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Disney Prioritizes Streaming as Theater Industry Falls Further Behind

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  • Disney announced major restructuring plans Monday aimed at prioritizing streaming, a major move to come from one of the most powerful studios in the entertainment industry.
  • Under its new structure, Disney will form a whole new arm called Media and Entertainment Distribution Organization, which will be responsible for distribution and ad sales as well as overseeing the company’s streaming services.
  • CEO Bob Chapek says this is in line with how consumers want to take in content. While many see it as a knee-jerk reaction to the coronavirus pandemic, he said the decision was actually more of an effort to move towards the future of content viewing.
  • Regardless of the reasons behind it, Disney’s move towards streaming is a blow to theaters, which are already suffering during the pandemic. Early Tuesday, AMC predicted it could be out of money by the year’s end as studios continually choose to push back their movie release dates, or release them through VOD or streaming platforms.

Disney Prioritizes Streaming

Disney announced major restructuring plans Monday aimed at prioritizing distribution and content creation for its streaming platforms. 

The company is forming a new Media and Entertainment Distribution Organization, which will be responsible for distribution and ad sales as well as overseeing the company’s streaming services. On the content creation side, responsibilities for funneling programming to distribution will fall on three divisions at Disney.

Studios will focus on branded theatrical and episodic content based on franchises for theatrical exhibition and streaming services like Disney+; general entertainment will work on episodic and original long-form content for streaming, cable, and broadcast; and sports will focus on live sports and other related content.

The Media and Entertainment Distribution Organization will be headed up by Kareem Daniel, who has been working at the mouse house. Disney CEO Bob Chapek said this new strategy will support its plans to accelerate its direct-to-consumer business. 

“Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it,” he said in a press release. 

This is a huge announcement to come from one of the leading box office giants. Putting streaming ahead of movie theaters is a grave sign for theaters, which are already severely struggling during the coronavirus pandemic. However, while speaking to CNBC, Chapek claimed that COVID-19 complications were not the driving force in this decision, consumer preferences were. 

“Right now, [consumers] are voting with their pocketbooks and they’re voting very heavily towards Disney+. What we want to do is make sure we’re going to go the way that consumers want us to go,” Chapek explained.

“As you mentioned, COVID-19 impacted all of our traditional distribution businesses, but this is even more than reactionary, this is really progressive, this is looking out with a vision towards where we see the world going and to where we see consumers interacting with Disney+, ESPN+ and Hulu and where it’s going to go in the future.” 

Chapek believes this strategy allows Disney to make more objective decisions when it comes to distribution, as opposed to seeing content as predetermined to either land in theaters, on a network, or elsewhere. 

Streaming Becomes Dominant

Disney is also not the first major studio to recently shift to prioritizing streaming. Back in August, WarnerMedia announced a huge management shakeup as well as the departure of top executives all in an effort to put their streaming service, HBOMax, first. 

Movie theaters are not exactly pleased with moves like this since they are banking on studios for new content so they can stay alive through the pandemic. But studios have constantly been either delaying films far down their release calendars, or opting to release them through VOD or streaming, something that those in the theater industry have been vocally against.

Disney recently faced backlash from The International Union of Cinemas after announcing that one of its biggest ticket pictures, the new Pixar film “Soul” would be going directly to Disney+. 

“The decision on Soul is doubly frustrating for operators who were counting on the release after the film was previewed at a number of key European film festivals,” the union wrote in a statement. 

“Decisions to postpone titles, to bypass cinemas and the value they create are extremely disappointing – and concerning – and will only delay the day that the whole industry is able to put this crisis behind it,” the union continued.

“It is not only cinemas and audiences who are missing out – this situation must surely also be deeply frustrating for the creators and talents who want to see their films on the Big Screen.”

Issues for Movie Theaters

The fight theaters are being forced to confront cannot be understated. The pandemic is making it nearly impossible for the industry to rebound from its financial losses. On Tuesday morning, AMC said in a public filings report that it could run out of money by the year’s end. 

“Given the reduced movie slate for the fourth quarter, in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the Company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021,” the top movie chain wrote. 

