WEBVTT 1 00:00:00.160 --> 00:00:04.559 Disney has an interesting money making scheme. Well you are not. 2 00:00:04.559 --> 00:00:08.119 Keeping the family means nobody. 3 00:00:07.799 --> 00:00:11.640 Gets They just produced movies that everybody wants to see. 4 00:00:11.720 --> 00:00:15.400 Although this Lelo and Stitch movie came out, my kids 5 00:00:15.800 --> 00:00:18.480 just kind of missed it. My daughter was born in 6 00:00:18.480 --> 00:00:21.879 two thousand and two, so this kind of predated her, 7 00:00:21.960 --> 00:00:24.440 and then my son had no interest in watching. I'm 8 00:00:24.480 --> 00:00:26.800 sure they've seen it, but it was not one that 9 00:00:26.920 --> 00:00:31.960 was on heavy rotation at my house. And honestly, it 10 00:00:32.079 --> 00:00:34.280 didn't do great in two thousand and two when it 11 00:00:34.320 --> 00:00:37.799 first came out. It wasn't really the it wasn't really 12 00:00:37.840 --> 00:00:41.799 the kind of Disney mold of a movie. One of 13 00:00:41.840 --> 00:00:44.799 the movie posters they actually put out for Lelo and 14 00:00:44.840 --> 00:00:50.479 Stitch was other classic Disney characters, Pinocchio, Bell, Jasmine, all 15 00:00:50.759 --> 00:00:56.640 recoiling from the look of Stitch, this alien or I 16 00:00:56.679 --> 00:00:59.479 don't know, rabbit, that God was something, whatever it is, 17 00:01:00.200 --> 00:01:03.520 they were recoiling from it in horror. Ticket sales not great. 18 00:01:03.600 --> 00:01:05.959 They did a couple of directive video sequels. There was 19 00:01:06.000 --> 00:01:09.359 a cartoon in the two thousands. There was a Disney 20 00:01:09.359 --> 00:01:11.719 World ride for Leilo and Stitch in two thousand and four, 21 00:01:11.760 --> 00:01:14.239 but it closed down. There was a lot of I mean, 22 00:01:14.319 --> 00:01:17.400 they sold some stuff, but it wasn't their biggest by 23 00:01:17.480 --> 00:01:22.000 a far, wasn't their biggest franchise. So they make a 24 00:01:22.079 --> 00:01:26.239 live action Lelo and Stitch that's going to be released. 25 00:01:26.280 --> 00:01:27.920 I mean it is released now, but that would have 26 00:01:27.959 --> 00:01:31.719 been twenty three years later and they weren't quite sure 27 00:01:31.799 --> 00:01:34.159 what to do with it. Necessarily, they made it for 28 00:01:34.200 --> 00:01:37.480 one hundred million dollars. It was originally planned to go 29 00:01:37.560 --> 00:01:41.799 straight to Disney Plus, but after just ten days in 30 00:01:41.840 --> 00:01:47.439 the theaters, it brought in six hundred and ten million dollars. 31 00:01:48.000 --> 00:01:51.879 It cost about seventy five million to market. It's probably 32 00:01:51.920 --> 00:01:54.079 going to come in when it's all said and done, 33 00:01:54.400 --> 00:01:56.439 somewhere around a billion dollars. 34 00:01:56.480 --> 00:01:56.799 They say. 35 00:01:56.840 --> 00:01:59.560 The biggest factor in that is going to be how 36 00:01:59.560 --> 00:02:03.359 it does the Japanese market. So Disney is going to 37 00:02:03.439 --> 00:02:07.680 make about three hundred million dollars or more or more 38 00:02:08.000 --> 00:02:15.680 profit just from the box office. That validates this u 39 00:02:15.719 --> 00:02:18.360 turn that they took a couple of years ago. Now 40 00:02:18.400 --> 00:02:21.000 Bob Eiger comes out of retirement, he goes back to 41 00:02:21.039 --> 00:02:24.560 the Helm of Disney. He cuts back on the originals 42 00:02:24.560 --> 00:02:30.039 that they were putting straight to streaming and reprioritizes releasing 43 00:02:30.159 --> 00:02:34.240 straight to the theater. So if you remember last well, 44 00:02:34.319 --> 00:02:38.879 last year in November, Mwana II was originally going to 45 00:02:38.879 --> 00:02:41.520 be a TV series. They were originally going to just 46 00:02:41.560 --> 00:02:44.719 put it straight to streaming as a series, but that 47 00:02:44.840 --> 00:02:48.840 brings in, oh, I don't know, one point one billion 48 00:02:49.159 --> 00:02:53.199 dollars in theaters. A co chair of Disney Entertainment said, 49 00:02:53.599 --> 00:02:58.599 going theatrical, getting that footprint across the entire world lifts everything. 