English Entertainment
HBO, Star Movies start to feel blackout pinch
MUMBAI: It has been two weeks since English film channels HBO and Star Movies have been off air in Mumbai. While the Hindi film channels have returned with the undertaking not to air ‘A’ rated films, the problem with the above mentioned two channels is that they do not have enough films rated U and U/A to put on air for 24 hours.
In Mumbai, Hathway and InCable, which control 55 per cent of the cable homes in Mumbai, have not resumed telecast of these two channels. Even some other areas of Mumbai that have other service providers are not getting them. The first problem is that a significant percentage of the viewership for English movie channels (around 15 per cent) each week, comes from Mumbai.
The second difficulty is that the channels have to get their films cleared by the Censor Board. A Star official says that the channel is in the process of submitting the films. He was non committal when asked as to when the channel was expected to be back on air.
HBO too, has a significant backlog to be cleared. While attempts to contact HBO proved unsuccessful, a Zee Turner official says that it is looking to help HBO in the process. The repercussions of the blackout are already starting to show however.
On the ad revenue front, information available with Indiantelevision.com indicates that agencies will ask for some kind of compensation if the problem is not resolved soon. The amount of course will depend on the delay in getting the channels back on the air.
On the distribution front though, the Zee Turner official says that the cable fraternity has been cooperative and understanding of the situation. Of course subscribers in Mumbai will continue to pay for HBO. So there is no loss there in the absence of addressability.
The longer this drags on the better it is for the likes of Zee Studio and Pix. While the ratings are not yet out they would have benefitted to some extent as some viewers who would normally watch HBO and Star Movies tune in to them.
What is interesting though is that Zee spokesperson Ashish Kaul says that the blackout is too restrictive to be a reason for the channel to do anything drastic like push forward its planned marketing campaign. “Had it been a nationwide blackout, the situation would have been different. While more people in Mumbai will tune in to us we need to push ourselves more for them to stay with the channel once HBO and Star Movies come back on. We will be launching new properties and a campaign in around three weeks time. If the blackout is still on (which looks likely) then we will certainly see more visibility.
“However we recognise that the blackout is temporary and to get viewership in the long term we need to create better visibility for ourselves. It is important that our brand position of being a channel for the movie connoisseur be clear.”
Another beneficiary from the blackout would be DVD libraries. A spokesperson from a library says that more English movie DVDs are being rented on the weekends. The blackout does not affect rentals the weekdays as people in any case do not have the time, he says. On weekends though the number of English film DVDs being rented is up by around 15 per cent over the past couple of weeks.
English Entertainment
Warner Bros. Discovery shareholders approve Paramount deal
Investors wave through a $111 billion megamerger but deliver a stinging, if toothless, rebuke over half-a-billion-dollar goodbye packages
NEW YORK: The shareholders said yes to the deal. They said no to the cheque. At a virtual special meeting on Thursday that lasted barely ten minutes, Warner Bros. Discovery investors voted overwhelmingly to approve Paramount Skydance’s $111 billion acquisition of the company — and then turned around and voted against the lavish exit pay packages lined up for chief executive David Zaslav and his fellow outgoing executives.
Not that it will make much difference. The compensation vote is purely advisory and non-binding. The Warner Bros. Discovery board can, and almost certainly will, pay out as planned.
But the symbolism stings. It is the second consecutive year that WBD shareholders have voted against the executive compensation packages, and this time they had good reason. Zaslav’s exit deal is, by any measure, extraordinary. Under the terms filed with the Securities and Exchange Commission, he is set to receive $34.2 million in cash severance, $517.2 million in equity in the combined company, and $44,195 in continued health coverage — a total of at least $550 million. On top of that, Warner Bros. Discovery has agreed to reimburse Zaslav up to $335 million for taxes assessed by the Internal Revenue Service on his accelerated stock vesting, though the company says that figure will decline depending on when the deal closes. As of March 11, Zaslav also held $115.85 million in vested WBD stock awards — and last month sold a further $114 million worth of WBD shares.
Shareholder advisory firm ISS recommended voting against the compensation measure, citing “problematic” tax reimbursements to Zaslav and the full vesting of his stock awards.
Zaslav will be bound by a two-year non-competition covenant and a two-year non-solicitation of customers and employees after the deal closes.
His lieutenants are not walking away empty-handed either. J.B. Perrette, chief executive and president of global streaming and games, is in line for $142 million, comprising $18.2 million in cash severance and $123.9 million in equity. Bruce Campbell, chief revenue and strategy officer, will receive an estimated $121.5 million, including $18.8 million in severance and $102.7 million in equity. Chief financial officer Gunnar Wiedenfels is set for $120 million, made up of $6.6 million in cash severance and $113.1 million in equity. Gerhard Zeiler, president of international, will get $82.6 million, including $11.9 million in severance and $70.7 million in equity.
The deal itself, clinched in February after Netflix declined to raise its bid for Warner Bros., still needs regulatory clearance from the Justice Department and European authorities. Several state attorneys general are also weighing legal action to block it.
Senator Elizabeth Warren, Democrat of Massachusetts, was unsparing. “The Paramount-Warner Bros. merger isn’t a done deal,” she said after the shareholder vote. “State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
If it does go through, the combined entity would be a formidable beast, bringing together Paramount Skydance’s stable — CBS, CBS News, Paramount Pictures, Paramount+, BET, MTV and Nickelodeon — with WBD’s portfolio of HBO, Max, Warner Bros. film and TV studios, DC, CNN, TBS, TNT, HGTV and Discovery+. Paramount has said it expects $6 billion in cost savings from the merger, which is Wall Street shorthand for mass layoffs on a significant scale.
The ten-minute meeting was presided over by chairman Samuel Di Piazza Jr., with Zaslav, Campbell, Wiedenfels and chief communications officer Robert Gibbs in virtual attendance. Di Piazza was bullish. “We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” he said. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Zaslav echoed the sentiment. “Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” he said. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount Skydance struck a similar note. “Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery,” it said in a statement, adding that it looked forward to “closing the transaction in the coming months.”
The shareholders have spoken on the merger. On the pay, they were ignored before the vote was even counted.
