- Founded By = Frank Giustra (1997)
- Mark Rachesky = Chairman
- Michael Burns = Vice Chairman
- Jon Feltheimer = CEO
- Headquartered = Santa Monica, California
- 6 subsidiaries & 8 joint ventures
- Services offered = VoD, Film Production, Entertainment, Broadcast Programming, Digital Distribution
- YouTube content creator & comedian Mamrie Hart has signed a first-look deal with Lionsgate
- This expands Hart's relationship with the studio from her 2016 film venture 'Dirty 30' which she co-wrote, co-produced and co-starred in.
- This work with the studio will broaden Hart's digital and creative career
https://www.theguardian.com/film/2015/jun/18/netflix-vod-streaming-future-of-cinema
- For the time being people are still visiting movie theaters but producers and directors are increasingly tailoring their content to fit the online age of streaming. However, some directors such as Spike Lee believe that if you haven't seen their content in the cinema you haven't really seen them at all. Netflix's chief content officer is open to acknowledging that VoD can't completely match cinematic experiences. He said, Watching a movie online is like seeing a sports game broadcast on TV rather than in the stadium". This view that the Chief Content Officer at Netflix carries is reflected in Netflix's production of films which are informative rather than cinematic.
- Every year statistics are ever increasing to show that young people are ditching the movie theater for the likes of Netflix and LoveFilm as streaming both illegal and legal continue to grow.
- The TV & Film industries have increasingly overlapped in recent years.
- For the time being, films are still distributed in cinemas as well as on demand/VoD but personally, I do not think this will continue for much longer.
- Movie theaters are essentially as old as the film industry itself first built in their masses in 1910
- Cinemas cater to groups of people rather than individuals like VoD aims to do i.e) films at the cinema are suitable for that plus one {Rom Coms = Targeted at men too}
- Reed Hastings CEO of Netflix said to the New York Times "In eyes of the conservative family the company should stand for wholesome entertainment but to a 20-year-old college graduate content should be a bit more edgy". It is highly unlikely that these two demographics would go to the cinema together which is where Netflix's pride in providing content which is individual comes in.
- With films being on multiple platforms messages between them is likely to vary.
- A distinctive form of films is also developing with Google creating 360-degree movies and headsets made for virtual reality but, at the moment, Google’s Spotlight Stories only work on Android phones.This 360-degree film idea allows viewers to click on the screen and take a look around as the action takes place aiming to create a fully immersive experience that gives audiences the thrill of having stepped into the story. For example, 'Help!' directed by F&F Justin Lin.
- This distinctive form of film is even more interesting when it comes to documentaries. Director Chris Milk has used virtual reality to place his audiences in the midst of the issues in Jordan and a New York protest allowing the viewer to tell their own story rather than a correspondent painting the story for them.
- While virtual reality can transport audiences to the place of the event it only allows for the lightest of storytelling.
- 360-degree films are similar to what IMAX cinemas are offering but IMAX requires a large interactive screen to feel the full experience.
- Online streaming providers draw consumers in with their affordability, convenience and sheer number of options. Is this therefore, threatening the remaining existence of movie theaters altogether.
- "Not just yet" say analysts and chief executives in the industry.
- "Our competition is not Netflix. It's not the internet. It is sporting events, it is bowling, it is nightclubs. Tim Richards CEO of leading UK movie theater chain Vue Cinemas told CNBC, last week.
- "We're having a record-breaking year this year. 2014 was a disappointing year globally, and the studios just didn't get it right and that happens. It happens typically every five or six years." Tim said.
- "And everybody predicted the ultimate demise of the industry, the Netflix approach, and everything else. (But) it was bad movies, and 2015 came back, rebounded, record-breaking year in almost every market in the world," said Richards, citing "Star Wars Episode VII" as an example". Tim continued.