50 00:02:58.680 --> 00:03:01.960 It lifts streaming, it lifts consumer products, it lifts the 51 00:03:01.960 --> 00:03:05.280 theme parks. It's harder to do that when you start 52 00:03:05.520 --> 00:03:09.159 with just streaming, when you start on a service. So 53 00:03:10.280 --> 00:03:13.759 they figured out nine months ago they finally made this decision, 54 00:03:13.879 --> 00:03:15.120 we're going to put it in theaters. 55 00:03:15.240 --> 00:03:16.800 We're going to put it on Memorial Day. 56 00:03:17.840 --> 00:03:24.319 And they had been promoting this thing, this live action movie, 57 00:03:24.560 --> 00:03:28.280 which boosted all of the Leelo and Stitch merchandise, I 58 00:03:28.280 --> 00:03:33.199 mean tenfold from five years before that, because there were 59 00:03:33.360 --> 00:03:38.439 people in their what mid twenties, late twenties, early thirties 60 00:03:38.599 --> 00:03:41.479 who did remember this movie when it was animated and 61 00:03:41.599 --> 00:03:44.159 did want to bring their kids to it. They were 62 00:03:44.199 --> 00:03:46.520 nostalgic about it, even though it may not have been 63 00:03:46.560 --> 00:03:49.639 the greatest box office success that Disney had. These people 64 00:03:49.719 --> 00:03:53.360 love that movie. Here's the problem. Then they were going 65 00:03:53.400 --> 00:03:56.639 to go up against Mission Impossible, the final Reckoning, and 66 00:03:56.840 --> 00:03:59.599 Disney was like, oh, great, of all the things we 67 00:03:59.639 --> 00:04:02.439 don't want to go up against, it's Tom Cruise and 68 00:04:02.479 --> 00:04:05.560 the end of the Mission Impossible series. And there was 69 00:04:05.759 --> 00:04:07.639 just a there were a couple of people around the 70 00:04:07.639 --> 00:04:09.919 board table at Disney who said, no, no, I think 71 00:04:09.919 --> 00:04:13.080 we're okay. I think it's counterprogramming. I think we're gonna 72 00:04:13.080 --> 00:04:16.120 do fine. And in the end, Memorial Day wasn't even close. 73 00:04:16.480 --> 00:04:18.759 Leilo and Stitch took in one hundred and eighty three 74 00:04:18.920 --> 00:04:23.560 million over the holiday weekend, more than twice what Mission 75 00:04:23.560 --> 00:04:29.160 Impossible brought in. Oh and Mission Impossible exponentially more expensive 76 00:04:29.160 --> 00:04:33.040 to make. Disney did everything right on this. They made 77 00:04:33.079 --> 00:04:36.560 a movie that people love, or I should say remade. 78 00:04:36.839 --> 00:04:38.839 They made it for the right price. They picked a 79 00:04:38.879 --> 00:04:42.759 release date, the marketing, the publicity, the social campaigns, everything 80 00:04:42.839 --> 00:04:45.560 fall and fell into place for Disney in this case. 81 00:04:45.920 --> 00:04:48.800 But that doesn't mean that all of these big production 82 00:04:48.920 --> 00:04:54.600 houses are going to get back to strictly theatrical releases. 83 00:04:54.800 --> 00:04:59.120 I have one example coming up actually later this year. 84 00:04:59.639 --> 00:05:02.759 That as one studio in kind of a conundrum. They 85 00:05:02.759 --> 00:05:05.160 still have time to make a decision about this. But 86 00:05:05.279 --> 00:05:08.000 we'll talk about that other big release that's coming out 87 00:05:08.240 --> 00:05:13.480 that might be a theatrical release, but definitely will be 88 00:05:13.560 --> 00:05:14.240 on the streamer. 89 00:05:14.279 --> 00:05:15.920 We'll tell you which one and what movie it is. 90 00:05:16.079 --> 00:05:19.279 We've been talking about movie studios and there are decisions 91 00:05:19.279 --> 00:05:22.600 about when to stream a movie versus when to release 92 00:05:22.639 --> 00:05:27.720 it theatrically. The traditional movie theaters think Paramount or Warner 93 00:05:27.720 --> 00:05:30.000 Brothers or Disney or something like that, and then the 94 00:05:30.079 --> 00:05:34.720 other ones like Amazon, Apple, Netflix obviously, and what you 95 00:05:34.800 --> 00:05:37.720 would prefer. Would you want to see a movie at 96 00:05:37.759 --> 00:05:39.199 home or would you want to see it in a 97 00:05:39.199 --> 00:05:39.800 big movie theater. 98 00:05:39.879 --> 00:05:45.279 Good morning Gary, without Shannon today. This is Vick in Glendale. 99 00:05:45.680 --> 00:05:49.439 And in regards to what movies I like to see 100 00:05:49.480 --> 00:05:53.639 in the theater, I enjoy going to classic theater to 101 00:05:54.920 --> 00:05:59.680 view classic movies like Robin Hood or Frankenstein or whatever. 