Canadian Government Goes Off the Rails

 

U.S. media streamers forced to pay for Canadian content production

You've all heard about the trade war between Canada and the U.S.; however, one issue is over the Canadian 'Online Streaming Act', which the Canadian government passed into law. What Canada wants is for the U.S. media streaming platforms- Netflix, HBO, Disney+, Apple+, etc.- to be required to fund Canadian film and TV show production. What?

So far, the statute has been held up in the courts, while the issue has become part of the Trump administration's broader trade negotiations.

As one would guess, the Canadian producers are pushing the Carney government to enforce the law and force the streamers to subsidize Canadian domestic film and TV productions.

Reynolds Mastin, CEO of the Canadian Media Producers Association, stated, "Last night, the federal government stood up for Canada by refusing to agree to an inequitable trade deal. We look forward to working with the government to ensure that the Online Streaming Act, a key pillar of Canadian cultural and digital sovereignty,  is defended". What BS!

This whole scheme is nothing more than a money-grab by the Canadian content makers, who can't get anyone to subsidize their projects - even their own government. In reality, who needs their content?

The payment to the Canadian producers, primarily indie producers, is forecast at $600 million.

Politics are Ruining Film Festivals

It's very difficult these days to remain neutral regarding the political and cultural wars being waged across the globe. From Berlin to Venice to Cannes, the festivals are the targets for activism on all sides of the political spectrum 

Besides the political and cultural discourse, there is the raging debate as to whether or not to include AI-generated films in the festivals. Cannes Juror Demi Moore received a firestorm of social media trash-talk regarding her quote that "AI is here and so to fight it is to fight something that is a battle that we will lose."

Protesters at Venice Film Festival

The festivals are also under intense pressure to ban all Russian and Israeli film entrants. It appears that politics and cultural biases are overshadowing all other film genres - this is bad. Film festivals should be an open space to view, discuss, and judge artists and creatives and not be influenced by political and cultural agendas.

New Generation for Harry Potter

Over 200,000 'Harry Potter' books will be donated to schools and hospitals in celebration of this year's annual September 1st 'Back to Hogwarts Day'.

The publishers of the Harry Potter books (Scholastic, Bloomsbury, and Pottermore) are giving away the books to libraries, schools, and hospitals across the U.S. and U.K. to introduce a new generation to the world of Potter.

100,000 copies of J.K. Rowling's first book, 'Harry Potter and the Sorcerer's Stone,' will be donated to underserved communities in the U.S., in addition to 100,000 copies of the audiobook, which will be given to teachers affiliated with Book Clubs associated with Pottermore Audio.

The books are also available on the Harry Potter YouTube channel, Amazon Music, and Spotify.

Pickford Center to Get Facelift

Pickford Center for Motion Picture Study

The Pickford Center for Motion Picture Study, located in Hollywood, houses the Academy of Motion Picture Arts and Sciences' massive film archive.

The Center includes the 286-seat Linwood Dunn Theatre, often used for events and rentals, and is best known for screening restored and archival films.

The Academy, which owns the Center, just approved a three-year renovation that will begin this fall. The goal, expected to be completed in 2029, is to restore and modernize the facility.

The project includes constructing additional collection vaults, upgrading HVAC and other mechanical systems, a new roof, and enhanced lighting. The Center employs 55 and is located at the corner of Vine St. and Homewood Ave.

'R'-rating Has Lost Its Stigma

There was a time when movie producers and directors fought for their films not to be rated 'R.' But times have changed, and societal norms regarding violence, nudity, profanity, drinking, and drug taking have all been given a 'lesser evil' status. Streaming platforms, video games, podcasts, and social media have all gotten less restrictive.

So, it isn't a surprise that 'R'-rated films are not shunned as before. A case in point is the recent blockbuster, 'The Odyssey', which has grossed over $1.5 billion globally, making it the highest-grossing 'R'-rated film of all time - beating out 'Deadpool & Wolverine' for the top spot.