AMC said that theatergoing at its sites is down 85% compared to this time last year. On top of social distancing requirements meaning that theaters can only be partially filled, the desire to go to theaters is also lacking. A poll from Variety showed that as of October, just over 20% of adults in the U.S. feel very or somewhat comfortable going to the movies. While this is an increase from how many felt comfortable earlier in the pandemic, it is still not enough to fill seats.

See what others are saying: (IndieWire) (CNBC) (Variety)

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Durte Dom Returns To TikTok Following Sexual Assault Accusation Levied Against Him

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  • YouTuber Dom Zeglaitis, a former member of David Dobrik’s Vlog Squad known online as Durte Dom, returned to the Internet less than one month after he was accused of sexually assaulting a woman in 2018 who was too drunk to consent.
  • Zeglaitis has not issued a response to the allegation, but in the past three days, he has posted a dozen TikToks that mostly consist of short sketches and jokes he filmed with friends. 
  • One post shows Zeglaitis participating in the “Bulletproof” challenge, with text in the clip reading, “You think you can hurt my feelings?!? I got kicked out of the Vlog Squad for…”
  • Several people, including major creators like Tana Mongeau and Ethan Klein, are now calling him out for seeming to make light out of a serious situation.

Durte Dom Returns To Internet

Former Vlog Squad member Dom Zeglaitis, also known as “Durte Dom,” has resumed posting on social media after nearly a month of silence since he was accused of sexual assault. 

A woman told Insider in March that Zeglaitis raped her while she was too drunk to consent to sexual activity in 2018. She said that she and her friends were hanging out with YouTuber David Dobrik’s Vlog Squad at the time. The accuser, who was under 21 the night of the alleged assault, claimed the group supplied her and her friends with alcohol. 

The fallout of this allegation has been significant. While Zeglaitis has yet to respond to it, Dobrik has issued multiple apologies and faced most of the financial repercussions as frontman of the group. Both Zeglaitis and Dobrik were later demonetized by YouTube. Dobrik also lost multiple sponsorship deals and bowed out of Dispo, a photo-sharing app he co-founded. He is now taking a break from YouTube and social media. 

Though Zeglaitis has returned to the Internet, he is still largely ignoring the sexual assault accusation levied against him. He specifically began posting on TikTok over the weekend, and since then has posted roughly a dozen videos on the platform. 

Durte Dom Jokes About The Vlog Squad on TikTok

Most of the videos are short sketches or comedy bits with his friends. In one, he and a friend are going through Omegle while Zeglaitis is off-screen. The friend asks the people on the other end of the chat “What are your thoughts on Durte Dom?” before Zeglaitis enters the shot.

Several of the videos continue to reference Zeglaitis’ sleazy, womanizing, reputation. One shows him claiming to have “smashed” adult film star Riley Reid. In another, he is sitting on a lounge chair throwing money at girls dancing next to him. 

The video generating the most attention, however, is his take on the viral “Bulletproof” challenge. That TikTok features him standing below a text block that reads “You think you can hurt my feelings?!? I got kicked out of the Vlog Squad for…” while the song “Bulletproof” plays in the background.

@dominykas

bruh why they kick me out?!? 😐😵 @daviddobrik #vlogsquad #foryou #tiktok

♬ original sound – DurteDom

In the caption of that video, he tagged Dobrik and asked “bruh why they kick me out?!?”

Creators Call Out Zeglaitis for Ignoring Allegation

This specific TikTok caught the attention of major creators, including Tana Mongeau and Ethan Klein, who dueted that video to call Zeglaitis out. 

“Someone please make this make sense to me,” Mongeau wrote.

“This mf serious?” Klein said.

They are not the only ones frustrated with Zeglaitis. Many responded to the video in the comment section shocked he was posting at all, bringing up the sexual assault allegation, and urging him to not treat it as a joke. 

The comment sections on the rest of his videos are similarly flooded with people who are outraged that he is posting regular content as though nothing had happened.

