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Mark Jennings, co-editor of online news platform Newsroom, and former head of News at TV3, has penned an article on Discovery’s plans for TV3.

As Jennings writes, after Discovery’s merger with WarnerMedia., TV3 is now part of the second largest media business in the world after Disney. That in itself is a serious game changer for New Zealand.

TV3 has had an up and down history, moving from private ownership into the Canadian-owned hands of media conglomerate Canwest, before shifting to private equity ownership with Ironbridge Capital and then Oaktree Capital Management. It’s financial fortunes also swung about, going from high profitability before plunging twice into receivership.

TVNZ and SKY in more recent times have kept TV3 impoverished but no longer.

Already the owner of NZ’s Choice TV and HGTV and with six of its own channels on the SKY service, Discovery has, as Jennings points out, brought its might to bear on acquisitions by driving down the prices it pays for content for TV3. With staff cutbacks and other efficiencies, AUNZ GM for Discovery Glen Kyne told Jennings that the channel will be looking to more domestic shows as it competes with TVNZ and Prime in the domestic free-to-air market for viewers.

But what kinds of shows are they after? Kyne didn’t exactly reveal what they are looking for.

In April Juliet Peterson, former GM TVNZ Digital Content, was appointed as Senior Director, Programming at Three, while Australian Darren Chau was appointed Senior Director, Production. Chau has been in New Zealand recently having meetings with some New Zealand producers. Undoubtedly, others have been banging on Juliet’s door. They are certainly looking for ideas.

With its merger with WarnerMedia, Discovery has moved from reality and factual into scripted film and TV as well, with an annual US$20 billion commissioning chest—bigger than Netflix’s. There has been speculation as to whether or not the new CEO of the combined organisation, David Zaslav, is going to adapt when it comes to scripted. This could well play out in TV3’s commissioning stance.

Supposedly, Three is looking for NZ content that can travel internationally as well. It will be interesting to see, though, whether or not the network will continue to rely primarily on NZ On Air and NZ Screen Production Grant funding to get content made in New Zealand. Hopefully, they’ll ante up more than low license fees and become equity investors in NZ shows that could go on one or more of the international distribution channels the newly-branded Warner Bros. Discovery conglomerate owns.

Will it be new beginnings for NZ’s free-to-air market or just more of the same? Watch this space.

 

Tui Ruwhiu
Executive Director

 

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Go back fifteen years and it was pretty easy to figure out what success was for screen content. For the small screen it was the Nielsen ratings. For the big screen it was the box office. The show that knocked it out of the ratings park or the film that pulled significant box office clearly indicated it had found a lot of eyeballs. These measures only account though in essence for popularity.

What about the Māori news or information programme on a Sunday morning that Māori loved? Or the arthouse feature that had its world premiere at the A-list festival in Berlin and then did well at the A and B-list festival circuit but only did $250k at the NZ box office. This content reached its intended audiences, but they were niche not broad.

We all recognised this, though. Figure out your audience, broad or niche, and target your content at them. Even for niche audiences, you could still learn whether or not you were successful.

Nowadays, however, in a fragmented market, it’s not so easy to identify what success really is.

A series intended for Free-to-Air that doesn’t rate could find a much bigger audience when it’s moved to On-Demand. A film that does average box office in New Zealand could end up selling or being licensed to a global streamer and potentially be seen by millions more people than was ever thought possible.

The old indicators still work, but it’s simplistic to use them as the only measures of success, especially when popularity is the only yardstick being championed.

The digital world of content distribution has changed the paradigm and complicated how to measure real success, especially when those who control the means of distribution. Netflix, for example, rarely reveal what the very accurate data they alone have access to indicates about audience specifics.

To define a new measurement for screen content success, New Zealand company Parrot Analytics developed a 360 measurement system to take into account multiple points of digital activity around the world. This system is used by, amongst others, TVNZ, CBS, Disney, Sky, and WarnerMedia. Without the data from the content platforms available, this would seem a very valuable service. Perhaps something NZ On Air might want to consider to support their funding decisions if they don’t already utilise it.

