PRO Tip Sheet: 5 Insights From This Week

Over the weekend, Israel experienced significant violence; Hollywood insiders weighed in, A24 announced a strategic shift, questions arose about insuring Tom Cruise, and the success of Universal's "Exorcist" investment was scrutinized. [5 Insights From WrapPRO]( The world was rocked by violence in Israel last weekend, and we spoke to insiders in Hollywood about their personal connections to the tragedy and why some major companies were slow to publicly respond to the terrorist attacks. We also broke the news that beloved indie studio A24 is pivoting its strategy to make and acquire more commercial fare, dove deep into the impossible mission of insuring Tom Cruise and broke down whether Universal's $400 million bet on the "Exorcist" franchise has gone bust. [Read More on WrapPRO]( 1. [‘Disbelief, Rage and Anger’: Israelis in Hollywood Plead for Support in War With Gaza]( By Jose Alejandro Bastidas | Source: [WrapPRO]( - Casting Networks co-CEO Rafi Gordon expressed immense sadness and compared the conflict's emotional impact to that of a "9/11 kind of moment." - MRC co-founder and co-CEO Modi Wiczyk emphasized the historical futile efforts in justifying violence and advocated for seeking justifications for peace after surprise attacks by Hamas led to significant casualties. - The entertainment industry has a significant connection to Israel, with notable production surges from Israeli companies like Keshet International and the creators of Netflix's “Fauda” actively involved in helping during the conflict. - Social media narratives rapidly shifted, with voices critiquing Israel despite the immediate wave of sympathy after the attacks, and notable figures like “Grey’s Anatomy” showrunner Krista Vernoff expressing that mass murder is inexcusable. - Hollywood professionals, including Modi Wiczyk, are urging for a return to discussions of peace and advocating against further escalation of violence in the region. [Keep Reading]( 2. [‘The Silence Is Deafening’: Hollywood Companies Tread Lightly in Denouncing Hamas Violence]( By Sharon Waxman | Source: [WrapPRO]( - Most Hollywood entertainment companies have been cautious in making public statements regarding the Israeli-Palestinian conflict, with a few like Paramount and Warner Bros. Discovery expressing clear support for Israel. - A notable challenge for Hollywood in addressing the conflict is the industry's significant Jewish presence, recent influx of investment from Gulf states, and the need to appease a politically neutral Wall Street. - Michael Sitrick, a crisis manager, highlighted the minimal risk in CEOs addressing controversial topics through internal memos, as opposed to public statements. - PR expert Molly McPherson emphasized the complexity of the situation and the challenges of speaking out due to potential backlash and misunderstandings surrounding the conflict's historical context. - Anti-Defamation League CEO, Jonathan Greenblatt, criticized the industry's silence, likening the violent acts to historical atrocities and emphasizing the significance of condemning acts of terror. [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. [A24 Expands Strategy From Arthouse Gems to More Commercial Films]( By Umberto Gonzalez & Drew Taylor | Source: [WrapPRO]( - A24, known for its unique and meme-able movies, is shifting its strategy to include more mainstream projects, exemplified by their pursuit of rights to the “Halloween” franchise and other big IP projects. - The studio has faced financial challenges with drama-focused films, losing significant money on movies like “Beau Is Afraid,” prompting a re-evaluation of their heavy focus on auteur-driven films. - A24's branding and distinct identity in the film industry is robust, demonstrated by merchandise sales, a strong online presence, and their sweep of all six major categories at the Academy Awards. - Despite the impressive accolades and a $2.5 billion valuation, the commercial viability of A24's strategy has been questioned, as their more esoteric offerings have been financially risky and not always profitable. - As A24 adapts its strategy, a challenge will be retaining top-tier filmmakers who start their careers with A24 but often move to larger studios for subsequent projects. [Keep Reading]( 4. [Insuring Tom Cruise: Computing Cost of DIY Stunts Is a Hollywood Mission Impossible]( By Diane Haithman | Source: [WrapPRO]( - Tom Cruise's insistence on performing his own high-risk stunts, notably for the “Mission: Impossible” series, significantly raises the insurance costs for the films he's involved in, introducing a unique "Cruise Factor" to film production's risk assessment. - Production Package insurance typically ranges from 1% to 2.5% of a film's budget, meaning the insurance costs for “Mission: Impossible — Dead Reckoning Part One” with a budget of $291 million would fall between $2.9 million and $4.4 million. - In instances where standard Production Package insurance is insufficient, additional policies are acquired; these may cover stunts, hurricanes, piloting planes, and more, and can be substantially more expensive. - Actors like Cruise, who are deemed "essential elements" for a film, can increase insurance costs, as the film's delivery may rely heavily on their involvement and well-being throughout production. - Despite the financial implications of insuring Tom Cruise's stunts, his value and the promotional aspect of his daredevil antics often outweigh the costs, indicating that the industry sees a high return on investment for such risks. [Keep Reading]( 5. [Why NBCUniversal Shelled Out $400 Million for an ‘Exorcist’ Trilogy]( By Scott Mendelson | Source: [WrapPRO]( - Universal and Blumhouse's "The Exorcist: Believer" opened with a domestic box office of $26.4 million against its $30 million budget, facing challenges from negative reviews and a lukewarm CinemaScore. - In 2021, NBCUniversal invested $400 million for the rights to the "Exorcist" IP, encompassing production budgets for three movies, IP utilization across platforms, and inclusion in theme parks and experiences like Halloween Horror Nights. - The high investment in the "Exorcist" IP was a strategic move by NBCUniversal to show Wall Street its commitment to streaming, echoing similar moves by other studios to bolster their streaming platforms. - Despite the subdued performance of "Exorcist: Believer", Universal's other successes, like "The Super Mario Bros. Movie" and "Oppenheimer", give them financial cushioning, and their commitment to Blumhouse Productions indicates a priority on maintaining strong filmmaker relations. - The shifting priorities from content volume to profitability in streaming, coupled with changing perceptions of value in IPs, highlight the evolving challenges studios face when balancing immediate box office returns with long-term franchise potential. [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](