’s parent company, Time Warner, for more than $85 billion. The deal sat in regulatory limbo for 20 excruciating months, limiting the ability of Warner executives to make bold strategic moves. Moreover, Netflix was spending billions during that period to become the preferred home for film directors and marquee television producers. Amazon Prime Video was also making inroads.Mr. Zaslav’s catch-up strategy will soon emerge. To formulate it, he has spent months reaching out to people like Mr. Daly; Sherry Lansing, the retired Paramount superpower; Robert A. Iger, who retired as Disney’s executive chairman in December; and Alan F. Horn, who ran the Warner Bros. Pictures Group from 1999 to 2011 and then led Walt Disney Studios for nearly a decade.Their brain power was undoubtedly invaluable. But meeting with them also sent a clear message to Hollywood: I respect your culture.“The telephone people had no understanding of Hollywood — and no passion for movies,” said Robert A. Daly, who ran Warner Bros. in the 1980s and ’90s.Valerie Macon/WireImage, via Getty Images“For an industry of its substantial size, Hollywood is surprising insular,” Mr. Horn said on Saturday. “The creative community, in particular, needs to feel your respect. Artists need to know that you understand them and will do your absolute best to protect them.”Mr. Horn continued: “David’s willingness to go around town and seek the advice of dozens of people has spoken volumes. It’s how you build trust.”Mr. Zaslav will “work with a passion to rebuild the studio’s relationship with the creative community,” Mr. Daly said. “You’ve got to support the talent,” he added. “It’s a bit like children: Don’t spoil them too much, but make them feel loved.”Mr. Daly then waxed nostalgic about talent relations at Warner Bros. in the past. The studio used to send turkeys to stars at Thanksgiving. “It cost nothing, and it meant the world to them,” he said. There was also the time, in 1992, when Mr. Daly gave free Land Rovers to seven members of the “Lethal Weapon 3” cast and crew. “It cost us $320,000 to buy those Land Rovers, and we were criticized left and right for the expense,” Mr. Daly said. “Do you know what it got us? ‘Lethal Weapon 4,’ which made $285 million.”Mr. Zaslav seems to have taken notes. In February, when Los Angeles hosted the Super Bowl, stars like Charlize Theron and Jamie Foxx and prolific Warner Bros. producers like Greg Berlanti (“Riverdale,” “The Flight Attendant,” “You”) were invited to party in his suite at the new SoFi Stadium. Mr. Zaslav and his key lieutenants bought the suite with the intention of routinely wining and dining talent at football games, concerts and other major events.The stately Warner Bros. complex in Burbank, Calif., is the ancestral home of Humphrey Bogart (“Casablanca”) and Bette Davis (“Now, Voyager”). Mr. Zaslav intends to move into Jack Warner’s old office, a decision based on his stated desire to be near where “the magic happens.” The Warner Bros. administration building is near Soundstage 6, where one of Mr. Zaslav’s favorite movies, “The Maltese Falcon,” was partly filmed.Just one word to the wise, Mr. Zaslav: Don’t park in Clint Eastwood’s spot. He’s had it for more than 50 years and once used a baseball bat to knock out the windows of an interloping car.John Koblin More