Hollywood
Emerging technologies create problems for release of new films
NEW DELHI: Over 350 different versions of Captain America: The Winter Soldier was created in just 17 days, in order to play in all its formats in theatres across the United States and internationally.
Those formats include: 2D, 3D, film and digital. Other variants might include 4D, IMAX, and high frame rate. In the near future, laser light projectors, Dolby Atmos, and Barco Auro will require even further versions of feature films. These can include any combination of 2D, 3D (typically at least two versions at different light levels), possibly Imax and in the case of The Hobbit, a high-frame-rate option. If one has a “4D” release, each of the three 4D companies — CJ 4DPlex, MediaMation and D-Box — require their own proprietary version.
With tight turnaround times, and an ever-increasing number of variables to consider, executives are not seeing an end to this problem, though they are hoping that standards will help alleviate at least some of the workflow.
“Standards will help with some of the chaos,” says an executive. “But we can’t afford to stay static. This is the new normal. We get it done, but it’s not easy. We learn, we get more efficient, and then something new comes along. It’s a cycle.”
With more than 95 per cent of the cinema screens in North America now converted to digital, executives find the situation is getting chaotic.
“Controlled chaos” is how one studio exec (who was not involved with The Winter Soldier) describes the situation as. The reason is that the various options afforded by digital technologies means that multiple versions of a movie are needed. “The number has skyrocketed.”
Several sources confirmed that it is not uncommon for a studio to create roughly 15 different versions of a movie for a domestic release — and some recent tentpoles have exceeded 30 different versions just for North America.
Meanwhile, laser light projectors with the promise of offering brighter images will be made available this year — and that may require another version. Barco’s recently unveiled Escape system (which creates a sort of Cinerama experience) would require another.
Film prints are still needed for the remaining theatres, though domestic distribution of a typical tentpole title to 4,000 screens generally means fewer than 100 film prints are being created. “It’s getting harder because all of this takes time,” admitted one studio executive.
Hollywood
Warner Bros board reopens talks after Paramount raises bid to $31 a share
Netflix has four days to revise $27.75-a-share proposal
NEW YORK: The board of Warner Bros Discovery has reopened talks with Paramount Skydance after the rival bidder raised its cash offer to $31 a share, intensifying a takeover contest for one of Hollywood’s most prized studios, Reuters reported.
Paramount’s revised proposal has pulled Warner Bros’ directors back to the negotiating table, even as Netflix risks losing its status as the preferred suitor. The board said it had not yet concluded whether Paramount’s offer was superior to the Netflix deal, but confirmed it would engage further with both sides. Should a higher bid emerge, Netflix has four business days to respond.
In a bid to strengthen its hand, Paramount increased the termination fee payable if regulators block the deal to $7 billion, up from $5.8 billion. It also agreed to pay Warner shareholders 25 cents a share per quarter for every quarter beyond 30 September that the transaction fails to close. Paramount further offered to inject additional equity should lenders raise concerns about financing at completion.
Paramount’s $31-a-share bid is an all-cash offer for the entire company. Netflix, by contrast, has proposed $27.75 a share in cash, valuing the deal at $82.7 billion including net debt, for Warner’s film and television studios, content library and the HBO Max streaming platform.
The comparison is muddied by structure. Warner plans to spin off its television networks into a separately listed company, Discovery Global. The ultimate value of Netflix’s offer therefore depends on the spun-off unit’s debt load and market valuation. The board estimates Discovery Global could trade between $1.33 and $6.86 a share, potentially lifting overall shareholder returns above Paramount’s earlier $30-a-share proposal.
Either outcome would reshape Hollywood’s balance of power, handing the winner a deep content vault and enduring franchises including Game of Thrones and DC Comics. Netflix has ample cash to raise its offer, while Paramount argues it faces fewer regulatory hurdles in the United States. It has also signalled readiness to mount a board challenge at Warner’s annual meeting if its proposal is rejected.
That pressure is building. One potential director nominee floated by Paramount is Pentwater Capital Management chief executive Matthew Halbower, one of Warner’s largest shareholders. Separately, activist investor Ancora Holdingshas accused the board of insufficient engagement with Paramount.
Warner is due to report quarterly results this week, which may shed more light on the value of its cable television assets. Paramount reports earnings on Wednesday. A shareholder vote on the Netflix deal is scheduled for 20 March.
