TELEVISION PARADIGM SHIFTS

NetFlix, Amazon, Hulu, HBO, CBS, Sling, and Beyond

NETFLIX and the TELEVISION PARADIGM SHIFTS

•1997 Netflix is founded by Reed Hastings and Marc Randolph as a subscriber based nation-wide mail-order VHS/DVD company to compete with BLOCKBUSTER VIDEO’S MONOPOLY.

–Silicon Valley (San Jose/Palo Alto California)

–Reed Hastings says that he founds Netflix partly out of frustration after being fined $40 by Blockbuster for being late in returning “Apollo 13.”

•2002 NETFLIX DVD 700,000 subscribers in the U.S.;

•2005 RAPID GROWTH 3.6 million Netflix subscribers

DVD rental for $4 and an additional $2 for shipping

250,000 discs available for rent

4 DVD’s for one-time monthly fee of $15.95

revenues touched $150 million

2005 shipping nearly 1,000,000 DVD’s by mail every day!

VIDEO STREAMING BEGINS!Major PARADIGM SHIFT for TV & Film

• 2007-2010 NETFLIX STARTS TV/VIDEO STREAMING

oMAJOR BARRIER #1: SLOW INTERNET SPEEDS (Bandwidth)

oBARRIER#2: Viewer Loyalties… to DVDs, CABLE, and BroadcastTV

oBARRIER#3: NETWORK CAPACITY—Too Small

• 2010 NETFLIX starts streaming to Canada (1st International Market);

• 2012—Streaming to UK/ENGLAND and to Mexico and Caribbean

• 2012 AMAZON PRIME — Starts offering streaming video

– Fox starts Hulu (Advertising based) in ~2014

• 2013 NETFLIX Starts creating ORIGINAL SHOWS/CONTENT:

• 2016/17 NETFLIX becomes “available” WORLDWIDE! The FIRST LEGITIMATE GLOBAL TV PROVIDER

“Available” in 190 countries (not China)

Mostly Cities and wealthy urban areas

Tourist Centers and Hotel Districts

• 2017/18 Netflix surpasses Cable subscribers

NETFLIX “Original” SHOWSGlobal AudiencesThe Game Changing Programs1. Stranger Things (2016) 17 Emmys

2. The Crown (2016)

3. Breaking Bad

4. House of Cards

5. Orange is the New Black

6. 13 Reasons Why

7. Narcos

Global/INTERNATIONAL VIEWERSThe HUNT for New International Viewers!

MAJOR New GLOBAL Markets:

• 2010 NETFLIX starts streaming to Canada (1st

International Market);

• 2012—Streaming to UK/ENGLAND and to Mexico and Caribbean.

• 2012 AMAZON PRIME — Starts offering streaming video

– Fox starts Hulu (Advertising based) in ~2014

•2013 The GLOBAL RACE FOR VIEWERS IS ON!

2015 European Nations with wealth, tech bandwidth, AND established TV viewers!• Germany, France, Norway, Sweden, Finland, Switzerland,

Austria

2015 Asian Nations: Singapore, Japan, South Korea, Taiwan, Malaysia

2017/18: India (1.33 billion) + Brazil (200million)

CHINA!??? (1.4 billion)

Netflix Goes Global• 2015/16/17 NETFLIX becomes

“available” WORLDWIDE!

The FIRST LEGITIMATE GLOBAL TV PROVIDER

“Available” in 190 countries (not China, Syria)

Streaming BANDWIDTH

Mostly Cities and wealthy urban areas

Tourist Centers and Hotel Districts

Most Popular Shows on Netflix Worldwide

Seven shows are the most popular in five countries or more.Netflix has a lot of global heavy hitters in its show lineup, with seven programs topping the list of favorites in at least five countries.

3%Most Popular in 8 Countries

My Love from the StarMost Popular in 7 Countries

13 Reasons WhyMost Popular in 5 Countries

BonesMost Popular in 5 Countries

Boys Over FlowersMost Popular in 5 Countries

Breaking BadMost Popular in 5 Countries

Sense8Most Popular in 5 Countries

Global/INTERNATIONAL VIEWERSThe HUNT for New International Viewers!

MAJOR New GLOBAL Markets:

New Audiences New languages Cultural Stories Actors Locations TECH REQUIREMENTS COSTS COMPETING PROVIDERS?

Hollywood Dropouts!1. Film/Hollywood Audience DROPs!!

– People are NOT going OUT to the movies as much

– In-home viewing or other “entertainment/leisure options”

– 13-24 Age demographic Drop

2. CGI Action films are Dominating Hollywood

3. Engineered Squels, Prequels, etc.

4. Cost of MoviegoingTickets…concessions…

5. Movies are one-shot hit-or-miss.

Movie-going?

Hollywood Dropouts—The Sequel

Multi-National Productions1. The Bodyguard

– Genre Drama/Political Thriller

– Production Companies World Productions, ITV, BBC Netflix.

