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  • The global film industry is in turmoil, crippled by cinema closures and production restrictions.

  • Perhaps famed television producer Dick Wolf said it best.

  • It's show business.

  • No show, no business.

  • So, what will happen to your favorite shows?

  • Towards the end of 2020, a leaked recording of Tom Cruise berating his 'Mission Impossible 7' film crew

  • for breaking Covid safety protocols made headlines worldwide.

  • Cruise made clear the dire state of the motion picture industry in no uncertain terms.

  • I'm on the phone with every f------ studio at night!

  • Insurance companies!

  • Producers!

  • And they're looking at us and using us to make their movies.

  • We are creating thousands of jobs.

  • That's what I sleep with every night.

  • The future of this f------ industry!

  • In 2019, global box office revenues brought in $42.2 billion, of which $11.4 billion were from the U.S. and Canada.

  • With cinemas in the lucrative North American and European markets shuttered for most of 2020,

  • it would be hard to put a price tag on the losses.

  • Film and TV productions worldwide were abruptly halted in 2020, including Warner Bros' 'The Batman'.

  • When filming resumed after a 6-month delay, lead actor Robert Pattinson tested positive for Covid-19 in September.

  • Other highly anticipated blockbusters had their 2020 release dates delayed to 2021,

  • including the James Bond film 'No Time to Die', 'Black Widow' and 'Dune'.

  • After months of production delays, cameras are starting to roll again, with part of a movie's budget

  • dedicated to coronavirus-related costs, such as setting up routine swab tests, quarantines and filming bubbles.

  • Michael Moffett is the co-founder of a production network supporting shoots in 50 territories worldwide.

  • He said film crews are finding ways to jumpstart the industry.

  • Production is resuming in live action films, it's underway in most major film hubs around the world.

  • We, as an industry, have taken extreme measures, adopting health and safety precautions, protocols

  • to ensure that we can indeed return to work.

  • On set, what the bubble concept has achieved, is identifying a grouping really, people that

  • need certain protection and ensuring that there really is non-essential exposure.

  • The stakes are high, Singaporean filmmaker M. Raihan Halim said.

  • At the start, we always say that we do not want to be that group that actually had a case.

  • Because all it takes is literally that one chink in the armor right, that can actually make everything stumble.

  • Slowly, go.

  • Projects are definitely affected. I know companies that have projects that are meant to be done overseas

  • but they had to rejig the whole storyline to either fit into Singapore or mimic Singapore as another part of another country.

  • So we have contingencies, we have the Europe contingency, we have the Malaysia contingency.

  • So it's all about evolution.

  • And the evolution is so fast, we're literally taking things by the minute.

  • The rising cost of insurance is also proving to be challenging for the film industry.

  • According to insurance provider Allianz, premiums in the entertainment industry are typically

  • between 0.6% and 1% of a film's budget.

  • That means a movie with a $200 million budget would be spending as much as $2 million on insurance.

  • We now are in a situation where no insurance company is really offering insurance against

  • the pandemic, or if they are, it's at rates that are just off the charts.

  • It could be a 5-10% increase up to as much as 30%. It depends very much on the type of project.

  • This is an incredible burden to take on, and this is what's actually holding back a lot of productions from moving forward.

  • And it's not just the pandemic that's affecting box office sales.

  • The rise of streaming services such as Netflix, Hulu and Peacock are challenging the dominance

  • of films released in brick-and-mortar cinemas.

  • This trend has accelerated in 2020 as more people stay indoors and turn to streaming services to get their pop culture fix.

  • Other SVOD servicesor subscription video on demandinclude Amazon Prime Video,

  • Disney+, Apple TV+, CBS All Access and HBO Max.

  • Besides acquiring popular content, these platforms are creating original content to add new paying

  • subscribers and keep existing ones glued to their screens.

  • Since 2015, streaming giant Netflix has poured nearly $700 million into partnerships and

  • co-productions in South Korea.

  • Disney is also focusing all its firepower on its streaming platform through its franchises

  • such as Star Wars, Marvel, FX and National Geographic.

  • Covid accelerated the rate at which we made this transition, but this transition was going

  • to happen anyway because essentially, what we want to do is, separate out the folks who

  • make our wonderful content based on tremendous franchises, from the decision-making in terms

  • of where the prioritisation is, in terms of how it gets commercialised into the marketplace.

  • As dynamics change in the marketplace though, we want to make sure that we're giving consumers

  • who want to go to theaters, to experience everything that a theatrical release can give them.

  • But at the same time, there's a lot of consumers that want to experience the movie

  • in the safety, comfort and convenience of their own home.

  • In the traditional business model of moviemaking, films typically premiere in cinemas for 90 days

  • before being released directly to consumers through platforms such as on-demand channels and streaming services.

  • However, the widespread theater closures have accelerated film releases directly on home media,

  • leading to a rethink for studio giants like Warner Bros., Walt Disney, 20th Century Fox, Paramount and Universal.

  • In 2020, Universal released 'Trolls: World Tour' in theaters and streaming platforms simultaneously,

  • while Disney did the same for 'Mulan.'

  • However, nothing was as drastic as Warner Bros.'s decision to release its entire slate of

  • 17 films scheduled for 2021, and 'Wonder Woman 1984'

  • on HBO Max at the same time they're available in theaters.

  • Why does it make sense to release your next 18 films simultaneously on streaming and also in theaters?

  • Well, it really obviously stems from the pandemic.

  • We've been trying to figure out the best way forward, for the last 8 months.

  • We've recorded many movies which are ready to go, and they've been sitting on shelves,

  • so we thought this was the most creative and win-win situation to bring them out not only

  • in theaters, but simultaneously for 31 days on HBO Max.

  • We're working through this system with our talent, with their agents.

  • Anything new is always a little bit difficult to work through for the first time,

  • but this new hybrid model has not been tried before.

  • The way we consume content is changing, and so too is the art of storytelling.

  • But even with all the changesbe it technological advances or restrictions imposed by the pandemic

  • the show business continues to be a source of escape for many.

  • Even as streaming platforms surge, there are signs that business is slowly picking up again in cinemas,

  • and along with it, a familiar business model for the industry.

  • The biggest blockbuster in 2020 is not from Hollywood, but China.

  • The war epic, 'The Eight Hundred', earned $468 million at the box office.

  • In Japan, a record for the best opening weekend was set with the manga movie,

  • 'Demon Slayer: Mugen Train,' grossing $44 million at the box office.

  • That has given a glimmer of hope for Hollywood executives.

  • Encouraged by the sight of busy cinemas, 'Wonder Woman 1984' was launched in China a week

  • before the U.S., which until now, was taboo in Hollywood due to piracy concerns.

  • This is a win-win for the motion picture industry and viewers.

  • Entertainment, we're not saving lives, right. But that's what is keeping people sane during quarantine.

  • So not saving lives, but nourishing them.

  • Yeah, we're nourishing the mind, nourishing the soul.

  • How many people turn to the Netflixes and all the online materials, because you can't go out?

  • It's good to know that people are watching stuff, hopefully appreciating more stuff.

  • Hey, guys. We want to know if and how your streaming habits have changed.

  • So drop your comments and do subscribe if you've enjoyed this video.

  • Thanks for watching, and stay safe.

The global film industry is in turmoil, crippled by cinema closures and production restrictions.

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What will happen to your favorite shows? | CNBC Reports

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    Summer posted on 2020/12/30
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