102 00:05:59.800 --> 00:06:03.759 My be reliable modern movies I prefer. 103 00:06:03.560 --> 00:06:07.480 To stream interesting. I know the technology is different, Hey. 104 00:06:07.240 --> 00:06:10.160 Gary, Me personally, I like to go to the movie theater. 105 00:06:10.279 --> 00:06:12.920 It's just the whole experience. I take my kids to movies. 106 00:06:12.959 --> 00:06:13.879 I'm just a movie buff. 107 00:06:13.920 --> 00:06:18.439 I love movies, and there's certain movies like like the 108 00:06:18.439 --> 00:06:20.240 twenty eight years Later, that I just want to see 109 00:06:20.279 --> 00:06:22.399 in theaters. Like if I can catch certain movies in theaters, 110 00:06:22.399 --> 00:06:24.519 I'd rather see them there. It's just like the whole 111 00:06:24.519 --> 00:06:28.399 thing about just being out and getting popcorn and doing 112 00:06:28.399 --> 00:06:31.240 everything at a theater. Just this is not the same 113 00:06:31.240 --> 00:06:32.120 at your house, you know. 114 00:06:32.800 --> 00:06:33.439 That's what I prefer. 115 00:06:33.800 --> 00:06:36.399 Yeah, I agree, there is a romanticized version of it. 116 00:06:36.399 --> 00:06:39.199 It brings back memories of movies you saw in the 117 00:06:39.199 --> 00:06:44.439 theater as a kid or whatever. So it's funny that 118 00:06:44.439 --> 00:06:48.040 that guy mentioned Frankenstein because Netflix is out with its 119 00:06:48.079 --> 00:06:51.959 first trailer for the Guillelmo. It's hard to say his name, 120 00:06:52.240 --> 00:06:58.560 Guillermo del Toro's version of Frankenstein. I didn't realize that 121 00:06:58.959 --> 00:07:03.879 since Mary Shelley wrote Frankenstein, there have been two hundred 122 00:07:04.279 --> 00:07:08.639 film versions of Frankenstein or some version of Frankenstein, two 123 00:07:08.839 --> 00:07:14.040 hundred of them almost, And the one that is produced 124 00:07:14.040 --> 00:07:19.879 by Netflix and Guielmro del Toro looks like a full 125 00:07:19.920 --> 00:07:25.279 fledged old fashioned blockbuster of a movie. It is massive, 126 00:07:26.040 --> 00:07:32.800 and when Netflix makes a movie like this, they could 127 00:07:32.839 --> 00:07:36.800 be criticized for not releasing it in theaters. There's actually 128 00:07:36.800 --> 00:07:39.800 a Hollywood reporter refers to that as the roadhouse paradox, 129 00:07:39.839 --> 00:07:44.199 which means released movies that are perfectly watchable but mediocre. 130 00:07:45.720 --> 00:07:50.399 So on Sunday, Netflix releases the first trailer for Del 131 00:07:50.439 --> 00:07:53.199 Toro's longtime passion project of Frankenstein. 132 00:07:53.879 --> 00:07:54.920 And it's pretty amazing. 133 00:07:54.959 --> 00:08:00.519 You've got Oscar Isaac as Doctor Frankenstein, Jacob Elordi is Monster, 134 00:08:01.000 --> 00:08:07.399 Mia Goth as Victor's fiance, all of this incredible Arctic imagery, 135 00:08:07.439 --> 00:08:09.519 because there's a whole North Pole section that's in the 136 00:08:09.519 --> 00:08:13.639 book that doesn't appear in many movies, Victorian imagery as well. 137 00:08:14.079 --> 00:08:16.800 And there are already people who. 138 00:08:16.639 --> 00:08:20.279 Are demanding if you can do that that Netflix released 139 00:08:20.279 --> 00:08:24.000 this thing in the theaters November ish, probably a Thanksgiving 140 00:08:24.040 --> 00:08:26.920 release is what they're looking at. And here you got 141 00:08:26.920 --> 00:08:30.439 to think of the again, the math that goes into this. 142 00:08:30.600 --> 00:08:36.799 I just explained how when Malana II and Leelo and 143 00:08:36.840 --> 00:08:40.879 Stitch go to movie theaters, Disney makes hundreds of millions 144 00:08:40.919 --> 00:08:45.159 of dollars more than they would have arguably, and you 145 00:08:45.320 --> 00:08:49.440 can then turn that into merchandise and theme park rides 146 00:08:49.519 --> 00:08:52.840 for years for years. This is a little different because 147 00:08:52.840 --> 00:08:55.559 it's a story that everybody knows. Granted, Lelo and Stitch 148 00:08:55.600 --> 00:09:00.200 was a story everybody knew, but this is Frankenstein. Well, 149 00:09:00.200 --> 00:09:05.559 almost two hundred film versions of Frankenstein in some capacity 150 00:09:05.919 --> 00:09:09.440 have already been out there, so this one is arguably 151 00:09:09.840 --> 00:09:13.480 the most expensive could be and it is going to 152 00:09:13.519 --> 00:09:17.519 be dramatic and fantastic. But is it enough to get 153 00:09:17.600 --> 00:09:24.080 a film theater release. A couple of comments on YouTube 154 00:09:24.080 --> 00:09:26.440 that I was looking through when I saw the trailer 155 00:09:26.519 --> 00:09:29.799 last night, Guillermo del Toro is too good for Netflix. 