- IMAX theaters "play into the Netflix issue", as consumers can either "chain themselves to the couch" or go out and see a blockbuster that's delivered with up-to-date technology, great picture quality and surround-sound. said Richard Gelfond CEO of IMAX.
- Movie theater executives seem unruffled by Netflix at the moment but it is not to say that Netflix isn't gaining a heavy recognition among consumers. As of July 2016, Netflix had 83m members and operates in more than 190 countries worldwide.
- End of third quarter Netflix predict to have 85.5m subscribers.
- "Netflix is certainly a key issue in terms of overall consumer media consumption and how this effects leisure time and spending". Richard Broughton research director at Ampere Analysis told CNBC.
- He (Richard) continued "This doesn't necessarily mean that Netflix *isn't* having an impact – but that the effects on cinema-going are at the very least relatively subtle."
- Boxoffice Media's Editorial Director, Daniel Loria echoed similar comments, telling CNBC that while the home entertainment scene has "always been seen as a threat to exhibition", it appears the theater industry has always been able to coexist with home entertainment.
- "People still need an affordable and entertaining option on a Friday night regardless of where they live," said Loria, adding that home entertainment is "certainly not as big of a disrupting force (to cinema attendance) as it's made out to be."
- Cinemas are trying to adapt to the technological advances that are helping VoD and similar to thrive offering better movie experiences, with chains investing in areas like bigger screens, luxury, bars, reserved seating and new technology to ensure consumers come back for more.
http://variety.com/2016/film/features/box-office-decline-summer-blockbusters-the-bfg-1201822322/
- Steven Spielberg is a very well known director when it comes to the blockbuster arena but even his magic skills couldn't save "The BFG" at the box office. The film a $140 million adaptation of a beloved children's book collapsed at the multiplexes eking out less than $20 million in its opening weekend. It is a stunning fall for one of cinema's greats.
- Takings for other directors recent creations such as 'Alice Through the Looking Glass' directed by James Bobin hadn't done too greatly either at the box office despite having budgets north of $130 million along with steep global marketing costs and distribution costs.
- Such failures could cost their studios tens of millions of dollars: Which questions whether they could survive in this tough market as VoD and similar gains its comeuppance.
- “The theater business has weaker prospects going forward than at any time in the last 30 years,” says media analyst Hal Vogel. “It’s encountering visible strain this summer. It’s a superhero, mega-blockbuster, tentpole strategy run amuck. There’s too much of it, and it’s not working.”
- However, it's not all doom and gloom for the industry there have been hits particularly for Disney with Pixar's "Finding Dory" and Marvel's "Captian America: Civil War" together racking up '$1.8 billion worldwide".
- Year to date, receipts are up 2% , thanks to the likes of winter hits like "Deadpool" and "Zootopia".
- Blockbuster season is different... Ticket sales are down roughly 10% this summer (2016).
- Audience of 18 - to - 39 year olds has declined over the past 5 years according to the Motion Picture Association of America.
-- Article indicates general growth in the streaming industry: From Weekly News Stories
- Streaming service 'Spotify' revenues sky rocket to almost £190m with mobile subscriptions taking off with an 18% rise from £159m to £187.2m last year.
- Spotify is the 'world's biggest music streaming service' with a valuation of £6.9bn ($8.5bn).
- “This increase can be attributed to the transition from desktop to mobile as today the majority of new users signing up for Spotify are mobile,” the company said.
- Subscription income accounts for over 90% of Spotify's UK total revenues and the remainder comes from advertising. However, ad revenue fell slightly from £11m to £10.8m last year (2015).
- Lionsgate formed a partnership with Kevin Hart and his Hartbeat Digital to launch the "Laugh out Loud" VoD service in the fall.
- The service will operate 24/7 and serve as the exclusive home for all content created by Hart outside his theatrical and live touring activities.
- The service will also include original series starring Hart - e.g. Hidden camera premium original series starring Hart as an undercover Lyft Driver.
