Monday, May 12, 2014

Simon Cowell: Life after X Factor


 
 There is $$$ in Music-based Animated Films and Simon Cowell Wants in on the Action

by M. Quintero Moore, BACKLINE MAGAZINE
 
Attention songwriters, producers and musicians. If you haven't already, it's time to rethink your business model and consider adding animated films to your list. That's what Simon Cowell is doing. His company, Syco Entertainment has formed a partnership with Australia -based Logic Entertainment ("The Lego Movie," "Happy Feet") to create and develop music-based animated films and animation/live-action movies. Sony Pictures have already purchased their first film installment which has a 2016 release date.

Banking on their first project to become a franchise, the two CEOs, Cowell and Zerah Nalbandian, are looking at  movies that bring together live action and animated sequences, straight musicals like "Frozen," and song-driven films such as "Despicable Me 2", from which Pharrell Williams' No. 1 single "Happy" became a hit long after the movie had completed its theatrical life-cycle.
 
This venture is Simon's first real project into visual media since Fox canceled 'The X Factor' canceled after three short seasons.



 







 



 
 
 
 

 
 


 


 

 

 

 

 

Friday, May 9, 2014

Zoe Saldana Rocks 'Rosemary's Baby'




Actress Zoe Saldana arrives at the Metropolitan Museum of Art Costume Institute Gala Benefit celebrating the opening of ''Charles James: Beyond Fashion'' in Upper Manhattan, New York, May 5, 2014.
Credit: Reuters/Lucas Jackson





LOS ANGELES Thu May 8, 2014 8:40am EDT


(Reuters) After 45 years, "Rosemary's Baby" is back, with a new lead actress, location and platform - a television network that wants viewers to watch TV when it happens.

The classic horror remake, billed by Comcast Corp's NBC as a two-part "miniseries event" starting Sunday, marks the latest TV show to lure film talent and pick up the slack as Hollywood gravitates to big-budget blockbusters or microbudget films. 

Previously adapted by Roman Polanski in a 1968 film starring Mia Farrow, "Rosemary's Baby" taps film actress Zoe Saldana for the modern Rosemary Woodhouse in her first leading TV role.

After suffering a miscarriage, Rosemary and husband Guy move to Paris for a fresh start and befriend a mysterious wealthy couple who become their benefactors. As Rosemary becomes pregnant again, she suffers frightening hallucinations and symptoms as she realizes dark forces might be at play.

NBC's decision to air a four-hour adaptation of "Rosemary's Baby" and Saldana's move to network TV highlights the potential for film talent to cash in on television's rising clout.

Other recent examples include Matthew McConaughey and Woody Harrelson teaming up on gritty HBO series "True Detective," and actor-director Billy Bob Thornton on FX's "Fargo" series.

"Both networks and cable stations are willing to take risks right now and they're a great incubator and great home for people who just want to get their material out there," said David Stern, executive producer of NBC's "Rosemary's Baby."

By marketing the show as an "event," NBC hopes to entice viewers to watch live, something that advertisers covet as viewing habits shift towards delayed viewing through digital video recorders (DVR) where viewers can skip commercials. 

"We're getting unbelievable actors and filmmakers to do these things, so it's as close as we can come to a theater-like experience, but I think people really are in the place where they want that in the luxury of their own home," Stern said.

 'THERE WAS NO PLACE FOR ME'

Talent from the film world moved to TV when studios began to focus on sequels to hit films or stories based on books or characters already familiar to audiences, said film and TV producer Lynda Obst.

The shift accelerated around 2008 as DVD sales dropped and studios picked films drawing overseas ticket sales, she said.

Oscar-winning Thornton said when he began his film career in the 1980s, the idea of doing television was "like his career is over," and his place in the film industry was in movies with budgets of $20 million to $25 million, which Hollywood now struggles to finance. 

"There was no place for me," he said. "All of a sudden the bottom fell out of that world, so somebody had the great idea, which is 'Let's do 10-hour independent films on television.'"

Now the actor has moved to Fox TV's sister channel FX to lead the 10-part limited series "Fargo," made on a budget between $10 million and $20 million, which has garnered positive reviews, and 2.7 million watched the premiere live.