156 00:09:29.840 --> 00:09:31.200 This needs a theater release. 157 00:09:31.960 --> 00:09:33.600 Another one says, I think we can all agree that 158 00:09:33.639 --> 00:09:38.679 this should be released in released in theaters. Guillammere del 159 00:09:38.679 --> 00:09:41.600 Toro is for theaters, not for Netflix. All that man 160 00:09:41.639 --> 00:09:44.759 makes is art. Now listen. He is a Best Picture 161 00:09:44.759 --> 00:09:48.000 Oscar winner. The Shape of Water in twenty seventeen was 162 00:09:48.039 --> 00:09:52.000 a really incredible movie, and he has been on record 163 00:09:52.080 --> 00:09:54.960 saying that this Frankenstein story is something that he's wanted 164 00:09:55.000 --> 00:09:59.799 to make for twenty years, and it includes things like 165 00:09:59.799 --> 00:10:02.080 the North Pole sequence that again that exists in the 166 00:10:02.080 --> 00:10:04.120 book but does not exist in many of the film 167 00:10:04.559 --> 00:10:09.240 versions that we would see whether it's Peter Boyle and 168 00:10:09.320 --> 00:10:12.440 Young Frankenstein, whatever it is. But he said, this is 169 00:10:12.559 --> 00:10:15.399 the pinnacle of everything. Again, this is del Toro speaking. 170 00:10:15.919 --> 00:10:17.399 Part of me wants to do a version of it, 171 00:10:17.480 --> 00:10:19.960 part of me has twenty four of twenty five years 172 00:10:20.039 --> 00:10:22.559 chickened out of making it. And he says, I dream 173 00:10:22.600 --> 00:10:25.519 I can make the greatest Frankenstein ever. But then if 174 00:10:25.559 --> 00:10:28.080 you make it, you've made it. Whether you did it 175 00:10:28.120 --> 00:10:32.480 great or not, it's done. You can't dream about it anymore. So, 176 00:10:32.840 --> 00:10:36.840 to be technical, Netflix is going to release there's almost 177 00:10:36.840 --> 00:10:39.679 an absolute guarantee that they're going to release it theatrically 178 00:10:40.200 --> 00:10:44.039 somewhere for some amount of time because it has to 179 00:10:44.080 --> 00:10:47.559 be released in theaters for it to qualify for Academy 180 00:10:47.600 --> 00:10:51.080 Awards consideration and Screen Actors Guild and things like that. 181 00:10:51.279 --> 00:10:53.600 So it does have to be released in theaters for 182 00:10:53.639 --> 00:10:56.639 a time. But is that their main plan? Are they 183 00:10:56.679 --> 00:11:02.039 looking for a multi hundred million dollar film in Frankenstein 184 00:11:02.720 --> 00:11:04.919 or are they just going to use it to drive 185 00:11:05.000 --> 00:11:07.559 people to their service like they have in the past 186 00:11:07.600 --> 00:11:10.759 with other movies. We talk about it because that is 187 00:11:10.799 --> 00:11:14.080 the business of this town, specifically here in Burbank. But 188 00:11:14.320 --> 00:11:18.840 obviously in production studios across this city and across the 189 00:11:18.879 --> 00:11:22.600 county is where the vast majority of TV and movies 190 00:11:22.679 --> 00:11:27.000 are created in the world. And we've repeatedly talked about 191 00:11:27.480 --> 00:11:30.960 the industry itself struggling. One of the indicators of that 192 00:11:31.720 --> 00:11:38.759 is studio space sound stage for film and TV production 193 00:11:39.120 --> 00:11:41.600 and whether or not they're busy. And I ran into 194 00:11:41.600 --> 00:11:44.759 this article on vankler dot com a n k L E. 195 00:11:44.879 --> 00:11:47.720 R Ankler dot com by Elain Low and it says 196 00:11:47.799 --> 00:11:52.360 that the current state of our sound stages in LA 197 00:11:53.120 --> 00:11:56.519 kind of remind us of the failure of retail malls 198 00:11:56.559 --> 00:11:59.279 throughout the country over the last few decades. And Elaine 199 00:11:59.360 --> 00:12:01.399 is joining us now writer and host for The Anchlor, 200 00:12:01.480 --> 00:12:04.720 one of the top business publications on Substack, taking time 201 00:12:04.759 --> 00:12:08.759 for us this morning. Elaine, First, thanks for thanks for 202 00:12:08.919 --> 00:12:10.960 carving out some time in your day for us. 203 00:12:11.559 --> 00:12:13.440 Thanks so much for having me really appreciate it. 204 00:12:13.679 --> 00:12:18.000 Sure I read with great interest this piece on the 205 00:12:18.559 --> 00:12:21.039 state of where we are in terms of sound stages. 