But film sits in a very difficult position amongst this digital measurement system. The shared theatrical experience is considered first and foremost for film, unless you are making a telefeature. Filmmakers want their films to go on the big screen before they find their way to the small. Look at the ructions Warner Bros. created when they decided to send their entire 2021 slate straight to HBO Max at the same time as the theatrical release.

Even with the NZFC playing in the series drama space, NZ film is very much its raison d’etre. But the audience for New Zealand film just isn’t there like it used to be. The writing was on the wall before COVID arrived.

NZ film has had a tropical vacation in theatres while Hollywood has been on hold due to COVID, but winter is coming with the onslaught of backed up blockbusters about to hit us.

Amongst all the other changes needed at NZFC right now, defining success for NZ film is another thing that needs to go on the agenda. A paradigm shift in thinking is required because we can’t rely solely on box office numbers any more. Even more so because film is both art and business. There has to be room for both.

 

Tui Ruwhiu
Executive Director

DEGNZ

DEGNZ will be providing a written submission to the Screen Sector Strategy NZ 2020 – 2030. We want to hear your thoughts!

DEGNZ has formulated 15 questions to help stimulate your thinking about the future of the New Zealand screen industry. You can answer as many or as few questions as you want. All responses that we receive by Monday 14 October will go into shaping the Guild’s submission.

Download Questionnaire

Please email your answers to us at admin@degnz.co.nz with ‘Questionnaire’ in the subject line.

The Screen Sector Strategy NZ has been engaging with the industry by holding hui around the country. A second Auckland hui has been announced. If you couldn’t make it to the first, here’s your chance to participate.

Monday 21 October, 12:30 – 3:30pm   Hatchbox @ GridAKL, Lvl 4, 12 Madden St, Wynyard Quarter, Auckland

It is a critical time for the New Zealand screen industry and we want to encourage everyone to have a say, so please make the most of the opportunity.

Ngā mihi,

Directors & Editors Guild of NZ

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When Bob Iger of Disney speaks about the future of film, it’s worth listening.

Why?

Because amongst the hundreds of companies that sit under the Disney umbrella are 20th Century Fox, Lucas Film, Marvel, and Pixar. Brands number in the thousands and include through whole or partial ownership indie darling Fox Searchlight, streamer Hulu, and networks ABC, ESPN, FX, National Geographic and A & E.

Of course Disney doesn’t own everything. There are other conglomerates out there, the likes of Amazon, Apple, Comcast, and TimeWarner who are shaping the screen content world we are in now. But Iger demands everyone’s attention.

So this month at Disney’s third quarter earnings announcement when Iger essentially declared that big movies belong in theatres, and everything else will go to its streamers Hulu and the soon-to-launch-globally Disney+, everyone sat up.

Reporting on this, Journalists Dana Harris and Chris Lindahl in Indiewire wrote that “The very, very top films with awards potential will see generous theatrical offers and bidding wars that price out all but the deepest pockets. The highest-quality films with no clear awards play will also see strong offers and bidding wars, but from streamers, and considerably less generous offers from independent theatrical distributors. For everyone else, it looks like a struggle — although they could also benefit from the streamers’ ongoing arms race to acquire the content mass necessary to achieve market dominance.”

So where does that leave us in New Zealand with our 10 or so narrative and documentary features a year? Blissfully unaware some say.

A recent article in The Hollywood Reporter gives some indication that even the top names in film can see the writing on the wall. Directors including Martin Scorsese and Christopher Nolan amongst others were behind the Ultra High Definition Alliance’s announced introduction of a “Filmmaker Mode” TV setting. Director Ryan Coogler essentially admitted the fate of film by saying, “I care deeply about how cinema is experienced at home because that’s where it lives the longest. That’s where cinema is watched and re-watched and experienced by families. By allowing the artists in the tent to help consult and give feedback to the electronics companies on Filmmaker Mode, we can collectively help make the consumer’s experience even more like it is in the cinema.”