This year, Time Warner Inc's premium cable channel HBO debuted the anthology series format with "True Detective," where each season will feature a new cast and storyline.

The first eight-part season was made for an estimated $3 million to $4 million per episode according to senior analyst Tony Wible at Janney Capital Markets.

The show notched 11.9 million viewers per episode, the highest ratings for the first season of an HBO original series, and not only won critical acclaim for its stars, but also for emerging director Cary Fukunaga, who will next direct Stephen King's horror novel "It" into a film.

Fukunaga shows how filmmakers can display their story-telling talents over a longer period of time on TV and possibly parlay that into a topline, big budget Hollywood gig.

But for Thornton, the future of films lies in television and online streaming platforms such as Netflix.

"Television has such a cachet now," he said. "They've got all these terrific actors and writers; in other words it's like Mighty Mouse, 'Here I come to save the day.' That's what TV is doing."

(Additional reporting by Eric Kelsey and Lisa Richwine; Editing by Mary Milliken and Cynthia Osterman)


Apple Reports Closing in on $3.2 Billion Purchase of Beats Electronics






BACKLINE BUSINESS BRIEF

Apple Closing in on $3.2 Billion Purchase of Beats Electronics (Report):
Apple is closing in on a deal to acquire Beats Electronics for $3.2 billion, according to a Financial Times report. If completed at that price, the deal would be the largest ever for Apple. The deal is said to include both Beats’ music subscription service and its hardware business, which sells Beats by Dr. Dre headphones and portable speakers. The deal hasn’t been finalized, but could be announced as soon as next week.

WMG Attributes Q2 Decline to Light Release Schedule:
The Warner Music Group attributed its fiscal second quarter decline in revenue to a light release schedule while blaming growth in red ink to an increase in product costs. For the quarter ended March 31, 2014, the company lost $60 million on revenues of $653 million, versus a $2 million net loss on revenues of $675 million for the corresponding period in 2013.

'Now 50' Eyeing Top Spot on Billboard 200 Chart:
The latest "Now That's What I Call Music!" compilation may bring an end to the "Frozen" soundtrack's reign at No. 1 on the Billboard 200 chart. Industry sources forecast "Now 50" to sell more than 120,000 copies by the end of the tracking week on Sunday, May 11.

John Malone's Liberty Media Buys More Charter Shares, Posts Mixed Financials:
John Malone's Liberty Media on Thursday reported mixed first-quarter financials as revenue rose, operating profit climbed slightly and net profit declined after a big one-time gain in the year-ago period.

Tech Giants Join Neutrality Furor in Open Letter, FCC Responds with Open Email:
Today has brought two separate reactions to the raging net neutrality debate; the FCC has thrown open its doors, while the most powerful companies on the web have thrown down the gauntlet.


source: Billboard.com

Thursday, May 8, 2014

Warner Music Group (WMG) Reports Q2 Revenue Down 3%



  
WARNER MUSIC GROUP CORP. has reported financial results for Q2.
 
The highlights:
  • Revenue declined 3% on a constant-currency basis.
  • Digital revenue increased 6% on a constant-currency basis.
  • Cash balance improved to $149 million for the quarter ended March 31, 2014 from $129 million for the quarter ended DEC. 31, 2013.
  • Net loss was $59 million versus net income of $4 million in the prior-year quarter.
“We have begun to see the strength in our release schedule for the remainder of the fiscal year,” said CEO STEPHEN COOPER. “Through our A&R, marketing and promotional efforts, we continue to discover and develop new artists and further the careers of established artists.” “We were very pleased to complete another successful refinancing last month, which will generate cash interest savings of approximately $30 million per year,” added EVP/CFO BRIAN ROBERTS. “We remain strongly committed to delivering solid free cash flow in the quarters to come.”
 