206 00:12:21.080 --> 00:12:22.480 So why don't you just kind of put it in 207 00:12:22.559 --> 00:12:26.200 a nutshell for us In terms of the square footage 208 00:12:26.240 --> 00:12:29.600 that exists for production in this town, it's not being 209 00:12:29.679 --> 00:12:30.559 utilized right now. 210 00:12:32.120 --> 00:12:35.799 No, there's something like two point eight million square feet 211 00:12:35.879 --> 00:12:40.840 of studio space. You have the largest operators, which are 212 00:12:41.200 --> 00:12:43.559 you know, when you count all of their stages together, 213 00:12:43.639 --> 00:12:46.600 you have Warner Brothers which is thirty six stages, Universal 214 00:12:46.679 --> 00:12:50.840 which has thirty, Sony has eighteen, Paramount has twenty nine. 215 00:12:51.159 --> 00:12:55.399 You know, you look at Radford Studio Center, twentieth Century Studios. 216 00:12:55.000 --> 00:12:56.559 You know known as the Fox Lot. 217 00:12:57.639 --> 00:13:01.200 There's a lot of sound stage space in LA And 218 00:13:01.240 --> 00:13:03.559 you know, when we talk about soundstages, we're talking about 219 00:13:03.559 --> 00:13:06.960 things like Gray's Anatomy, things that are you know, inside 220 00:13:07.080 --> 00:13:10.240 when they're in a room, you know, sitcoms, game shows, 221 00:13:10.759 --> 00:13:13.279 not we're not talking about on location like when you 222 00:13:13.320 --> 00:13:17.200 see a shot out on a street or outdoors. But 223 00:13:17.279 --> 00:13:20.360 it is a good barometer for how much production is happening. 224 00:13:20.519 --> 00:13:22.919 And the numbers are pretty stark. 225 00:13:23.360 --> 00:13:24.279 When you look at. 226 00:13:24.120 --> 00:13:29.799 Film LA's figures, and that's the official La County Film Office, 227 00:13:30.320 --> 00:13:33.519 the numbers in twenty sixteen, when things were humming along, 228 00:13:33.919 --> 00:13:38.600 soundstage space was at a high ninety six percent. And 229 00:13:38.639 --> 00:13:42.600 then obviously that figure dipped during the pandemic when all 230 00:13:42.639 --> 00:13:44.759 of production was halted for some time, but then it 231 00:13:44.759 --> 00:13:49.360 bounce back and around, you know, twenty twenty two or so, 232 00:13:50.480 --> 00:13:53.279 you know, you were looking at at about ninety percent 233 00:13:53.399 --> 00:13:55.840 occupancy again, and that was during the peak of peak TV, 234 00:13:56.039 --> 00:13:58.799 right when there were six hundred scripted TV shows on 235 00:13:58.919 --> 00:14:02.120 the air. But that number has come back down again 236 00:14:02.399 --> 00:14:06.360 after the WGA and SAG strikes of twenty twenty three, 237 00:14:06.639 --> 00:14:10.440 amid a broader industry wide contraction where they've all just 238 00:14:10.480 --> 00:14:12.639 been pulling back on their budgets and the number of 239 00:14:12.679 --> 00:14:15.919 TV series that they're producing and the complements of those 240 00:14:15.960 --> 00:14:21.919 factors has brought soundstage occupancy down to sixty nine percent 241 00:14:22.000 --> 00:14:23.960 in twenty twenty three, which was a strike year. But 242 00:14:24.039 --> 00:14:27.360 the more stark number is that it's actually down to 243 00:14:27.399 --> 00:14:30.240 sixty three percent in twenty twenty four, a year that 244 00:14:30.399 --> 00:14:32.480 wasn't impacted by labor stoppages. 245 00:14:32.600 --> 00:14:34.399 And that's what's remarkable. 