INDUSTRY
Update: Amazon-MGM Merger On Hold
Update: Amazon-MGM Merger On Hold
The Federal Trade Commission is overlooking Amazon’s purchase of MGM at a vast $8.45 billion. The pressure brought on by unions and the world of progressive politics called on the FTC to deny the acquisition, resulting in the FTC to examine the proposed deal to either block it or demand the company to stand by certain conditions, such as decoupling Amazon Prime Video from the rest of Prime in order to receive approval.
The Strategic Organizing Center (SOC), a federation of labor unions represents almost 4 million workers, which pushed the FTC to examine Amazon’s purchase of MGM. The SOC includes the Teamsters, the Communications Worker of America, Service Employees International Union, and the United Farmworkers of America.
On August 11, a letter was sent to Holly Vedova, the acting director of the FTC’s Competition Bureau, from SOC Executive Director, Michael Zucker, which claimed that Amazon had already hired non-competitive practices in the streaming-video industry and the proposed deal would only strengthen its power resulting in detrimental outcomes for consumers, competitors, and the film industry as a whole.
“The merger would also create further harmful vertical integration in the film industry at large. The SVOD market has expanded at a rapid pace in recent years. In the process, the production and exhibition of video content has become increasingly vertically integrated. This integration creates a power imbalance between large, vertically-integrated firms and their smaller competitors,” said Zucker, SOC’s executive director. “It also creates incentives for SVOD providers to limit the content available to consumers via alternative exhibition channels, as well as filmmakers’ access to the increasingly vital content exhibition space that SVOD providers control. SVOD providers’ increasing vertical control also has implications for the integrity and diversity of content available to consumers and, by extension, freedom of expression itself.”
Amazon Prime members are offered Prime Video for free, which has been a huge driving force for member signups. Amazon considers Prime Video an extremely valuable component of their business model, which has resulted in Amazon Prime being one of the world’s largest loyalty programs. And while the MGM deal may be ‘small’ for Amazon, given that the e-commerce conglomerate reported their revenue to be $386 billion in 2020, it has the potential to hurt consumers, competitors, and the film industry.
“Allowing the MGM merger would exacerbate the trend towards vertical integration and create additional opportunities for Amazon to leverage its power in the SVOD and related markets in ways that will harm filmmakers, consumers, and other stakeholders,” Zucker said. “There is growing recognition that vertical mergers require more regulatory scrutiny than they have received in the past to prevent the strongest market players from utilizing their dominance in ways that harm competition, innovation, and consumers. The dangers of vertical integration are particularly acute with respect to dominant digital platforms such as Amazon because of their ability to leverage their gatekeeper power in one market into multiple other lines of business. This merger presents an opportunity for the FTC to curb Amazon’s expansion of power in yet another line of business and place reasonable limits on how one of the country’s largest and most dominant companies is permitted to compete. For these reasons, as described more fully below, we urge the Commission to block Amazon’s acquisition of MGM.”
On a post-merger call, Amazon’s Jeff Bezos boasted of MGM’s intellectual property, which also includes the James Bond franchise among others. However, Amazon Prime Video seldom ever mentions the intellectual property on any of the earnings calls, including the most recent one that was had in July.
The FTC is calling for the merger to either be blocked or placed under certain conditions. The reason being is due to the fact that Amazon has a strong history of having a great amount of dominance in the e-commerce industry, resulting in non-competitive and unfair practices, hindering its competitors, consumers, and the film industry.
“For these reasons, we strongly urge the Commission to reject Amazon’s acquisition of MGM. We have suggested conditions the FTC should place on Amazon if it allows the merger,” said Zucker. “These include requiring Amazon to 1) unbundle Prime Video and delivery and price Prime Video at a market rate; 2) provide competitors neutral access to its Fire TV Stick device and cloud computing services; 3) limit the imposition of all-rights contracts on content makers; and 4) share viewership data with content makers with which it contracts.”