It also makes it the highest-grossing film in Matt Damon, Anne Hathaway, and Robert Pattinson's careers.

The film is an adaptation of Homer's epic poem 'Odysseus' and is expected to be a big winner during the upcoming awards shows.  

Along with 'Spider-Man' and 'Toy Story 5', the 2026 summer box office has grossed over $4.25 billion domestically, a 24% increase over last year's take.

AI Courts Content Creators

OpenAI hosted a lavish weekend event called 'Your Only Famous Online'. The over-the-top, exclusive invitation-only event was held at Wildflower Farms in Gardner, NY, on the Hudson River. One of the attendees termed the event "the dreamest weekend ever."

OpenAI, which runs ChatGPT, termed the event a place for "healthy debate with social media creators and tech-forward influencers."

The lavish weekend soiree was fully funded by OpenAI. A spokesperson for OpenAI stated, "Creators are an important part of our community and how people get information and learn about our products. We welcome healthy debate as AI becomes more prevalent, and we want creators to engage with us, attend our events, ask tough questions, and learn what AI is."

Meeting room at Wildflower Farms

The event wasn't cheap. The 140-acre Wildflower Farms boasts free-standing cabins and cottages costing from $2,200 to $5,400 per night. OpenAI picked up the tab for lodging and all meals, pre-and post-cocktail hours, and spa time and services.

The battle is on for who will control social media, the AI providers or the current social media platforms.

IMO, this is just the beginning of AI companies courting content providers and wooing them away from their current providers.

10 Best Documentary Films of All Time

I have a passion and revere the cinema. Having worked in the motion picture industry for over three decades, I have made it my business to visit the cinema on a regular basis to view as many films as possible and in varied genres. However, I am not a cinephile.

Recently, the editors at the Hollywood Reporter compiled a list of the top 10 documentary films of all time. Here is the list:

10. 'Paris Is Burning' - 1990

  9. 'In Jackson Heights' - 2015

  8. 'Sans Soleil' - 1983

  7. 'Night and Fog' - 1955

  6. 'When We Were Kings' - 1996

  5. 'Hoop Dreams' - 1994

  4. 'The Gleaners and I' - 2000

  3. 'Shosh' - 1985

  2. 'Stop Making Sense' - 1984

  1. 'Grey Gardens' - 1975

I saw only one of these films, 'Paris Is Burning'

Central Casting Goes Nation-wide

 

Movie and TV extras now have more opportunities to get employment

As the production of movies and TV shows moves out of four or five major U.S. content production areas, the casting of both character actors and extras has moved as well. 

Central Casting, the largest provider of extras and character actors to the film and TV industry, is now operating in all 50 States. It had previously operated out of production hot-spots California, New York, New Jersey, Georgia, and Louisiana. 

"Production is no longer confined to a handful of markets, and our clients are increasingly looking for casting solutions that can move with them", says Toni Avalon, Casting VP at Central Casting. "We're moving with the industry and where it's headed."

Central Casting will offer casting, payroll, and compliance services nationwide. 39 U.S. States now offer film and television tax incentives and are now competing directly against Hollywood, New York, New Jersey, and Georgia. 

IMO, both movie and TV production will become more local. Movie sets can now be made to look like any place in the world using AI. However, I believe that over time, the casting of extras will be entirely AI-generated.

Spider-Man Ping Pong Table

 

Spider-Man Ping-Pong Table

A one-of-a-kind Spider-Man table was manufactured by '11 Ravens', a high-end furniture manufacturer.

 The Spider-Man-inspired table was recently unveiled and features the signature of the late comic book icon, Stan Lee, who created the character.

The table is priced at $480,000 and features a red spider web motif. It is a ping-pong table manufactured to the highest quality. It will be sold for at least the asking price.

This is the only one ever to be made.

