TELEVISION PARADIGM SHIFTS

NetFlix, , Hulu, HBO, CBS, Sling, and Beyond and the TELEVISION PARADIGM SHIFTS

•1997 Netflix is founded by Reed Hastings and Marc Randolph as a subscriber based nation- wide mail-order VHS/DVD company to compete with BLOCKBUSTER VIDEO’S MONOPOLY. –Silicon Valley (San Jose/Palo Alto California) –Reed Hastings says that he founds Netflix partly out of frustration after being fined $40 by Blockbuster for being late in returning “Apollo 13.” •2002 NETFLIX DVD 700,000 subscribers in the U.S.; •2005 RAPID GROWTH 3.6 million Netflix subscribers  DVD rental for $4 and an additional $2 for shipping  250,000 discs available for rent  4 DVD’s for one-time monthly fee of $15.95  revenues touched $150 million  2005 shipping nearly 1,000,000 DVD’s by mail every day! VIDEO STREAMING BEGINS! Major PARADIGM SHIFT for TV & Film

• 2007-2010 NETFLIX STARTS TV/VIDEO STREAMING

oMAJOR BARRIER #1: SLOW INTERNET SPEEDS (Bandwidth)

oBARRIER#2: Viewer Loyalties… to DVDs, CABLE, and BroadcastTV

oBARRIER#3: NETWORK CAPACITY—Too Small • 2010 NETFLIX starts streaming to Canada (1st International Market); • 2012—Streaming to UK/ENGLAND and to Mexico and Caribbean • 2012 AMAZON PRIME — Starts offering streaming video

– Fox starts Hulu (Advertising based) in ~2014 • 2013 NETFLIX Starts creating ORIGINAL SHOWS/CONTENT: • 2016/17 NETFLIX becomes “available” WORLDWIDE!  The FIRST LEGITIMATE GLOBAL TV PROVIDER  “Available” in 190 countries (not China)  Mostly Cities and wealthy urban areas  Tourist Centers and Hotel Districts • 2017/18 Netflix surpasses Cable subscribers NETFLIX “Original” SHOWSGlobal Audiences The Game Changing Programs 1. (2016) 17 Emmys 2. (2016) 3. 4. House of Cards 5. 6. 7. Global/INTERNATIONAL VIEWERS The HUNT for New International Viewers! MAJOR New GLOBAL Markets:

• 2010 NETFLIX starts streaming to Canada (1st International Market); • 2012—Streaming to UK/ENGLAND and to Mexico and Caribbean. • 2012 AMAZON PRIME — Starts offering streaming video

– Fox starts Hulu (Advertising based) in ~2014 •2013 The GLOBAL RACE FOR VIEWERS IS ON!

 2015 European Nations with wealth, tech bandwidth, AND established TV viewers! • Germany, France, Norway, Sweden, Finland, Switzerland, Austria  2015 Asian Nations: . Singapore, Japan, South Korea, Taiwan, Malaysia  2017/18: India (1.33 billion) + Brazil (200million)

 CHINA!??? (1.4 billion) Netflix Goes Global

• 2015/16/17 NETFLIX becomes “available” WORLDWIDE!  The FIRST LEGITIMATE GLOBAL TV PROVIDER  “Available” in 190 countries (not China, Syria)  Streaming BANDWIDTH  Mostly Cities and wealthy urban areas  Tourist Centers and Hotel Districts Most Popular Shows on Netflix Worldwide

Seven shows are the most popular in five countries or more. Netflix has a lot of global heavy hitters in its show lineup, with seven programs topping the list of favorites in at least five countries.

3%Most Popular in 8 Countries

My Love from the Star  Most Popular in 7 Countries

13 Reasons Why  Most Popular in 5 Countries

Bones  Most Popular in 5 Countries

Boys Over Flowers  Most Popular in 5 Countries

Breaking Bad  Most Popular in 5 Countries

Sense8  Most Popular in 5 Countries Global/INTERNATIONAL VIEWERS The HUNT for New International Viewers!

MAJOR New GLOBAL Markets:  New Audiences  New languages  Cultural Stories  Actors  Locations  TECH REQUIREMENTS  COSTS  COMPETING PROVIDERS?

Hollywood Dropouts! 1. Film/Hollywood Audience DROPs!! – People are NOT going OUT to the movies as much – In-home viewing or other “entertainment/leisure options” – 13-24 Age demographic Drop 2. CGI Action films are Dominating Hollywood 3. Engineered Squels, Prequels, etc. 4. Cost of Moviegoing Tickets…concessions… 5. Movies are one-shot hit-or-miss. Movie-going? Hollywood Dropouts—The Sequel Multi-National Productions 1. The Bodyguard – Genre  Drama/Political Thriller – Production Companies  World Productions, ITV, BBC Netflix. – Executive Producers  Simon Heath, Jed Mercurio, Elizabeth Kilgarriff – Production Locations  , England.