The SOC and those associated with the federation submitted a petition for the FTC to evaluate a wide range of non-competitive practices created by Amazon, along with another letter in regards to the e-commerce conglomerate’s practices throughout the COVID-19 pandemic.
It is certainly no secret that Amazon’s working conditions have been targeted and called upon, as well as many lawsuits filed against the e-commerce giant for its non-competitive practices. Beyond that, there have been a number of lawsuits filed against Amazon regarding antitrust legislation and more.
“Because Amazon is leveraging its e-commerce power in the SVOD market, and maybe engaging in predatory pricing by operating Prime Video at a loss, Amazon should not be permitted to merge with MGM and further enhance its market power in the SVOD market,” said SOC’s Zucker. “If Amazon is permitted to complete the acquisition, the Commission should require Amazon to decouple the Prime delivery service from the Prime Video service and price its Prime Video membership to reflect its true cost.”
Amazon requested that FTC’s recently appointed Commission Chief, Linda Khan, recuse herself from the merger review. Khan is a major proponent of redefining and developing the breadth of antitrust in modern times.
In a letter sent on June 30 by Amazon, it said, “[Khan] has on numerous occasions argued that Amazon is guilty of antitrust violations and should be broken up. These statements convey to any reasonable observer the clear impression that she has already made up her mind about many material facts relevant to Amazon’s antitrust culpability.”
The FTC plans to take a very close look at the Amazon-MGM deal; however, it is unclear whether Khan will be recused from the review.
About Vedette Finance
Tarek Anthony Jabre began his career in finance, dealing with FX currency trading, portfolio management, and private clients funds. In 2012, he founded Vedette Finance, a Los Angeles-based film development, and finance company. Vedette Finance is known for reaching a wide international network of finance and talent. Vedette Finance’s fundamental goal is to develop its premium value slate, creatively, and structure the financing to produce a diverse range of high-quality film projects.
For more information about Vedette Finance, visit www.VedetteFinance.com.
The Compromise- AMC and Warner Bros to Give an Exclusive 45 days to Theaters Prior to Streaming
The Compromise- AMC and Warner Bros to Give an Exclusive 45 days to Theaters Prior to Streaming
AMC and Warner Bros. have decided that the studio’s movies will be exclusive to the theatres for 45 days prior to streaming services. This means that movies by Warner Bros. will not be available immediately like they previously had been on streaming services throughout the pandemic. AMC’s CEO, Adam Aron announced the news that Warner Bros. 2022 movies, including The Batman, Sesame Street, and others will not be available on HBO Max or at home until after they have been released in theatres for a solid 45 days.
Similarly, the entertainment conglomerate had also made an agreement with Regal Cinema. While these huge announcements are really big changes–even if it’s just for a short period of time–it
goes to show that the streaming experiment that has become extremely popular among all studios may be heading for a change. Although movies won’t be available the same day that they are released in theatres on streaming services, this does not mean that things are exactly getting back to how they were pre-pandemic. In fact, theatres previously had exclusive claims on showcasing movies from 75 to 90 days, which is significantly longer than what is happening now. And while this is quite a big deal for both the studio side and theatre side, Warner Bros. is certainly not taking its focus away from streaming services. According to the team at AMC, all films being released in 2022 by Warner Bros. will experience the exclusivity window, but HBO Max would be releasing 10 exclusive films a year, which is also a huge announcement for the streaming platform and the industry as a whole.
And while this is quite the announcement for Warner Bros., this does not mean that other studios and movie theatres aren’t also hopping on this trend. In fact, other major studios and theatres like AMC and Universal have negotiated a deal for as little as a 17-day exclusivity window, and Paramount and Disney will be doing a 45-day exclusivity window. Most major studios have their own respective streaming services to sell, but despite what is happening right now, movie theatres are still extremely important to the business. And to no surprise, AMC also said that they have active communication with every major studio regarding exclusivity windows.