246 00:14:34.879 --> 00:14:37.200 That part of it, the strike part of it, I 247 00:14:37.200 --> 00:14:40.440 think is what intrigues me because when those were going 248 00:14:40.480 --> 00:14:43.840 on writers strike and the actors strike, they were just 249 00:14:44.000 --> 00:14:47.360 coming back from COVID and all the production that was 250 00:14:47.399 --> 00:14:51.240 shut down, and I had this gut feeling like this 251 00:14:51.279 --> 00:14:53.440 is not the right time to do this, because you're 252 00:14:53.480 --> 00:14:56.759 already dealing with an industry that's been punched in the 253 00:14:56.799 --> 00:14:59.639 face and the guts and then kicked in the crotch. 254 00:15:00.039 --> 00:15:03.440 It was in a bad space at the time. Is 255 00:15:03.480 --> 00:15:07.639 there any blame that can land on the unions for 256 00:15:07.720 --> 00:15:10.039 those for those work stoppages. 257 00:15:11.279 --> 00:15:16.840 From the union's perspective, It's look, streaming has so severely 258 00:15:17.320 --> 00:15:21.120 disrupted the industry, you know, and you kind of look 259 00:15:21.120 --> 00:15:22.840 back to the two thousand and seven two thousand and 260 00:15:22.879 --> 00:15:25.639 eight writers strike when when people refer to streaming as 261 00:15:25.679 --> 00:15:27.360 like new media, and it was kind of like, well, 262 00:15:27.399 --> 00:15:27.600 what do. 263 00:15:27.639 --> 00:15:28.799 We do about this new media? 264 00:15:29.639 --> 00:15:31.960 And over the years, you know, the economics of TV 265 00:15:32.080 --> 00:15:34.960 have really changed so severely, and you know, writers and 266 00:15:35.000 --> 00:15:39.320 performers really felt like they weren't able to, you know, 267 00:15:39.399 --> 00:15:42.360 to reap the gains of you know, the many different 268 00:15:42.399 --> 00:15:45.159 streaming shows that are on you know, massive platforms like 269 00:15:45.240 --> 00:15:48.679 Netflix and Disney Plus and all of that, And so 270 00:15:48.759 --> 00:15:53.240 that was the reasoning behind those strikes. You know, certainly 271 00:15:53.600 --> 00:15:56.159 the town has still been in recovery mode over the 272 00:15:56.240 --> 00:15:58.759 last couple of years, and I think, you know, talking 273 00:15:58.759 --> 00:16:00.440 to people I talked to a lot of age and 274 00:16:00.480 --> 00:16:04.639 producers and showrunners, there was a lot of perhaps misplaced 275 00:16:04.679 --> 00:16:07.360 optimism going into twenty twenty four, coming right out of 276 00:16:07.399 --> 00:16:10.600 the strikes, thinking that things would bounce back, but that 277 00:16:10.679 --> 00:16:13.080 didn't really happen. It really didn't pick up again until 278 00:16:13.080 --> 00:16:16.200 the back half of twenty twenty four because the largest 279 00:16:16.799 --> 00:16:19.440 guild IATSE, which represents you know, something like one hundred 280 00:16:19.480 --> 00:16:22.919 and fifty thousand crew members, was in negotiations in the 281 00:16:22.960 --> 00:16:24.759 top half of the year, and so there was some 282 00:16:24.879 --> 00:16:29.279 apprehension about going back into production when there was potentially 283 00:16:29.279 --> 00:16:32.039 a third strike around the corner. Now that didn't materialize. 284 00:16:32.320 --> 00:16:33.399 They came to an agreement. 285 00:16:34.240 --> 00:16:34.759 This year. 286 00:16:34.840 --> 00:16:37.240 There's been a lot more optimism about the state of 287 00:16:37.440 --> 00:16:41.080 production though, but it's still kind of notable to see 288 00:16:41.200 --> 00:16:43.679 how much sound stage use has moved out of LA 289 00:16:44.120 --> 00:16:46.080 and outside of the strikes. A lot of. 290 00:16:46.000 --> 00:16:47.879 People would point to the tax. 291 00:16:47.639 --> 00:16:51.159 Incentive issue, the fact that there are just more appealing 292 00:16:51.200 --> 00:16:55.559 tax credits and tax incentives outside of California and outside 293 00:16:55.559 --> 00:16:58.039 of the country. You know, it's interesting when you think 294 00:16:58.039 --> 00:17:00.919 about game shows, like you know that low game show 295 00:17:00.960 --> 00:17:03.720 the Floor, which is thought I saw that in Ireland. 296 00:17:03.840 --> 00:17:07.200 If that was that's an amazing the idea of taking 297 00:17:07.279 --> 00:17:10.720 everything that you have here flying it to Ireland. I mean, 298 00:17:10.759 --> 00:17:12.119 I know they use some of the people there, but 299 00:17:12.480 --> 00:17:16.039 still that idea that that's a cheaper move for the 300 00:17:16.079 --> 00:17:18.880 studios than to produce it down the street here in 301 00:17:18.920 --> 00:17:20.799 Burbank or something is mindful. 