– Executive Producers Simon Heath, Jed Mercurio, Elizabeth Kilgarriff

– Production Locations London, England.

2. Narcos– Genre International Crime Drama

– Production Company Gaumont Television =US TV division of the French Gaumont. Independent studio based in Los Angeles, designed to produce television programming for the U.S. and international markets.

– Executive Producers Chris Brancato, Carlo Bernard, Doug Miro, Katie O'Connell, Eric Newman, José Padilha, Elisa Todd Ellis

– Production Locations Colombia and the U.S.

– Companion Spin-off Series Narcos: Mexico Premiered on Netflix on November 16, 2018. ultimately developed as a companion series focusing on the illegal drug trade in Mexico.

3. Sense8 (The Wachowskis—Matrix)– Genre: Science Fiction

– 16 Cities in over 13 countries

– (The Wachowskis—Matrix)

– $108million/season$9million/episode

– Cancelled

A-List Hollywood FILM Actors & Directors Shifing to TELEVISION

1. Homecoming: Julia Roberts2. True Detective: Matthew McConaughey and Woody Harrelson, 3. Extant: Halle Berry4. Grace & Frankie: Jane Fonda 5. Goliath: Billy Bob Thornton6. The Americans--Kerri Russell7. Yellowstone--Kevin Costner8. Maddam Secretary--Tea Leoni9. Designated Survivor--Kiefer Sutherland10. Homeland--Claire Daines11. NCIS--Mark Harmon12. Fargo—Kristen Dunst

Claire Danes, Homeland Showtime

Matthew McConaughey and Woody Harrelson, True Detective HBO

Kirsten Dunst, Fargo FX Networks

1. Rise in Quality of TV Stories & Characters– Web playground for a “new creativity” in story– MORE Character and Plot Development in TV– Different and “edgy” stories

2. “Cinematic” Production Values of TV3. Longer: TV Series 13-20+

Episodes/Season4. Not Dependent upon a single Pilot

Episode or Nightly ratings (Advertisers) 5. Bigger budget TV Productions (Lord of

the Rings, The Crown, etc.)

COST$Big Budget Television Series

1. Orange is the New Black (Drama/Comedy)

– 7 Seasons

– $50 million/season

– $4million/episode

2. The Get Down (Baz Luhrmann – Moulin Rouge)

– The birth of Rap-Hip/Hop Bronx NYC

– 1 Season$120million budget

3. The CrownQueen Elizabeth – Most Expensive TV series Ever Made

– $35,000 replica of her wedding dress

– Life-sized replica of Buckingham Palace

– $130million/season; $13million/episode

4. Amazon Lord of the Rings (upcoming)– Set aside $1 Billion for 5 seasons (~$200million per season).

– Making it the most expensive TV series Yet.

5. Legacy Series from the Past: Friends

– Netflix spent $100 million to keep Friends through 2019.

6. Stand-up Comedy Specials:

1. Ellen DeGeneres--$20million for ONE stand up show.

2. Chris Rock. Netflix spent $40million for 2 stand-up comedy specials

Number of Original Scripted TV Series 2009-18

Highest-paid actors: Netflix, HBO,

Amazon, and Hulu

8. Aaron Paul (The Path, Hulu): $225,000 per episode

Hulu 7. [TIE] Julia Louis-Dreyfus (Veep, HBO): $250,000 per episode

Getty Images

7. [TIE] Billy Bob Thornton (Goliath, Amazon): $250,000 per episode

Amazon Video

6. [TIE] Hugh Laurie (Chance, Hulu): $275,000 per episode

Hulu

6. [TIE] Sarah Jessica Parker (Divorce, HBO): $275,000 per episode

6. [TIE] Naomi Watts (Gypsy, Netflix): $275,000 per episode

Jason Merritt/Getty Images

6. [TIE] Jeffrey Tambor (Transparent, Amazon): $275,000 per episode

Amazon/"Transparent"

5. [TIE] Emma Stone and Jonah Hill (Maniac, Netflix): $350,000 per episode

AFR

5. [TIE] Drew Barrymore (Santa Clarita Diet, Netflix): $350,000 per episode

Reuters

5. [TIE] Joel Kinnaman (Altered Carbon, Netflix): $350,000 per episode

etty Images

4. Dwayne Johnson (Ballers, HBO): $400,000 per episode

HBO

3. [TIE] Peter Dinklage, Lena Headey, Kit Harington, Emilia Clarke, Nikolaj Coster-Waldau (Game of Thrones, HBO): $500,000 per episode

HBO

2. Lauren Graham and Alexis Bledel (Gilmore Girls, Netflix): $750,000 per episode

WB/CW

1. Robert De Niro (Untitled, Amazon): $850,000 per episode

Film & TV Salaries: Above the Line"Above-the-line" – The individuals who guide and influence the creative direction, process, and voice of a film or TV program. Script and story writers, producers, directors, actors, and casting.

