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The TV/Video Streaming Revolution

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The TV/Video Streaming Revolution TELEVISION PARADIGM SHIFTS NetFlix, Amazon, Hulu, HBO, CBS, Sling, and Beyond NETFLIX 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” SHOWSGlobal Audiences The Game Changing Programs 1. Stranger Things (2016) 17 Emmys 2. The Crown (2016) 3. Breaking Bad 4. House of Cards 5. Orange is the New Black 6. 13 Reasons Why 7. Narcos 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 London, England. 2. Narcos – Genre International Crime Drama – Production Company Gaumont Television =US TV division of the French Gaumont. Independent studio based in Los Angeles, 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. Sense8 (The Wachowskis—Matrix) – Genre: Science Fiction – 16 Cities in over 13 countries – (The Wachowskis—Matrix) – $108million/season$9million/episode – Cancelled A-List Hollywood FILM Actors & Directors Shifing to TELEVISION 1. Rise in Quality of TV Stories & Characters – Web playground for a “new creativity” in story – MORE Character and Plot Development in TV – Different and “edgy” stories Matthew McConaughey and Woody Harrelson, True Detective HBO 2. “Cinematic” Production Values of TV 3. Longer: TV Series 13-20+ Episodes/Season 4. Not Dependent upon a single Pilot Episode or Nightly ratings (Advertisers) Claire Danes, Homeland Showtime 5. Bigger budget TV Productions (Lord of 1. Homecoming: Julia Roberts 2. True Detective: Matthew McConaughey and Woody Harrelson, the Rings, The Crown, etc.) 3. Extant: Halle Berry 4. Grace & Frankie: Jane Fonda 5. Goliath: Billy Bob Thornton 6. The Americans--Kerri Russell 7. Yellowstone--Kevin Costner 8. Maddam Secretary--Tea Leoni 9. Designated Survivor--Kiefer Sutherland 10. Homeland--Claire Daines 11. NCIS--Mark Harmon 12. Fargo—Kristen Dunst Kirsten Dunst, Fargo FX Networks COST$ Big Budget Television Series 1. Orange is the New Black (Drama/Comedy) – 7 Seasons – $50 million/season – $4million/episode 2. The Get Down (Baz Luhrmann – Moulin Rouge) – The birth of Rap-Hip/Hop Bronx NYC – 1 Season$120million budget 3. The CrownQueen Elizabeth – Most Expensive TV series Ever Made – $35,000 replica of her wedding dress – Life-sized replica of Buckingham Palace – $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 (Maniac, Netflix): $350,000 HBO episode per episode 3. [TIE] Peter Dinklage, Lena Headey, Kit Harington, Emilia Clarke, Nikolaj Coster-Waldau (Game of Thrones, HBO): $500,000 per episode Amazon Video 6. [TIE] Hugh Laurie (Chance, Hulu): $275,000 per episode AFR 5. [TIE] Drew Barrymore (Santa Clarita Diet, Netflix): $350,000 per episode HBO Hulu 2. Lauren Graham and Alexis Bledel (Gilmore Girls, 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/$$$
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