This can definitely be a huge win for all parties: studios, theatres, filmmakers, actors, and movie-goers. When studios first decided it was best for streaming and theatre releases to be on the same day, theatres certainly took a hit and many thought that that would be the end of in-theatre movies. Unsurprisingly, actors were also displeased with the same-day releases for streaming and in-theatre movies, given that many actors involved have their pay tied to the box office performance. For instance, Scarlett Johansson suing Disney due to the Black Widow is just one major example. For studios, not only have the theatres and actors shown their displeasure but filmmakers, of course, too. Therefore, it is not difficult to see why studios are considering going back to the old ways with a compromise–although slowly–and hopefully will come with even shorter exclusivity windows as time goes on.
With all of the groundbreaking news being announced, AMC has also reported that it’ll be opening about a dozen new theatres around the world. However, it doesn’t stop there–AMC has also announced that it will be acquiring some theatres from the Arclight and Pacific Chain, which previously announced that they wouldn’t be reopening due to the pandemic earlier in the year. The great thing about all of this is that movie lovers can enjoy their favorite movies the “old-school” way in theatres, rather than watching the release of a movie at home.
For those who enjoy a movie in-theatre, studios and theatres are working together to keep this experience alive. While watching the release of a new movie at home has become more common and a much more convenient way of enjoying a new movie, the novelty of attending a movie theater to watch a movie that many eagerly await the release of has not been lost.
With 2022 being poised as the theatre-going year, this makes it an extremely exciting time for studios, theatres, filmmakers, and movie-goers alike. There are a number of huge releases, including The Batman, Thor: Love and Thunder, Black Panther: Wakanda Forever, Jurassic World: Dominion, Spiderman: Into the Spider-Verse 2, Avatar 2, among many others. With that being said, there is no shortage of big releases in 2022, making it a film season many are looking forward to. While these enormous announcements are thrilling, that doesn’t mean that studios are completely disregarding streaming services. So regardless of your preference, in-theatre or at-home movie watching, there will always be something for everyone. But the big news here is that this will hopefully be a step towards ‘normalcy’ and confidence in the future for the movie industry. If all goes as planned, movie-goers will not only be able to see these hit movies in theatres but also get to enjoy others in the comfort of their own home. Regardless, studios, theatres, filmmakers, actors, and movie-goers will soon be able to feel the excitement and exclusivity of being able to watch a movie for the first time ever in theatres.
About Vedette Finance
Tarek Anthony Jabre founded Vedette Finance in 2012, a Los Angeles-based film development and finance company. Vedette Finance has established itself as a company committed to dealing with projects at all different stages of production. Vedette Finance’s objective is to develop its premium value slate, creatively, and structure the financing to produce a diverse range of film projects. For more information about Anthony Jabre, CEO and Founder of Vedette Finance, visit www.VedetteFinance.com
Emmy 2021 Nominations Streaming Services Standout
Emmy 2021 Nominations Streaming Services Standout
Streaming platforms have become a strong force within the film and entertainment industry over the last couple of years, especially this past year. The impact of streaming services is demonstrated through the high number of nominations seen at this year’s award season, including the 2021 Emmy Awards.
HBO/HBO MAX in the Spotlight
The premium cable network, HBO, is not an amateur when it comes to award nominations. Known for their historically intense dramas and dark comedies, HBO consistently receives recognition for their work. Their streaming platform, HBO Max, is proving to be no exception. HBO Max, a streaming platform combining HBO classics, including TV shows, movies, and HBO Max Originals announced an impressive number of Emmy Awards nominations, with a total of 130 nominations. Netflix followed right behind HBO and HBO Max, with a total of 129 nominations.
The network, HBO, landed 94 nominations, while the streaming service, HBO Max, scored another 36 nominations, giving them a combined total of 130 nominations. HBO has put out many streaming favorites, which has resulted in a huge number of nominations, even enough to top Netflix. HBO Max was launched just last year and certainly has revolutionized the streaming service industry, which has shown in the great number of nominations.
Streaming Platform Nominations
The amount of Netflix nominations, 129 in total, was down 19% compared to last year when the streaming giant hit its record nominations of 160. Disney Plus experienced a significant jump compared to last year and had 71 nominations in only its second year of eligibility.