For the quarter, revenue declined 3.3% (or 2.7% in constant currency). Excluding the JULY 1, 2013 acquisition of PARLOPHONE LABEL GROUP, revenue declined 13.9% (or 13.4% in constant currency), "due to a lighter release schedule than in the prior-year quarter," wrote the company. Including PLG, the growth in artist services and expanded rights revenue, digital revenue and Recorded Music licensing revenue was more than offset by declines in Recorded Music physical revenue and Music Publishing mechanical and performance revenue. Constant-currency revenue growth in the U.K., ITALY, FRANCE and other parts of EUROPE, driven in part by the PLG acquisition, was more than offset by declines in the U.S., CANADA, JAPAN and other parts of ASIA. Digital revenue grew 5.0% (or 5.7% in constant currency), and digital revenue represented 45.2% of total revenue, compared to 41.6% in the prior-year quarter. Growth in digital revenue reflects the acquisition of PLG as well as growth in streaming revenue, partially offset by declines in download revenue largely resulting from the release schedule. Excluding PLG, digital revenue declined 5.3% (or 4.7% in constant currency).
 
Adjusted operating margin declined 4.6% to 4.3% from 8.9%. Adjusted OIBDA declined 10.1% to $107 million and Adjusted OIBDA margin contracted 1.2 percentage points to 16.4% from 17.6%. The decline in Adjusted OIBDA and Adjusted OIBDA margin is a result of the release schedule. Excluding PLG, Adjusted OIBDA declined 21.8% to $93 million and Adjusted OIBDA margin declined 1.6 percentage points to 16.0%.
 
Adjusted net loss was $26 million compared to adjusted net income of $7 million in the prior-year quarter.
As of MARCH 31, 2014, the company reported a cash balance of $149 million, total long-term debt of $2.869 billion and net debt (total long-term debt, including the current portion, minus cash) of $2.720 billion. There was no balance outstanding on the revolver as of March 31, 2014.
 
Recorded Music

Recorded Music revenue declined 3.4% (or 2.7% in constant currency). Excluding PLG, revenue declined 16.4% (or 15.8% in constant currency) due to the release schedule. Including PLG, artist services and expanded-rights revenue, digital revenue and licensing revenue all grew, but were more than offset by a decline in physical revenue. Artist services and expanded rights revenue growth was primarily driven by an increase in concert promotion revenue in ITALY and FRANCE. Licensing revenue growth was driven by the acquisition of PLG. Digital revenue growth of 4.2% (or 5.0% in constant currency) was driven by the acquisition of PLG as well as growth in streaming revenue. Digital revenue represented 51.0% of total Recorded Music revenue, compared to 47.3% in the prior-year quarter. Domestic Recorded Music digital revenue was $139 million, or 63.5% of total domestic Recorded Music revenue. Excluding PLG, digital revenue declined 6.9% (or 6.2% in constant currency). Major sellers included BRUNO MARS, JASON DERULO, MACKLEMORE & RYAN LEWIS, KYLIE MINOGUE and PASSENGER.

Recorded Music Adjusted operating margin contracted 5.5% to 2.6% from 8.1% in the prior-year quarter. Recorded Music Adjusted OIBDA was down 16.3% to $72 million while Recorded Music Adjusted OIBDA margin declined 2.0 percentage points to 13.5% from 15.5%. Excluding PLG, Recorded Music Adjusted OIBDA declined 32.6% to $58 million and Recorded Music Adjusted OIBDA margin declined 3.0 percentage points to 12.5% due to the release schedule and an increase in product costs associated with growth in artist services and expanded rights revenue.

Music Publishing

Music Publishing revenue declined 3.9% on both an as-reported and constant-currency basis. Digital revenue grew 9.5%, on both an as-reported and constant-currency basis, due to growth in streaming revenue. Synchronization revenue was flat (or down 3.6% in constant currency), reflecting the timing of deals. Performance revenue was down $1 million, or 2.1% (4.1% in constant currency), driven by the timing of collection society distributions. Mechanical revenue fell 18.5%, on both an as-reported and constant-currency basis, due to the continued transition from physical to digital sales.


Music Publishing operating margin improved 1.2% to 30.3% from 29.1% in the prior-year quarter. Music Publishing OIBDA grew 3.8% to $55 million, while Music Publishing OIBDA margin expanded 3.4 percentage points to 45.1% from 41.7% due to a one-time benefit to royalty costs.

Source: All Access Music Group