Sundance Punts on AI Festival Entrants

Eugene Hernandez, Sundance Director, is welcomed in Boulder

 As reported in a prior post, the Sundance Film Festival is moving from Park City to Boulder. The reason for the move is that the Festival has outgrown its Utah home. The Boulder venues offer much more space and are all within walking distance of one another.

The Festival will have four major competition categories: U.S. dramatic, world cinema dramatic, U.S. documentary, and world cinema documentary. There will also be an Offscreen category featuring live podcast-recording entrants. A new sub-category, the New Frontier, will feature "cutting-edge" films; however, there was no mention of  AI-generated content being allowed.

Sundance is working with Dolby to complete the necessary sound and screen upgrades to the Festival venues.

IMO, Sundance is skirting the AI issue. Why? My guess is that they are being pressured from the Hollywood community and its known opposition to AI-produced content. Eventually, Sundance will have to bow to the technology, as will all of Hollywood.

Sundance is the largest and longest-running independent film festival in the U.S.

One Man's Conversion to AI Produced Movies

 "The idea of an AI-generated actress terrified me. The notion of a machine replacing a movie set offends me", so says Jonathan Yunger, Millennium Media's executive."However, the industry has made it impossible to produce a movie as the costs have outstripped any reasonable revenue predictions. Additionally, new talent in directing, scriptwriting, or acting have no chance at even a shot, because no producer can justify the risk in terms of cost/benefit."

The point of bringing AI into production is not to make films without people. It's to make movies that were impossible to fund by removing functions from the production process. AI doesn't change the art; it changes what gets greenlit. Integrating AI workflows into the pre- and post-production process allows for more creativity and more output.

Yunger just produced a short AI-generated movie, entitled 'Echo Hunter', whereby the movie used human actors but AI-generated visual effects and animation. The movie cost $50,000 to produce; it has had over 600,000 views on YouTube.

Yunger with Scott Eastwood on set of movie "Lucky Strike"

Yunger is right; AI is coming in-house to movie production at all of the studios and independent content creators. It should be used as a new tool in creating more and better content.

Staff Bleeding Continues in Hollywood

 

As movie production grinds to a halt, Hollywood studios are still laying off hundreds.

The latest is Disney, which announced it was axing hundreds of jobs in its Pixar, National Geographic Productions, and at ESPN Entertainment. This will be the third round of layoffs for Disney this year, and others will follow.

Josh D'Amaro, Disney's new CEO, stated, "We have looked at ways in which we can streamline our operations throughout the company to ensure our continued delivery of world-class creativity and innovation."

IMO, the staff reductions will continue throughout the entertainment industry at all levels and in all sectors.

Mouse Meets Relish

 

Disney meets Kraft Heinz

Disney and Kraft Heinz inked a multiyear brand deal that involves bringing KH brands to Disney films, TV shows, theme parks, and cruise business.

The deal includes 10 KH brands, including: ketchup, cream cheese, mac and cheese, and mustard, which will all be prominently displayed in Disney content and sports events.

Todd Kaplan, KH Chief Marketing Officer, says, "This allows us to show up in mealtime situations that matter most to consumers. Having a shared experience throughout all of Disney's iconic brands and sporting events."

KH is one of the largest marketers in the U.S. Kaplan added, "This is about merging one of  America's best-known entertainment brands with the owner of the best food brands."

IMO, product placement in films and TV shows has long been the norm. How impactful these 'ads' are on the fan base, in my opinion, is negligible. Having KH products at Disney parks and cruises,, again, is a big yawn.

No financials of the deal were disclosed.

By: Jim Lavorato

AI Should be Great News to Movie Exhibitors

 Shortly, the cost of movie-making will drop dramatically. A film that cost $100 million (and in many cases never gets green-lit) will, with the use of AI, cost only $30-40 million.

All of the background, props, animals, special effects, and even actors will be AI-generated. What this means is that studios and other content creators will be producing a lot more content.

The number of films released could double or triple. Blockbuster films will be the norm and not the exception. Exhibitors will have a lot more choices in what they screen and really cater to their demographic.