Of course the name directors will still get their films into theatres—witness the Netflix launch of Scorsese’s The Irishman, Alfonso Cuaron’s Roma, and Amazon’s commitment to theatrical release for the auteur directors it backs. But for the rest of us? We might have to get used to premieres in Filmmaker Mode unless you can get your films into festivals.

Once streamers Netflix, Disney+, Apple TV+, Amazon Prime and WarnerMedia are in full swing here, perhaps NZFC might even relax its demand that you have to have NZ theatrical release to get production funding.

 

Tui Ruwhiu
Executive Director

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The Screen Sector Strategy has announced the dates of its intended hui in 3 locales to gather industry input into a strategy document for the New Zealand Screen Industry. This will be taken to Government in the first half of 2020.

This is an important opportunity for every individual to give their ten cents worth on how they would like to see the direction of the screen industry go.

The DEGNZ board has put together a list of questions for members to help stimulate your ideas. You can find the Guild questionnaire available here to download. Please do send your responses back to us at admin@degnz.co.nz with ‘Questionnaire’ in the subject line.

Below are some recent developments that could contribute to your thinking.

The Spinoff reported in an article on Saturday that for the foreseeable future, TVNZ will not report a dividend to government—essentially, TVNZ’s profitability is way down and is likely to remain so. The impact of Google and Facebook on onscreen advertising revenues is a major factor in this, as well as the advent of Subscription Video on Demand (SVOD) services such as Netflix and the fragmentation of the media market.

In the same article, The Spinoff reported an unprecedented call-out by NZ On Air to all the major news providers to attend a meeting to discuss the long term sustainability of journalism.

Across the ditch in Australia, the Australian Competition and Consumer Commission’s Final Report into Digital Platforms addresses this topic amongst others. Key findings include:

  • The availability of a wide range of high-quality news and journalism provides significant benefits to Australian society and is important for the healthy functioning of democracy.
  • News and journalism risk under-provision for a number of reasons, including the general inability of commercial news media businesses to capture the broader social benefits of journalism.
  • Media businesses, particularly traditional print (now print/online) publishers, have experienced a significant fall in advertising revenue as advertisers follow audiences who have migrated online to access news and other content. This has coincided with strong growth in online advertising, which now accounts for half of all advertising expenditure. Google and Facebook together account for nearly two-thirds of online advertising expenditure.

These aren’t earth-shattering revelations, but clearly highlight the fundamentals of what we all are wrestling with and that are driving TVNZ, Mediaworks, Fairfax, and NZME amongst others to the wall.

The Australians have also called for a levy on streamers to fund local content, the need to maintain broadcast TV quotas, and an end to cuts for screen funding bodies and public broadcasters as previously written about in the Guild blog here.

Funding cuts have impacted heavily on Screen Australia and the Australian Broadcasting Corporation. In New Zealand in comparison, our funding bodies (NZFC, NZ On Air) have had relatively static funding for years, with more and more calls upon it.

As many of you will now be aware, there is international production work to be shot in New Zealand coming out of our ears. We are already seeing a shortage of experienced personnel and crew rates and other production costs are rising while New Zealand budgets stay the same. The question of how local production can survive and thrive in the face of the onslaught of offshore work arriving is vexing a number of us.

We are at a crucial time for both the local and international screen industries. There are seismic shifts still to come as Disney, WarnerMedia, Apple and other streaming services come online and continue to shake broadcast and theatrical to their foundations.

The Screen Sector Strategy work now underway needs to be completed quickly and effectively if we are to have a sustainable industry in New Zealand that benefits from international production and contributes to the development of local screen content and Kiwi screen IP.

Please share your thoughts on where to from here with us at the Guild, at the Screen Sector Strategy hui and with submissions, so that a well thought out strategy is distilled that will work for us all.

Tui Ruwhiu
Executive Director