302 00:17:20.519 --> 00:17:23.599 Right, Yeah. I mean a lot of game shows film 303 00:17:23.680 --> 00:17:26.000 out in Ireland. It's it's wild and I don't think 304 00:17:26.000 --> 00:17:28.640 many people, you know, know that the average American viewer 305 00:17:28.720 --> 00:17:31.039 and they're watching a show like The Floor or something. 306 00:17:30.759 --> 00:17:33.559 Else, well if they maybe if they had Irish accents, 307 00:17:33.599 --> 00:17:36.039 that'd make a big difference. We're talking with Elaine Lowe, 308 00:17:36.160 --> 00:17:38.519 writer for The Ankler. You can find her work at 309 00:17:38.559 --> 00:17:42.200 Theankler dot com a n k l e r and 310 00:17:42.279 --> 00:17:49.039 specifically this story regarding sound stages and stage occupancy down 311 00:17:49.119 --> 00:17:53.200 to sixty three percent in twenty twenty four, down even 312 00:17:53.319 --> 00:17:55.799 from the year that they were the writers and the 313 00:17:55.839 --> 00:17:56.960 actors were on strike. 314 00:17:57.359 --> 00:17:58.559 And I wanted to ask you, Elane. 315 00:17:58.559 --> 00:18:01.119 You mentioned that obviously a lot of production has gone 316 00:18:01.119 --> 00:18:06.440 to places like British, Columbia, Georgia, North Carolina, Tennessee is 317 00:18:06.480 --> 00:18:07.480 now getting into this. 318 00:18:07.480 --> 00:18:08.079 Game as well. 319 00:18:08.119 --> 00:18:13.240 What are they doing right that either California or La 320 00:18:13.319 --> 00:18:15.079 County specifically is doing wrong. 321 00:18:16.640 --> 00:18:19.400 Regardless of who I talk to, it always comes back 322 00:18:19.440 --> 00:18:22.400 to the tax and Senates and the tax credit, and 323 00:18:22.599 --> 00:18:25.960 California lawmakers are looking at potentially, you know, there's a 324 00:18:26.000 --> 00:18:28.319 proposal to more than double that tax credit from three 325 00:18:28.359 --> 00:18:31.200 hundred and thirty million to seven hundred and fifty million 326 00:18:31.319 --> 00:18:34.279 right now, but some people say that doesn't even go 327 00:18:34.480 --> 00:18:38.440 far enough. You know, the way it's structured, you know, 328 00:18:38.480 --> 00:18:42.240 the intricacies of it just aren't as appealing as other 329 00:18:42.319 --> 00:18:46.279 states and other places out of the country. And you know, 330 00:18:46.359 --> 00:18:49.920 it doesn't apply to above the line salaries like you know, actors, 331 00:18:50.000 --> 00:18:51.839 and you know, non scripted you know, we. 332 00:18:51.920 --> 00:18:54.720 Were talking about game shows like The Floor, you. 333 00:18:54.640 --> 00:18:58.480 Know, anything that's a non scripted reality show, game show, documentary. 334 00:18:58.559 --> 00:19:02.160 Those are all not even for the tax incentive right now. 335 00:19:02.200 --> 00:19:04.920 So there's an entire part of the industry, you know, 336 00:19:04.960 --> 00:19:06.559 that would love to be able to be a. 337 00:19:06.519 --> 00:19:07.000 Part of that. 338 00:19:07.119 --> 00:19:10.359 And you know, there's a huge stay in LA production 339 00:19:10.519 --> 00:19:14.640 campaign to try and keep more production local to southern California. 340 00:19:15.279 --> 00:19:17.799 But again, it all just comes back down to that tax. 341 00:19:17.559 --> 00:19:21.599 Conversation outside of AI, which brings with it its own 342 00:19:21.680 --> 00:19:25.519 set of problems for actors and writers, et cetera. Will 343 00:19:25.920 --> 00:19:30.119 will technology make these sound stages obsolete at least the 344 00:19:30.119 --> 00:19:32.519 way we've used them for the last one hundred years. 