Tilly

The next 5-10 years will see a shift in the movie-making process and rewards into the hands of exhibitors. This shift in content control has already begun. AI-generated actors, like Tilly Norwood, are already being used - she stars in the first of many films and can be seen in the upcoming comedy-drama 'Misaligned'. Norwood represents a new form of digital art. She has her own media accounts; see her on Instagram and other media platforms.

AI will be the much-deserved panacea the exhibition industry has been waiting for. Lots more content means more admissions.

Media Billionaires Summer Camp

Sun Valley, site for media and entertainment meetups

 Corporate mega-deals were made in executive suites and conference rooms, but no longer. The deals are now made at mountain cabins or villas at remote and exclusive resorts. Their private Gulfstream or Lear jets dutifully waiting to depart on a moment's notice. ready at the waiting 

Such was the scene last week, in Sun Valley, Idaho, when the moguls of media met to discuss the future of entertainment.

All the new CEOs of the entertainment giants were present: David Ellison, Paramount, and Sundance (and most likely the new head of Warner Bros.). Disney's new CEO, Josh D'Amaro, and Comcast's new co-CEO, Mike Cavanagh.

Musk at the meetup in Sun Valley

Also attending were Apple's appointed CEO, John Tornus, and the current CEO, Tim Cook. Netflix's Ted Sarandos, Sony Pictures head Ravi Ahuja, Lachlan Murdoch of Fox, YouTube's Neal Mohan, and Amazon's Jeff Bezos - to name several. 

In addition, a cadre of AI platform honchos, including Anthropic's Dario Amodei and OpenAI's Sam Altman.

Their agenda centered on geopolitics, mergers and acquisitions, and new technologies transforming how entertainment is produced, distributed, and monetized. This is where mega-deals are spawned and where the media and entertainment's future is determined.

Film and TV Production Has Left Hollywood - Can It Be Resurrected?

 As a follow-up post to "Can A Republican Save Hollywood", I wanted to delve deeper into the reasons film and TV production is fleeing Hollywood, and can providing production tax credits (be it State or Federal) turn the tide, or is it a losing battle?

'Baywatch' reboot almost didn't get produced

For example, "Baywatch," a highly successful weekly TV series in the 1990s, was recently rebooted by Fox. Governor Gavin Newsom bragged that the show was "back to where it belongs, be it for $21 million in State credits. However, local regulations and restrictions curtailed production, and the project was put on ice until Newsom and LA Mayor Karen Bass intervened.

After 100 years of dominating the entertainment industry, Los Angeles/Hollywood film production has bowed to globalization, ease of communications, and unrestricted travel to countries that have opened their arms to film and TV production, at a fraction of the Hollywood cost.

So, the answer is to produce in less expensive U.S. States, or even cheaper overseas locations. Over 81 countries have embraced film production as an economic development must.

Los Angeles has lost over 73,000 movie and TV production jobs since 2022 and the bleeding continues.

IMO, State and even Federal production credits may help, but they don't address the underlying problem of the too-high costs involved in Hollywood production. 

Enter the use of AI, which will cut costs dramatically. Yes, far fewer people will be needed to produce a film, but it's better than losing the whole industry. 

Can the World's First Trillionaire Change Media, Entertainment, and Telecom?

 

SpaceX and Tesla, the two entities managed by Elon Musk, are on a collision course with the media, entertainment, and telecom industries. - and he has the means to do just that.

SpaceX is rapidly expanding its broadband internet offering through its Starlink service, which currently includes cell phone and web access. This is in direct competition with Comcast, Verizon, and AT&T, to name a few.

Through Spacelink's xAI division, video models are being developed using Grok (the SpaceX AI platform), which will have a significant disruptive impact on Hollywood. 

Musk has built close relationships with several Hollywood power players, some of whom are investors in SpaceX, whose recent IPO went over the trillion-dollar mark, the first in history.