• Agents (Lawyer): $50,000 to $65,000; senior agents $200,000 $700,000;

• DOPs/Cinematographers: $2,000-30,000/week

• Film Director: $250k $10m/film

• TV Director: $25,145 for a half-hour episode and $42,701 for an hour

• PRODUCER: $250K-$2M

• COMMERCIAL VOICE ACTOR: $3K-$1M

• TV WRITER: $3K-$6K A WEEK

• FILM WRITER: $100K-$1M A DRAFT

BELOW THE LINE: The A to Z of Industry Pay“Below the Line” = The “crew.” Those people who are involved in pre-production, production, or post-production stages of filmmaking.

• EXTRA $148-300/DAY• ANIMATION DIRECTOR $200K• ART DIRECTOR $134K• ASSISTANT ART DIRECTOR $101K• BEST BOY $92K• BODY DOUBLE $33K• BOOM MIC OPERATOR $87K• CAMERA OPERATOR $96K• CARPENTER $61K• COSTUME DEPT. SUPERVISOR $91K• DOG HANDLER $54K• DIALECT COACH $125K• EDITOR $95K• FIRST ASSISTANT DIRECTOR $192K• GAFFER $59K• GRIP $102K

• HAIRSTYLIST $77K• LIGHTING TECHNICIAN (ENTRY-LEVEL) $53K• LOCATION MANAGER $112K• MAKEUP ARTIST $100K• MODEL BUILDER $68K• MUSIC MIXER $ 111K• PAYROLL ACCOUNTANT $66K• PERSONAL ASSISTANT FOR A CELEBRITY $80K• PROP MASTER $59K• PUBLICIST (STUDIO) $93K• SET DECORATOR $104K• SOUND EFFECTS EDITOR $88K• TEACHER (ON-SET) $88K• TRAILER EDITOR $81K• WIGMAKER, CLASS 1 $59K

Genre Theory1. Genres are baseline “Formulas”

2. Standard “Codes” and “Conventions”

– Story/plots

– Setting

– Actors

– Action

– Camerawork/Direction

3. Based upon:

– History of what has worked/$$$ (Viewers)

– “Trusted” and Predictable expectations (production & viewership)

– Conservative viewing habits. “Known” + twist

– Ease/Speed/Efficiency of production: Weekly 13-22 episodes

– High volume production Bingewatching

– Syndication (5-10+ seasons) sold as “Packages”

– Question: When and how can you BREAK from the GENRE FORMULAS? Will it be accepted and/or well received?

Baseline TV Genres

1. Comedy—The Office, Parks & Rec, Jane the Virgin, Gilmore Girls

2. Cop/Crime—Hawaii Five-0, The Rookie, True Detective, CSI, NCIS, Blue Bloods, …

3. Courtroom/Lawyer—The Good Wife, Law and Order

4. Hospital/Medical—ER, Grays Anatomy, Nurse Jackie, Chicago Fire

5. Drama

– Current Drama—Mad Men, Suits, Friday Night Lights

– Historical Drama—Game of Thrones, The Crown, The Vikings

– Family Drama—This is Us, Everwood, Modern Family

6. Political—Jack Ryan, Bodyguard, House of Cards, Madam Sec.

7. Spy/Thriller—The Americans, Homeland

8. Science Fiction —Firefly, Extant, Humans, Westworld, Dr. Who

9. Fantasy —Stranger Things, Sinbad, Once

10. Superhero —Arrow, The Flash, Agents of SHIELD, Supergirl

11. Horror—Dexter, Walking Dead, Zombies

– Serial Killer —Mind Hunter, Conversations w/a Killer

12. War — Band of Brothers, Crimson Tide,

13. Western —Hell on Wheels, Longmire…

Hospital v. Cop Genres The Rules, Codes, Conventions?

• Hospital/Medical • Cop/Detective/Crime

Historical Dramas1. Downton Abbey (went globally viral—BBC/PBS Amazon/Netflix)– most critically well-reviewed TV show in the world

– nominated for 11 Primetime Emmy awards

– ranked as PBS’ highest-rated drama ever

– average audience of 13.3 million

2. Mad Men (AMC Original)– Paved the way for Breaking Bad, The Walking Dead, and

Better Call Saul.

3. Turn (American Revolution)

4. Manhattan (Manhattan Project)

5. Hell on Wheels (Transcontinental Railway)

6. The Get Down (The Birth of Rap/Hip-Hop)

7. Waco (Waco Texas, Branch Davidians)

8. Unabomber Manhunt

Documentaries - Netflix

1. The Toys That Made Us

2. Wild Wild Country (controversial Indian guru Bhagwan Shree Rajneesh, Oregon)

3. Dogs

4. 7 Days Out (major event, 7 days before it begins)

5. Rotten – Global Food Supply

6. Chef's Table (World Renowned Chefs)

7. Abstract: The Art of Design

8. Last Chance U (Football Mississippi)

9. Conversations with a Killer: The Ted Bundy Tapes

10. The Day I Met El Chapo

11. Flint Town (Flint Michigan)

12. Follow This (Buzz Feed topics)

13. Marching Orders (Marching Band)