- “Lionsgate has always been a great partner of mine, and I’m more than excited to take our business and creative relationship to new levels,” said Hart.
- Hart's service will also showcase content featuring social media stars and up and coming comedians.
- Traditional distributors would like us to believe differently but VoD has been democratized.
- While possible that a director's film will be the next breakout hit, it isn't guaranteed that the success will come from the cinema screen, it could quite likely come from platforms such as Amazon Prime.
- Given this, filmmakers need to know/understand that when it comes to VoD distribution there are two ways to go about it:
- Traditional Model: Give up a proportion of movie ownership to traditional distributors (e.g. Lionsgate) and allow them to control distribution on all platforms including VoD.
- Modern Model: Pay for VoD distribution as a service; cutting out the costs of paying the traditional middle man (film distributors) and retain full ownership of your creation.
- Lionsgate Vice Chairman Michael Burns doesn't expect day and date cable VoD releases of new DVD product to see a breakthrough any time soon.
- The Chairman also promised that his studio's flopped release 'Punisher: War Zone - won't lose the studio more than a few million dollars'.
- " 'Punisher' cost the studio $22 million to release and it made about $4 million so far"
- Overall, the Chairman said " we expect to lose $4 million - $5 million at the most on the film" he said the flop that was 'Punisher' is an example of Lionsgate's solid risk mitigation strategy.
- Burns also said "I'm confident that the studio will overcome recent box office disappointment to end the year up".
- Asked about day-and-date cable VOD, Burns told the UBS crowd retail relationships are still too important for studios. "We're not really in a position to ... (we don't) want to piss off retailers," he said, adding he has concerns that day-and-date could cannibalize DVD sales.
- A list movie star Adam Sandler who took the 90's box office by storm with comedic hits like 'Big Daddy', has signed with Netflix to produce another four feature films.
- Netflix has 93 million subscribers worldwide.
- Sandler will become the first movie star to bypass theater releases and instead premiere his films straight into people's living rooms.
- Sandler's films have grossed $3 billion.
- Netflix is making an aggressive play to expand its original slate of movies.
- UK = Some of the highest cinema ticket prices
- Are these prices sustainable? When consumers have alternative cheaper forms of entertainment such as VoD services like Netflix charging less than £10.00 a month for subscription.
- Research reveals that large multitudes of the UK population are having to pay a far higher price than the national average ticket price to go the cinema of approximately £6.50.
- Cinema is no longer regarded as a cheap evening out.
- The average price for a UK cinema ticket (VUE) for an adult is £9.00 - £10.00.
- For an average family (2 adults, 2 kids) tickets would cost £33.56 in total which equates to 4 months worth of a Netflix subscription.
- Box office grosses are increasing more quickly than admissions.
- There is a belief among some that film going is becoming an increasingly expensive & rarefied pastime in the age where we have IMAX, virtual reality and luxury seating.
- Tim Richards, CEO of VUE = "We aim to cater for all our customers even those who may be a bit more price sensitive", "We try to offer different seats and options, whether it be 2D, 3D or big screen or IMAX".
- Movie attendence dropped by a surprisingly sharp 5.1% in 2014, this is unlikely to be a industry ebb as admittances plunged to lowest level since 1995.
- Streaming services mainly Netflix, have been undermining broadcast TV and cable channels for years but now signs seem to show that movie theatres at next in line at the other end of the gun that streaming services just keep on firing.
- The most worrisome data nugget concerns Americans aged 14-24 — people in this age bracket delivered a stunning 15% decline in movie-going. This comes right after a reported 17% decline in the previous year.
- Back-to-back double-digit attendance declines among young consumers seem to point to something deeper than which selection of superheroes hit the theaters in 2014.
- The time that adult American smartphone users spend on their devices has mushroomed in recent years, hitting 2 hours or even more on a daily basis, depending on research sources. That 120 or 150 minutes a day clearly must be hurting a variety of other entertainment options.
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