2. Narcos – Genre International Crime Drama – Production Company  Gaumont Television =US TV division of the French Gaumont. Independent studio based in , designed to produce television programming for the U.S. and international markets. – Executive Producers  Chris Brancato, Carlo Bernard, Doug Miro, Katie O'Connell, Eric Newman, José Padilha, Elisa Todd Ellis – Production Locations  Colombia and the U.S. – Companion Spin-off Series  Narcos: Mexico Premiered on Netflix on November 16, 2018. ultimately developed as a companion series focusing on the illegal drug trade in Mexico.

3. (—Matrix) – Genre: – 16 Cities in over 13 countries – (The Wachowskis—Matrix) – $108million/season$9million/episode – Cancelled A-List Hollywood FILM Actors & Directors Shifing to TELEVISION

1. Rise in Quality of TV Stories & Characters – Web playground for a “new creativity” in story – MORE Character and Plot Development in TV – Different and “edgy” stories Matthew McConaughey and Woody Harrelson, HBO 2. “Cinematic” Production Values of TV 3. Longer: TV Series 13-20+ Episodes/Season 4. Not Dependent upon a single Pilot Episode or Nightly ratings (Advertisers) Claire Danes, Showtime 5. Bigger budget TV Productions (Lord of 1. Homecoming: Julia Roberts 2. True Detective: Matthew McConaughey and Woody Harrelson, the Rings, The Crown, etc.) 3. Extant: Halle Berry 4. Grace & Frankie: Jane Fonda 5. Goliath: Billy Bob Thornton 6. --Kerri Russell 7. Yellowstone--Kevin Costner 8. Maddam Secretary--Tea Leoni 9. Designated Survivor--Kiefer Sutherland 10. Homeland--Claire Daines 11. NCIS--Mark Harmon 12. Fargo—Kristen Dunst

Kirsten Dunst, Fargo FX Networks COST$ Big Budget Television Series

1. Orange is the New Black (Drama/Comedy) – 7 Seasons – $50 million/season – $4million/episode 2. ( – Moulin Rouge) – The birth of Rap-Hip/Hop Bronx NYC – 1 Season$120million budget 3. The CrownQueen Elizabeth – Most Expensive TV series Ever Made – $35,000 replica of her wedding dress – Life-sized replica of – $130million/season; $13million/episode 4. Amazon  Lord of the Rings (upcoming) – Set aside $1 Billion for 5 seasons (~$200million per season). – Making it the most expensive TV series Yet. 5. Legacy Series from the Past: Friends – Netflix spent $100 million to keep Friends through 2019. 6. Stand-up Comedy Specials: 1. Ellen DeGeneres--$20million for ONE stand up show. 2. Chris Rock. Netflix spent $40million for 2 stand-up comedy specials Number of Original Scripted TV Series 2009-18 Highest-paid actors: Netflix, HBO, Amazon, and Hulu

8. Aaron Paul (The Path, Hulu): $225,000 per episode

Jason Merritt/Getty Images etty Images 6. [TIE] Jeffrey Tambor (Transparent, Amazon): $275,000 per 4. Dwayne Johnson (Ballers, HBO): $400,000 per episode Hulu episode 7. [TIE] Julia Louis-Dreyfus (Veep, HBO): $250,000 per episode

Getty Images Amazon/"Transparent"

7. [TIE] Billy Bob Thornton (Goliath, Amazon): $250,000 per 5. [TIE] Emma Stone and Jonah Hill (, Netflix): $350,000 HBO episode per episode 3. [TIE] Peter Dinklage, Lena Headey, Kit Harington, Emilia Clarke, Nikolaj Coster-Waldau (, HBO): $500,000 per episode

Amazon Video

6. [TIE] Hugh Laurie (Chance, Hulu): $275,000 per episode AFR

5. [TIE] (, Netflix): $350,000 per episode

HBO

Hulu 2. Lauren Graham and Alexis Bledel (, Netflix): $750,000 per episode 6. [TIE] Sarah Jessica Parker (Divorce, HBO): $275,000 per episode

Reuters

5. [TIE] Joel Kinnaman (Altered Carbon, Netflix): $350,000 per episode

WB/CW 6. [TIE] Naomi Watts (Gypsy, Netflix): $275,000 per episode 1. Robert De Niro (Untitled, Amazon): $850,000 per episode Film & TV Salaries: Above the Line "Above-the-line" – The individuals who guide and influence the creative direction, process, and voice of a film or TV program. Script and story writers, producers, directors, actors, and casting.

