PRO Tip Sheet: 4 Insights From This Week

This week we explored how the industry will find its swagger in 2024, reviewed the 2023 box office highlights, reported on ABC’s plans to build on the “Golden Bachelor” and broke down the intensifying proxy battle at Disney. 4 Insights From WrapPRO Hollywood got back to work in the new year. This week we commented on the industry’s brutal 2023 and how it will find its swagger in 2024 despite challenging headwinds. We also reviewed the 2023 box office totals for the major studios, reported on ABC’s plans to build on the “Golden Bachelor” phenomenon and broke down the intensifying proxy battle at Disney. 1. [WaxWord:]([With Brutal 2023 in the Books, Will Hollywood Find Its Swagger?]( By Waxman | Source: [WrapPRO]( - The entertainment industry is experiencing a significant downturn marked by anemic box office performance, ongoing streaming losses, and widespread job cuts, with uncertainty prevailing over the future. - The tech giants, including Google, Amazon, and Meta, continue to thrive with sky-high profits, further highlighting the industry's shifting dynamics and the challenges faced by traditional studios. - The 2023 labor strikes played a crucial role, leading to historic deals for writers and actors, but the long-term impact on the entertainment ecosystem's profit centers remains uncertain. - Studios, grappling with rising costs and lower margins, are cutting back on production spending, raising prices, and relying on advertising, while the 2024 box office is predicted to generate lower revenue due to a lack of movies in the pipeline. - The advent of artificial intelligence poses a significant risk, with the looming prospect of creative work being reduced, background actors dwindling, and animation work replicated at an accelerated pace, shaping the future path of Hollywood for the next 12 months. [Keep Reading]( 2. [2023 Box Office in Review: A Year Where Filmmakers Flourished and Franchises Failed]( By Jeremy Fuster | Source: [WrapPRO]( - The 2023 box office saw a 23% improvement from the previous year, reaching $9.05 billion, but remains 20% down from 2019, indicating a changing landscape in audience preferences and box office dynamics. - Superhero films, dominant in the 2010s, were absent from the top 3 global box office spots, with movies like “Barbie,” “The Super Mario Bros. Movie,” and “Oppenheimer” taking the lead, signaling a shift in audience interests. - A filmmaker's distinct vision proved crucial in the success of top films, emphasizing the importance of creativity and unique storytelling in capturing audience attention. - Universal showcased resilience in the post-COVID box office, balancing hits like “The Super Mario Bros. Movie” with some misfires, highlighting the studio's ability to adapt to unpredictable market conditions. - Disney faced paradoxical challenges, with strong performances from films like “Guardians of the Galaxy Vol. 3” and “The Little Mermaid,” while also experiencing setbacks with underperforming titles, raising concerns about Marvel's reliability as a box office draw. [Keep Reading]( 3. [ABC Plans to Build on ‘Golden Bachelor’ Momentum With a Focus on ‘People to Root For’]( By Loree Seitz | Source:WrapPRO]( - ABC's “The Golden Bachelor” became a broadcast television juggernaut, drawing both loyal “Bachelor” Nation fans and new audiences with its focus on senior singles, outpacing viewership and ratings of recent seasons of “The Bachelor” and “The Bachelorette.” - The success of “The Golden Bachelor” was attributed to shifting the focus toward senior singles, emphasizing genuine interest in love rather than notoriety, showcasing compelling connections between 72-year-old Gerry Turner and the contestants. - The spin-off's departure from the typical gimmicks and petty fights of “Bachelor” shows resonated with viewers, highlighting empowering friendships among the women and genuine conversations about loss and heartbreak. - The live wedding special for Turner and his fiancée Nist is seen as the “cherry on top” of an amazing season, aligning with ABC's live-event strategy, which has become increasingly important for broadcast television. - Despite the success, ABC is approaching the future of “The Golden Bachelor” cautiously, taking time for thoughtful development, and while the network has teased a new season or a “Golden Bachelorette,” it emphasizes the need for a careful and meticulous approach to maintain the show's high standards. [Keep Reading]( 4. [The Disney-Nelson Peltz Proxy Battle, Explained]( By Lucas Manfredi | Source:WrapPRO]( - Activist investor Nelson Peltz's proxy fight with Disney intensifies as ValueAct Capital and Blackwells Capital join the battle, aiming to make significant changes at the House of Mouse's management and board of directors. - Trian Fund Management, led by Peltz, seeks changes at Disney, including a succession plan for CEO Bob Iger, alignment of compensation with performance, cost-cutting, and reinstating dividends by fiscal year 2025. - Peltz argues that Disney has underperformed its peers, citing lost shareholder value, declining earnings-per-share estimates, and disappointing studio content, placing blame on a board too connected to a long-tenured CEO. - Trian, with a $3 billion stake in Disney, is gaining influence through former Marvel Entertainment chairman Ike Perlmutter's shares, has appointed former Disney CFO Jay Rasulo for board nomination and secured support from Ancora Holdings. - Disney is responding with strategic initiatives, cost-cutting, dividend reinstatement, changes in corporate governance, new board appointments, and by recruiting external expertise, while facing challenges from Blackwells Capital's nominations and ValueAct Capital's involvement. [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](. TheWrap | 2034 Armacost Ave Los Angeles, CA 90025 [Unsubscribe](