See what others are saying: (Insider)

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TikToker Neumane Called Out for Copying Content From Smaller Creators

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  • Kane Trujillo, a comedy TikToker known as @neumane, is facing backlash after fellow TikToker Joey Bailey posted a video noting that Trujillo has risen to popularity off content copied from several, often smaller, creators.
  • Bailey also shared an alleged audio message he received from Trujillo where he threatened Bailey to take his call-out video down before sending a second message promising to pursue legal action.
  • In a clip from a TikTok live stream, Trujillo addressed the controversy by saying that “nothing’s original” and seemingly admitting to copying.
  • “It’s not who made it first, it’s who does it better,” he said in the clip. “Who gives a f*ck about some little copied content? … I’m an actor. I’m not a writer, I’m not a f*cking storyteller…You give me a script, I will f*cking nail that sh*t. And I’m not gonna think of it, no, but I’m gonna make yours better.”

Stealing Accusations

Popular comedy TikToker Kane Trujillo, who has over 2.7 million followers and is known on the platform as @neumane, has been called out by fellow creators for a pattern of stealing content.

The latest creator sounding the alarm is Joey Bailey (@joey.bailey), who posted a video to the app on March 15 that showed Trujillo’s posts next to the original versions he appears to have replicated, often word for word and with nearly identical expressions.

Similar allegations regarding Trujillo were made on March 13 in a YouTube video from thatsjustchris.

@joey.bailey

they took this down so this is the last time I repost it

♬ original sound – Joey

In a follow-up TikTok and a longer YouTube video, Bailey went on to explain that he received an audio message from Trujillo through Instagram trying to get Bailey to take the call-out video down.

@joey.bailey

I got a lot of questions about the messages in the last post so heres the final update and that’s it

♬ original sound – Joey

“You can kindly take it down and we can just, you know, be cool and move on from all this sh*t, or you could just leave it up and have a lot of enemies from here on out,” the voice that allegedly belongs to Trujillo can be heard saying in the audio.

Bailey said he privated the video after that because he “didn’t want to become the drama TikToker,” but he eventually changed his mind, arguing that he wasn’t starting drama, he was just standing up for himself.

After he unprivated the video, he said Trujillo sent him another message promising to pursue legal action.

“As of today me & my management team will be proceeding with a False Accusation lawsuit against you. I wish we didn’t have to go this far but you leave me no choice,” that message read.

Copied Creators Express Mixed Feelings

In total, at least several creators appear to have had content copied by Trujillo: @nuhchez, @ty_t.v, @brodiefalgoust, @dawson.taylor1, @licout, @lemmuelmamotsau, and @joey.bailey.

In statements to The Daily Dot, some of those creators essentially said they’ve accepted that this is something that happens on TikTok.

“This is something I’ve come to accept because sadly TikTok is an app that will push stolen content and Suppress originality!” Natchez Ballinger (@nuhchez) told the outlet in an email. “Creators have stolen from me since I’ve joined the app, I take it as flattery in a way.”

“I mean yeah he did steal my video and it became more popular but it’s TikTok,” Dawson Anderson (@dawson.taylor1) told the outlet via Instagram. “I don’t really care all that much it’s a video trend not worth crying over.”

Still, others were much more frustrated.

“The thing with him is that he doesn’t steal ideas, he steals the video word for word, uses the same sound, the same gestures, and even the same wording without giving any credit to the creator whatsoever,” Brodie Falgoust (@brodiefalgoust) told The Daily Dot via Instagram. “That is how he gained all of his following, and continues to do it still (even after being called out). I get ripped off all the time but It’s frustrating as a smaller creator who is constantly coming out with original content when a person with a big following comes and takes credit for your originality.”

“People take my ideas but any creator that has been bigger than me has given me credit!” Falgoust continued.

“There is [a] large difference between following a trend and ripping off someone’s work shot for shot and word for word,” said another creator who spoke to the outlet anonymously out of feat of legal retaliation.

“A lot of users do not understand how much work some of these creators are putting into original content. And for Neumane to hunt down those smaller creators and reproduce their successful content as his own without acknowledging credit is exasperating. The real issue becomes the money and opportunity he is being given by eating off of the backs of others.”

Neumane’s Response

In a clip of a TikTok live stream reviewed by The Daily Dot, Neumane addressed the controversy by saying, “nothing’s original.” He also seemed to admit to copying.