345 00:19:33.880 --> 00:19:36.319 These are pretty old sound stages, a lot of them, 346 00:19:36.440 --> 00:19:40.359 but a number of them are being outfitted for virtual production, 347 00:19:40.480 --> 00:19:42.559 you know, when you have like a giant led wall 348 00:19:42.759 --> 00:19:45.759 and you can do things more digitally. And you know, 349 00:19:45.960 --> 00:19:50.480 I've talked at some folks who are optimistic about repurposing 350 00:19:50.680 --> 00:19:54.319 sound stages, you know, outside of TV and film use. 351 00:19:54.440 --> 00:19:56.640 You know, they're they're being leased out for like commercial 352 00:19:56.759 --> 00:19:59.839 usage or like magazine cover shoots or live events or 353 00:20:00.000 --> 00:20:02.920 boarding events, you know, but in order to actually keep 354 00:20:02.920 --> 00:20:05.839 production here. I was actually at this AI on the 355 00:20:05.920 --> 00:20:11.559 Lot conference last week talking to the CEO of light 356 00:20:11.640 --> 00:20:14.680 Craft Technologies, and you know, there's somebody that have a background, 357 00:20:14.720 --> 00:20:17.759 they have an engineering emmy, you know, and are working 358 00:20:17.759 --> 00:20:21.759 on AI and virtual production technology, and you know, you 359 00:20:21.759 --> 00:20:23.559 can do a lot with just a green screen. And 360 00:20:23.599 --> 00:20:28.000 I said, well, doesn't this, you know, disincentivize somebody coming 361 00:20:28.000 --> 00:20:31.480 to a traditional sound stage, and you know, they're there's 362 00:20:31.519 --> 00:20:33.279 thee I was telling me, Actually, you know, I really 363 00:20:33.359 --> 00:20:37.079 hope that this actually creates more opportunities. You know, if 364 00:20:37.079 --> 00:20:39.720 you divvy up a traditional sound stage, you know, put 365 00:20:39.799 --> 00:20:42.000 up some green paint or a green screen, and then 366 00:20:42.039 --> 00:20:44.920 maybe you can actually have more occupants in a you know, 367 00:20:45.039 --> 00:20:48.839 traditional large sound stage setting, you know, with that's rigged 368 00:20:48.920 --> 00:20:51.200 up with all the lights and acoustics and everything. 369 00:20:51.799 --> 00:20:51.960 You know. 370 00:20:52.000 --> 00:20:55.119 So people are trying to get creative with alternate usage. 371 00:20:55.559 --> 00:20:58.440 But you know, episodic TV, which is really the lifeblood 372 00:20:58.559 --> 00:21:01.920 of the industry in you know, that's down to twenty 373 00:21:01.960 --> 00:21:05.279 percent soundstage use here, down from thirty percent. 374 00:21:05.559 --> 00:21:06.119 Year of a year. 375 00:21:07.079 --> 00:21:09.279 I'm also curious, I don't know if you saw this 376 00:21:09.359 --> 00:21:15.519 story about actors and producers demanding that their shows be 377 00:21:15.680 --> 00:21:19.079 shot in la Zach Braff has finally signed on to 378 00:21:19.559 --> 00:21:24.559 reprise his role as JD on the Scrubs reboot, and 379 00:21:24.079 --> 00:21:28.519 there was there was a going back and forth about 380 00:21:28.559 --> 00:21:31.519 whether or not they would. When he signed on, he said, 381 00:21:31.519 --> 00:21:34.119 I'll do it only if it's filmed in LA despite 382 00:21:34.119 --> 00:21:37.000 the original plans it to have it moved off to 383 00:21:37.160 --> 00:21:40.759 Vancouver and produce up there. Do you think that's a 384 00:21:40.880 --> 00:21:43.519 trend that we might see as some of these people saying, 385 00:21:43.960 --> 00:21:46.400 some of the actors saying they believe so much in 386 00:21:46.640 --> 00:21:51.880 keeping production in southern California that they make these demands. 387 00:21:52.160 --> 00:21:56.880 We've certainly seen that from high profile showrunners and producers 388 00:21:56.920 --> 00:22:00.039 and on screen talent, but it's a very small a 389 00:22:00.240 --> 00:22:02.640 part of a population that has the leverage to be 390 00:22:02.680 --> 00:22:04.839 able to do that, to be able to say, you know, no, 391 00:22:04.920 --> 00:22:08.480 we'd like to keep all production here, although certainly it's 392 00:22:08.519 --> 00:22:10.319 something that a lot of people would like to be 393 00:22:10.319 --> 00:22:12.599 able to have the power to do, especially again, there's 394 00:22:12.599 --> 00:22:15.599 this big stay in LA movement to try and keep 395 00:22:15.599 --> 00:22:18.480 production here. But again, that conversation keeps coming back to 396 00:22:18.480 --> 00:22:20.440 the tax incentive more than anything else. 397 00:22:20.920 --> 00:22:22.880 I know you've been writing on TV for a long time. 398 00:22:23.920 --> 00:22:26.519 What do you watch? What's your favorite show right now? 399 00:22:27.680 --> 00:22:27.839 Oh? 400 00:22:27.920 --> 00:22:31.519 Gosh, what am I watching? Just finished watching the four 401 00:22:31.559 --> 00:22:35.480