PRO Tip Sheet: 5 Insights From This Week

This week on WrapPRO, we dug into how studios deal with serious allegations against major franchise stars, the post-"Barbenheimer" box office hangover and the tense negotiations between the Writers Guild and Hollywood studios. [5 Insights From WrapPRO]( This week on WrapPRO, we considered what's next for Disney, revealed the struggle for Latino representation at the heart of "Blue Beetle" and dug into where Hollywood's fraught negotiations over AI stand. [Read More on WrapPRO]( 1. [Watch Out, Apple - Another Disney Buyer Could Be Emerging]( By Peter Csathy | Source: [WrapPRO]( - Disney CEO Bob Iger has hinted at potentially divesting some of the media company's once-core assets, which has generated renewed discussion of the idea the company might be up for sale. Iger's hiring of former executives Kevin Mayer and Tom Staggs, now co-CEOs of Candle Media, as consultants has only spurred more such talk. - The company's stock has fallen by more than half from its 2021 levels. ESPN and other cable networks have seen particularly sharp drops in profits. - While Apple remains a leading contender to acquire Disney assets, Blackstone's backing of Mayer and Staggs positions them as serious contenders to buy some or all of the company. They're specifically consulting on ESPN, which could put them in a prime position to bid on it. - Iger has said he wants to keep ESPN but find "strategic" partners to bolster its shift to streaming. With his historic ties to Apple and reengagement with Mayer and Staggs, Wall Street is eyeing possible transformative deals at a company that was once better known as a buyer. [Keep Reading]( 2. [‘Elemental’ and Pixar Have Quietly Made a Box Office Comeback]( By Jeremy Fuster | Source: [WrapPRO]( - Despite a poor opening, Pixar's "Elemental" garnered a worldwide total of $423 million, with the highest global box office earnings for any original film this year. - “Elemental” saw significant success in South Korea, grossing a Pixar record of $48 million, resonating due to its themes of culture clashes and honoring family heritage. - Disney's challenge lies in effectively marketing Pixar's non-sequel animations in a saturated family entertainment market, ensuring pre-release buzz and sustained revenue streams post-theatrical release. - The upcoming Pixar film "Elio" faces uncertainty with release schedules due to the SAG-AFTRA strike but might be able to leverage lessons from "Elemental" to achieve successful box office numbers. [Keep Reading]( Join the ranks of high-powered industry leaders who read [WrapPRO]( every day. Want unlimited access to in-depth reporting, analysis, and industry data? [Upgrade to a subscription today](. 3. [Why Even Summer Box Office Flops Pushed Theaters to Strong Quarterly Results]( By Jeremy Fuster | Source: [WrapPRO]( - AMC Entertainment reported ticket sales of 66 million in the second quarter of 2023, marking the highest attendance since the fourth quarter of 2019. Cinemark's revenue jumped 27% year over year, swinging from a profit to a loss. - Films such as "The Super Mario Bros. Movie," "Guardians of the Galaxy Vol. 3," and "Spider-Man: Across the Spider-Verse" significantly boosted second-quarter box office earnings, with “Mario” alone grossing $574 million domestically. - Studios might not be making money on all the movies hitting theaters, due to outsized production budgets, but cinema chains are enjoying the steadiest business they've seen in years. [Keep Reading]( 4. [How ‘Blue Beetle’ Landed at the Center of a Historic Strike and a Latino Movement]( By Umberto Gonzalez & Kristen Lopez | Source: [WrapPRO]( - DC's "Blue Beetle" is the first superhero movie written, directed by and starring Latinos, mirroring the cultural significance of "Black Panther" for Black audiences and "Shang-Chi and the Legend of the Ten Rings" for AAPI viewers. - The double strike could disproportionately affect artists from underrepresented communities, potentially limiting the success of films such as "Blue Beetle" that cater to these audiences. - Despite myths suggesting audiences don't prefer films with BIPOC leads, movies like "Black Panther" and "Shang-Chi" have disproven this, yet underrepresentation persists with Latinos accounting for just 2.3% of leads in 2022 films. - WGA and SAG-AFTRA promotional restrictions during the strikes present challenges for films like "Blue Beetle," but also an opportunity to deploy different marketing strategies that don't depend on the availability of talent. [Keep Reading]( 5. [Why Studios Don’t Think AI Is an Obstacle to Ending the Strikes]( By Jeremy Fuster | Source: [WrapPRO]( - The Alliance of Motion Picture and Television Producers could reach an understanding with the Writers Guild of America about artificial intelligence, with studios expected to present detailed proposals on AI consent and usage restrictions. - Earlier agreements made with the Directors Guild of America included terms that required "meaningful consultation" on AI usage in projects, the first time a union agreement addressed the technology. - Disputes emerged between SAG-AFTRA and AMPTP over AI proposals related to performers' digital likenesses, including issues surrounding consent, compensation, and ownership of digital replicas. - A major disagreement revolves around the scope of AI consent at the time of employment, with concerns raised that actors could be pressured into providing consent as a condition of getting hired. - While AI discussions progress, significant sticking points remain, including SAG-AFTRA's proposed 11% minimum rate increase and a new compensation structure based on viewership data. [Keep Reading]( With a focus on delivering actionable intelligence, the PRO Tip Sheet empowers readers to stay ahead of the game in the industry. Want to go deeper? [Explore WrapPRO today](. [LEARN MORE]( TheWrap | 2034 Armacost Ave Los Angeles, CA 90025 [Unsubscribe](