“Imagine showing hate to somebody on the internet,” Trujillo reportedly said during the live stream. “Like bro, just show love. Who gives a f*ck about some little copied content? Like, just make it good, and yours will get a lot of views. Do good expression, act well. I’m an actor. I’m not a writer, I’m not a f*cking storyteller. I’m an actor. You give me a script, I will f*cking nail that sh*t. And I’m not gonna think of it, no, but I’m gonna make yours better.”

A viral TikTok by @ttdramanews covering the allegations against Trujillo shared portions of that clip, which also shows Trujillo saying, “It’s not who made it first, it’s who does it better.”

According to The Daily Dot, Trujillo talked about people needing to show love, though commenters quickly pointed out that he’s the one threatening others with legal action.

See what others are saying: (The Daily Dot) (Joey Bailey) (thatsjustchris)

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Netflix Strikes Deal for Rights To Sony Movies Following Theatrical Releases. Yes, That Includes Spider-Man.

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  • Netflix has secured the exclusive rights to stream Sony films following their theatrical releases, per a reported $1 billion deal between the streaming giant and movie studio. 
  • While the full details of the deal have not yet been officially published, it will begin with Sony’s 2022 slate of films and reportedly last for the following five years.
  • The agreement means Netflix will eventually be granted streaming rights to popular Marvel characters such as Morbius, as well as Venom and Spider-Man once future installments are released. 

Netflix Reach Massive Deal With Sony

Netflix has struck a multi-year licensing deal with Sony Pictures Entertainment that will grant it exclusive streaming rights to the studio’s theatrical titles.

The terms of the agreement have yet to be officially disclosed, but according to multiple media outlets, Netflix will pay Sony over $1 billion over the course of the next four years. The deal itself is set to begin with Sony’s 2022 slate and will reportedly last five years, with Netflix holding streaming rights to individual films for 18 months. 

Given the nature of the COVID-19 pandemic, it’s unclear whether some films will continue to have their release dates pushed back. It’s also unclear how long their theatrical windows will last; however, once released, Netflix will acquire streaming rights to films such as “Uncharted,” “Where the Crawdads Sing,” and “Bullet Train.”

Netflix Will Have Marvel Movies Once More

The deal will also grant Netflix access to a number of Marvel characters still owned by Sony. That includes the film “Morbius,” which is currently set to be released in January of next year.

It will also include future installments of the “Venom” and “Spider-Man” franchises, the latter of which is notable as it’s part of the Dinsey-owned Marvel Cinematic Universe. Outside of 2008’s “The Incredible Hulk,” Tom Holland’s “Spider-Man” films are the only other films set in the MCU that are not on Disney+. 

Prior to Disney+’s launch, Netflix held streaming rights to several MCU films, including “Black Panther,” “Thor: Ragnarok,” and “Avengers: Infinity War.” The shift of those massive blockbusters to another platform was a striking loss for Netflix, and the streaming service is no doubt itching to once again beef up its selection of superhero content.

It’s unclear whether or not the Sony deal will immediately allow Netflix to stream the upcoming films “Spider-Man: No Way Home” and “Venom: Let There Be Carnage” once they leave theaters. That’s because both are currently expected to be released later this year. 

That said, if sequels for these films are announced and can be expected to find their way to Netflix, the streaming giant will be able to acquire the rights to the films’ full library of installments, according to Deadline. Such a deal also exists for Jumanji’s library of movies. 

Sony’s Direct-to-Streaming Titles

Netflix will retain first-look rights to any of Sony’s potential direct-to-streaming titles, though that doesn’t necessarily mean it will acquire those films. Under that part of the deal, Sony still has the right to sell to other streaming platforms. 

While Sony has said it’s considering “a number” of direct-to-streaming releases, as Deadline projected, “in reality [that’s] likely just a couple a year and a minority of the studio’s overall slate.”

According to the Wall Street Journal, however, “Netflix has committed to ordering an undisclosed number of those films.”

See what others are saying: (Deadline) (Wall Street Journal) (IGN)

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