SEÑAL NEWS | RESEARCH #31 2021

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A NEW WINDOWING SYSTEM FOR HOLLYWOOD

WEEK #31 ∙ AUGUST 2021

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A NEW WINDOWING SYSTEM FOR HOLLYWOOD WEEK #31 ∙ AUGUST 2021

HOLLYWOOD STUDIOS ARE REVAMPING THEIR STREAMING OUTPUT DEALS

THE IMPACT OF COVID-19 ON MOVIE THEATERS HAS ACCELERATED TWO PREEXISTING TRENDS: MORE PEOPLE ARE STAYING HOME TO ENJOY MOVIES AND OTHER ENTERTAINMENT, AND MORE STUDIOS AND MEDIA DISTRIBUTORS ARE DEVELOPING THEIR OWN DIRECT-TO-CONSUMER STREAMING SERVICES.

Media Companies are moving Pay-One Output deals to their own burgeoning DTC services COMPANY

STUDIO

FORMER PAY-ONE OUTLET

NEW PAY-ONE OUTLET 2019 2023 2022 2023 2021 2021 2022 2022

THE BOX OFFICE WEIGHT FOR HOLLYWOOD STUDIOS Total global revenuefor studios, by theatrical window Box office

2022 2022

TV

Video / DVD

2000

26%

2022

28%

46%

2010

36% Source: EMC Analysis

23%

42%

2020

IN-HOUSE AND LICENSED MOVIES ON US PLATFORMS Additional MGM movies

0

2000

4000

THE SHIFTING LANDSCAPE PUTS STUDIOS IN A DIFFICULT POSITION. THEY MAY BE ABLE TO REACH MORE PEOPLE THROUGH STREAMING SERVICES BUT DOING SO COULD UNDERMINE THEATERS AND THE LARGE REVENUES THEY GENERATE. IT COULD ALSO AFFECT REVENUE FROM OTHER WINDOWS. SUCH CONSIDERATIONS IMPACT UPFRONT FINANCING OF PRODUCTIONS, EXISTING DISTRIBUTION AGREEMENTS, AND LICENSING TERMS.

Licensed movies

6000

8000

36%

Source: SNL Kagan

(If Amazon were to bring all MGM-distributed movies currently available on SVoD in US in-house) In-house movies

18%

46%

10000

12000

14000

Source: Ampere Analysis

SIGNIFICANT HOME OFFICE DROP FOR THE RECENT BLOCKBUSTERS (Millions)

Opening Weekend

HOLLYWOOD REDUCED THE NUMBER OF LAUNCHES The big six have reduced the number of movie releases

Second Weekend

WARNER BROS

$80.4 $70.0

DISNEY

109

$47.5

-68%

$31.6

$31.1

-69%

$23.3

$9.6

-56% -73% $6.2

Day/Date release on HBO Max

Source: EMC Analysis

$13.9

$25.8

-67% $21.5

-49% $11.0

$8.5

-33% $5.7

Day/Date release on Disney+ Premier Access Window

$16.0

-45%

$23.0

84

PARAMOUNT SONY

-59% $19.3

$8.9

Day/Date release Exclusive on Peacock Theatrical release

20TH CENTURY FOX

UNIVERSAL

27

Exclusive Theatrical release

1995 Source: The Numbers

OTHER

43

2020