PRO Tip Sheet: 5 Insights From This Week

This week on WrapPRO, we took a look at a crisis PR whiz with a rising Hollywood profile, the true cost of the strikes to the studios and why blockbusters are breaking their budgets. [5 Insights From WrapPRO]( This week on WrapPRO, we took a look at a crisis PR whiz with a rising Hollywood profile, the true cost of the strikes to the studios and why blockbusters are breaking their budgets. [Read More on WrapPRO]( 1. [Hollywood Has a Blockbuster Budget Problem | Analysis]( By Scott Mendelson | Source: [WrapPRO]( - Disney is planning to make fewer, cheaper, better movies, and others in Hollywood would be wise to follow after several tentpoles failed to turn a profit due to exorbitant production and marketing costs. - The rising cost of blockbuster movies can be attributed to factors like inflation and pandemic-related costs, the latter including COVID testing, PPP equipment, social distancing and the added expenses from production delays and restarts. - High pay for established franchise actors are another factor. As sequels are produced, actors with established character associations can command higher salaries. - Cheaper tentpoles are possible, as evidenced by the success of "Barbie" and "Oppenheimer," which earned a combined $1 billion in North America on production budgets of $145 million and $100 million respectively. [Keep Reading]( 2. [Is Crisis P.R. Whiz Risa Heller Ready to Take On Hollywood?]( By Diane Haithman | Source: [WrapPRO]( - Crisis public relations expert Risa Heller has been making waves in the entertainment industry, representing high-profile figures such as Jeff Shell, Jeff Zucker and Harvey Weinstein in various controversies and earning a reputation for being experienced, assertive, and adept at handling personal and professional damage control. - Heller's feisty rhetoric in a standoff with Variety over a story about Zucker, the former CNN head, purportedly trying to buy the network illustrates her aggressive approach to protecting her clients. - Heller's also extended herself to Silicon Valley, helping Theranos founder Elizabeth Holmes with a flattering New York Times profile. [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. [What the Hollywood Strikes Are Costing the Studios]( By Kayla Cobb | Source: [WrapPRO]( - The ongoing WGA and SAG-AFTRA strikes have already cost California's economy an estimated $3 billion, and have resulted in nearly $5 billion in delayed spending, reduced revenue or other changes to the bottom line attributed to these strikes by companies like Disney, Netflix, Sony, Lionsgate and Warner Bros. Discovery. - Disney reported a $3 billion savings on annual content spending due to the strikes and other cost-cutting measures, while Netflix expects a $1.5 billion improvement in free cash flow for 2023 in part because of the strikes. - While some studios have experienced a short-term cash flow benefit from halted productions, most expect that spending to shift from 2023 to 2024, making it more a matter of timing. - Content suppliers like Sony and Lionsgate, meanwhile, have felt the pinch in lost revenue since they don't get paid for shows that aren't getting made. [Keep Reading]( 4. [Suits' Is a Streaming Hit - And a Good Case Study for Why Residuals are Such a Major Point in Guild Negotiations]( By Loree Seitz | Source: [WrapPRO]( - After ending on the USA Network in 2019, "Suits" experienced a resurgence as a streaming hit, accumulating over 12.8 billion minutes of viewing on Netflix and Peacock from June 19 to July 16. - Despite its success, most contributors to "Suits" won't receive significant streaming residuals. Ethan Drogin, a writer for the show, disclosed that he received only $259.71 in streaming residuals last quarter. - The streaming model has disrupted how residuals are paid, as it typically involves upfront payments and doesn't factor in show performance. - Striking writers and actors are demanding more transparency from streaming services as the residuals they once earned from hits have dwindled. [Keep Reading]( 5. [As Fox News Prepares for Republican Presidential Debate, Trump's Indecision Poses Unprecedented Challenges]( By Natalie Korach | Source: [WrapPRO]( - Fox News is set to host the first Republican candidate debate for the 2024 election next week in Milwaukee, but the Republican front-runner, former President Donald Trump, hasn't confirmed that he will participate and is increasingly expected to opt out. His abstention would have significant implications for the network's ratings and debate dynamics. - Despite facing indictment in four criminal cases, Trump remains the leading Republican candidate. He may choose to stage a counterprogramming media event that could draw viewers away from the Fox debate. - Trump's participation is seen as unlikely by some, including former CNN host Brian Stelter, due to concerns about the legal risk of statements during the debate and his reluctance to share a stage with low-polling candidates. [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](