IMO it's just a wait-and-see. Musk has plans for entertainment and how it's made and distributed. SpaceX dwarfs any competition it may have. For example, Disney is worth $175 billion, and Netflix is worth $340 billion - nowhere near the value and financial capacity of SpaceX.

IMAX Is For Sale

 IMAX, the sole and standalone large format cinema company, is up for sale. It's looking for a suitor in an all-cash deal.

Naturally, AMC Theatres and Cinemark Theatres are possible buyers, but others such as Apple, Sony, and Netflix are also in the mix.

For Apple, the IMAX purchase would be equivalent to a rounding error on its balance sheet and would make a good partner for Apple+.  And let's not leave out Amazon and Disney. What is agreed to is that IMAX would remain an entity unto itself and not be merged into another existing cinema business.

In the first quarter of this year, IMAX reported revenue of $81.4 million with income of $6.1 million. So, although not that large, it has a global, well-recognized brand, which could enhance an existing media brand.

 IMAX would certainly benefit if it diversified beyond Hollywood tentpoles and included local language and alternative concerts, such as screening live performances. 

As one would expect, IMAX stock has risen due to the buy-out speculation, rising to $37.50 (as of this post), up over 11% for the month. 

IMO, IMAX will be sold for a cash deal in 2026.

Will A Republican Save Hollywood

 Hollywood and the greater cinema industry lean heavily Democratic, so wouldn't it be ironic if a Republican saved the film industry in the U.S?

Steve Hilton has a narrow lead in the California gubernatorial primary race

Steve Hilton is the current front-runner in the gubernatorial race in California, and he's a Republican. Hilton has a plan to save Hollywood production and jobs. He has stated that as part of his agenda, there will be a tax credit that would go as high as 60% of the production costs and would never go below 40%. 

Today, the rate sits at 35% with certain restrictions. Under Hilton's program, this would be the most generous film production tax credit in the country.

Additionally, Hilton says he does not want the credit capped (it is currently capped at $750 million per year). Under the Hilton plan, the tax credits could also be used for post-production and above-the-line costs, neither of which is currently permitted.

Hilton announced his film production plan after meeting with members of the Motion Picture Association. 

Other candidates, following Hilton's lead, have now stated they, too, would propose expanding the film tax credit. Democrats Matt Mahan and Tom Steyer quickly jumped on board after Hilton's proposal.

The issue is that film production in Hollywood and in California generally has seen a reduction of more than 50,000 jobs in just the last several years as studios cut back on Hollywood productions, preferring cheaper alternatives. Hilton also proposed a 'Governor's Expediter' role for entertainment shoots, revamp the Callifornia Film Commission, and require that credit applications be adjudicated within 30 days of submission.

The 60% credit would make production in Hollywood very inexpensive, countering the impact of lower costs in other States and overseas. 

Hilton says, "I don't want to be reckless with resources, but if we want to really change behavior, we may have to do something extravagant." He also stated that, depending on its success, the plan would run for a fixed period, probably five years.

"I've been hearing for months about how hard it is to shoot in Los Angeles," said Hilton. "We would have an office run by someone who's just a bulldozer when it comes to bureaucracy and who could just get on the phone to move things along."

Hilton hasn't spoken (nor have any of the other candidates) about AI drastically cutting the cost of movie production and the need for physical shoots.

Hilton currently maintains a narrow lead in the polls (at 19%) over all other primary candidates.

 

Screening 'Live' Concerts at Cinemas

 

Swift's Life of a Showgirl

Screening live concerts at cinemas is a great idea and opens a new chapter for cinemas to increase profits. In previous experimental programs with the Met Opera or other notable content, the screening of live concerts has never really been addressed.

Live concerts allow fans to enjoy seeing their favorite artists perform without the high cost of attending in person and the inconvenience of getting to and from the venue.

Being able to view a concert in real time on a large screen, with comfortable seating and great sound, at a fraction of the cost of attending in person, is very appealing.