Although the Emmy Awards does not bring in the same type of viewership as it did in past years, the fact that streaming services are being widely recognized in different awards ceremonies is noteworthy. In addition to HBO Max and Netflix nominations, Hulu, Disney Plus, Amazon Prime Video, Apple TV, Peacock, and numerous other streaming services were also nominated, which further proves that the streaming service industry has changed the dynamic in awards ceremonies and the film and television industry as a whole, making it a great opportunity for creators and actors alike.
As a result, streaming services of all kinds have overshadowed broadcast networks for at least the last decade and by the looks of it, will continue to do so in the coming years. The nominees chosen reflect the dominance of streaming services, the demand for it, and the potential that they all have. Streaming services had over 300 nods, which resulted in more than cable and broadcast television combined. The world’s largest entertainment company, Disney, was the leading company overall, which includes a number of networks, like ABC, Freeform, FX, and Hulu, totaling to 146 nominees. While the audience viewership of the awards programs are on the decline–given that the 2021 Oscars was at a record low (Oscars 2022 will include a streaming movies category)–the awards themselves are highly coveted to those in the industry. And still, these accolades are greatly honored for the creators and actors involved. Streaming services have certainly made their mark in the world of awards ceremonies, especially now more than ever as more companies and networks are turning to streaming. And while many streaming shows and movies have made their breakthrough for their astonishing number of nominees, few have won in major categories. Despite that, it doesn’t mean that the opportunity isn’t there. Perhaps that will give creators the push they need to qualify for major categories.
When and How to Watch the 73rd Annual Primetime Emmy Awards
The 73rd annual Primetime Emmy Awards will air live on Sunday, September 19, 2021 at 5 pm PT/8 pm ET on CBS and on Paramount Plus for streaming. Hosted by Cedric the Entertainer at the Microsoft Theater in Downtown Los Angeles, CA, this year’s Emmy Awards will be one that you will not want to miss.
History of the Emmy Awards
The Television Academy was first established in 1946 by Founder, Syd Cassyd, with the help of five charter members, with the objective to help television industry professionals develop the art and science of television. As of July 2021, the Television Academy now includes 16,000 voting members, within 29 Groups representing specific aspects of the Television Industry. The first Emmys, in 1949, were presented at the Hollywood Athletic Club in Los Angeles, CA. Tickets to attend cost only $5.00 at the time.
How to be Nominated for an Emmy
1. If eligible, a performer, program, or individual achievement must be submitted to the Television Academy.
- These can be submitted by the person themselves, or someone else who believes their achievement is noteworthy.
2. Following the submissions, the 16,000 voting members will choose which ones exemplify talent and excellence in their specific categories. This is considered the Nominations-round.
- For the 2021 Emmys, the Television Academy received over 8,000 submissions in a total of 119 categories.
3. The nominations-round votes are calculated, then checked by Ernst & Young Accountants.
- The official Emmy Nominees were announced on July 13, 2021.
4. Lastly, there is final-round voting. This is when the Emmy voters will vote for their favorites in all 119 program categories, as well as in the non-program categories, which can also be voted on by their Peer Group. For performers and individual achievements, the Emmy voters consider the best work of the season chosen by the nominees. For programs, the Emmy voters judge the best episodes of the season chosen by the producers.
- For final-round voting, the voting members must be eligible based on their peer group. They cast their votes online, verify that they have watched the content in consideration, and must cast their votes by August 30.
5. After the final-round voting, the ballots are once again tallied, then checked by Ernst & Young Accountants.
- The Emmy winners’ names are only known by the Accountants until during the live Emmy ceremony when they are then told to the Director of the Emmy Ceremony.
About Vedette Finance
In 2012, Tarek Anthony Jabre founded Vedette Finance, a Los Angeles based film development and finance company. Vedette Finance’s overall objective is to continue growing its premium value slate by developing and producing a diverse range of film and television projects. For more information, visit www.VedetteFinance.com.