• Agents (Lawyer):  $50,000 to $65,000; senior agents $200,000 $700,000; • DOPs/Cinematographers:  $2,000-30,000/week • Film Director:  $250k  $10m/film • TV Director:  $25,145 for a half-hour episode and $42,701 for an hour • PRODUCER:  $250K-$2M • COMMERCIAL VOICE ACTOR:  $3K-$1M • TV WRITER:  $3K-$6K A WEEK • FILM WRITER:  $100K-$1M A DRAFT BELOW THE LINE: The A to Z of Industry Pay “Below the Line” = The “crew.” Those people who are involved in pre-production, production, or post- production stages of filmmaking.

• EXTRA  $148-300/DAY • HAIRSTYLIST  $77K • ANIMATION DIRECTOR  $200K • LIGHTING TECHNICIAN (ENTRY-LEVEL)  $53K • ART DIRECTOR  $134K • LOCATION MANAGER  $112K • ASSISTANT ART DIRECTOR  $101K • MAKEUP ARTIST  $100K • BEST BOY  $92K • MODEL BUILDER  $68K • BODY DOUBLE  $33K • MUSIC MIXER $  111K • BOOM MIC OPERATOR  $87K • PAYROLL ACCOUNTANT  $66K • CAMERA OPERATOR  $96K • PERSONAL ASSISTANT FOR A CELEBRITY  $80K • CARPENTER  $61K • PROP MASTER  $59K • COSTUME DEPT. SUPERVISOR  $91K • PUBLICIST (STUDIO)  $93K • DOG HANDLER  $54K • SET DECORATOR  $104K • DIALECT COACH  $125K • SOUND EFFECTS EDITOR  $88K • EDITOR  $95K • TEACHER (ON-SET)  $88K • FIRST ASSISTANT DIRECTOR  $192K • TRAILER EDITOR  $81K • GAFFER  $59K • WIGMAKER, CLASS 1  $59K • GRIP  $102K Genre Theory 1. Genres are baseline “Formulas” 2. Standard “Codes” and “Conventions” – Story/plots – Setting – Actors – Action – Camerawork/Direction 3. Based upon: – History of what has worked/$$$ (Viewers) – “Trusted” and Predictable expectations (production & viewership) – Conservative viewing habits. “Known” + twist – Ease/Speed/Efficiency of production: Weekly 13-22 episodes – High volume production  Bingewatching – Syndication (5-10+ seasons) sold as “Packages” – Question: When and how can you BREAK from the GENRE FORMULAS? Will it be accepted and/or well received? Baseline TV Genres

1. Comedy—The Office, Parks & Rec, Jane the Virgin, Gilmore Girls 2. Cop/Crime—Hawaii Five-0, The Rookie, True Detective, CSI, NCIS, Blue Bloods, … 3. Courtroom/Lawyer—The Good Wife, Law and Order 4. Hospital/Medical—ER, Grays Anatomy, Nurse Jackie, Fire 5. Drama – Current Drama—, Suits, Friday Night Lights – Historical Drama—Game of Thrones, The Crown, The Vikings – Family Drama—, Everwood, Modern Family 6. Political—Jack Ryan, Bodyguard, House of Cards, Madam Sec. 7. Spy/Thriller—The Americans, Homeland 8. Science Fiction —Firefly, Extant, Humans, Westworld, Dr. Who 9. Fantasy —Stranger Things, Sinbad, Once 10. Superhero —Arrow, The Flash, Agents of SHIELD, Supergirl 11. Horror—Dexter, Walking Dead, Zombies – Serial Killer —Mind Hunter, Conversations w/a Killer 12. War — Band of Brothers, Crimson Tide, 13. Western —Hell on Wheels, Longmire…

Hospital v. Cop Genres The Rules, Codes, Conventions?

• Hospital/Medical • Cop/Detective/Crime Historical Dramas 1. (went globally viral—BBC/PBS Amazon/Netflix) – most critically well-reviewed TV show in the world – nominated for 11 Primetime Emmy awards – ranked as PBS’ highest-rated drama ever – average audience of 13.3 million 2. Mad Men (AMC Original) – Paved the way for Breaking Bad, The Walking Dead, and Better Call Saul. 3. Turn (American Revolution) 4. Manhattan (Manhattan Project) 5. Hell on Wheels (Transcontinental Railway) 6. The Get Down (The Birth of Rap/Hip-Hop) 7. Waco (Waco Texas, Branch Davidians) 8. Unabomber Manhunt Documentaries - Netflix

1. 2. (controversial Indian guru Bhagwan Shree , Oregon) 3. Dogs 4. (major event, 7 days before it begins) 5. Rotten – Global Food Supply 6. Chef's Table (World Renowned Chefs) 7. Abstract: The Art of Design 8. (Football Mississippi) 9. Conversations with a Killer: The Ted Bundy Tapes 10. The Day I Met El Chapo 11. (Flint Michigan) 12. (Buzz Feed topics) 13. Marching Orders (Marching Band)