AMC Theatres has just introduced 'Arena One' to do just that. Tickets range from $40 to $75, depending on the artist and market. So, even at a 50% payment of gross admissions for screening the concert, the cinema's profit margin is high, and with the added benefit of concession sales.

This concept is a great way to utilize cinema venues and attract a demographic that will drive repeat business and additional attendance for 'live' concerts and movies.

This started with Taylor Swift bypassing the Hollywood studios and going directly to AMC to screen her 'Life of a Showgirl' concert.

The Chief AI Officer

 

Former YouTube exec Kathleen Grace will be Lionsgate's AI honcho

Most large and mid-sized companies are going to add a new position to their executive ranks: the Chief AI Officer. A person devoted to overseeing the firm's use and adoption of AI.

The Trump Administration has an AI Chief, David Sacks, holding the rank of Senior Advisor to the President. Lionsgate Studios is the first studio to appoint a CAIO, hiring Kathleen Grace, a former YouTube executive, to oversee Lionsgate's AI development; others will follow. 

The job of the CAIO is to build and implement an AI strategy to alter existing production, marketing, distribution, and administrative workflows. 

We're in the early stages of AI development and use, and it will vary with each business. The vision being that AI will support the workflow processes to become more efficient and less costly. And in some cases, replace them. 

New technologies have always shaped society and how we live and function. The Industrial Revolution of the early 1900s, the introduction of railroads, the automobile, electricity, flight, the PC - the list goes on. AI is no different. It will happen, be embraced, and have a significant impact on humanity.

AI forces us to think about what we're doing, no matter what it is, and improve upon it. Consider AI to be your co-partner and collaborator, expanding your capabilities.  

How AI Will Impact Filmmaking - Just Look at India

 

This film used AI exclusively in production

Without unions and film regulations and restrictions, India has become the most consequential experimenter of AI filmmaking - and its endeavors may become the future of the cinema industry.

The Indian filmmaking community has embraced AI. Every stage of the movie-making process - writing, pre-and post-production, special effects, etc. - is being reshaped by AI, and it has become an indispensable collaborator. 

The contrast between Hollywood and the Indian adoption of AI is profound. All of the U.S. film industry unions and guilds have fought to install guardrails around the use of AI, but as these internal battles continue, India and, to some extent, China have moved on.

In India, there are no industry unions or guilds, and no employment protection regarding the use of AI. The result is that AI is now a part of every facet of Indian filmmaking. For example, a new sci-fi series, called 'Warlord', will be created entirely using AI tools. It's estimated that over 80% of Indian films are using AI, and there is no backlash from audiences; it's transparent to them.

Ideally, the future of filmmaking will be a hybrid. Actor and performances will be shot in traditional ways, but the use of AI for site shooting, scriptwriting, special effects, created environments, etc., that require huge budgets will be AI-driven. Right now, in India, a film that would have cost $200 million to produce can be made for $40 million. 

Is the Cinema Going the Way of Opera and Ballet?

Is the cinema industry broken?

Is the cinema becoming passe? Will it become an entertainment vehicle left to cinephiles and entrenched fans and bypassed by the average consumer?

These are valid questions, given the changing landscape of entertainment, and the movie industry's long-term survival is doubtful. Unless movie production becomes less expensive, and cinemas have a 45-day release window, the movies may go the way of the opera or ballet. 

That is why the movie industry should embrace and not fight AI and robotics in the production of films and their distribution. Without doubt, AI will have a massive impact on the film industry. The best answer in confronting these technological changes is not to fight them - as Hollywood is doing - but to embrace and use the tech advances to produce more product, at a lesser cost and with more creativity.

Gone is the heyday of the golden age of Hollywood. It is being replaced by algorithms, AI-generated actors, and robotic cameramen. Creativeity is the key to Hollywood's survival; if not, movies will be relegated to a passe entertainment vehicle used only by a few hard-core movie buffs and cinema historians.