Morning Consult Entertainment: Week in Review & What's Ahead

By Sarah Shevenock

Week in Review

Advertising

The Hallmark Channel is moving to reinstate Zola commercials featuring a lesbian couple kissing, after the network pulled the ads in response to a campaign from the group One Million Moms. Hallmark Chief Executive and President Mike Perry said pulling the commercials was the “wrong decision” and that the network will be partnering with GLAAD to better represent the LGBTQ community in its media.

Fox Corp. will not advertise Lions Gate Entertainment Corp.’s “Bombshell,” the film dramatizing the sexual harassment scandal against late Fox News Chairman Roger Ailes, according to people familiar with the matter. Sources say Lions Gate did not seek to advertise on Fox News, but on Fox network, including live sporting events.

Streaming services

In a financial filing, Netflix Inc. shared information about its regional subscriber growth, revealing that the Asia-Pacific region, its fastest-growing market, has seen a 53 percent year-over-year increase in subscribers as of the third quarter, with subscribers now totaling 14.5 million. Europe, the Middle East and Africa have nearly 47.4 million paid subscribers, a 40 percent year-over-year increase that puts it just behind the United States and Canada, Netflix’s largest region.

A Cowen & Co. report estimates that 6 percent of Netflix subscribers canceled their subscription to the service after signing up for Walt Disney Co.’s Disney+. The report also found that roughly one-third of Disney+’s estimated 24 million subscribers are accessing it via a free offer.

Apple Inc. executives have met with representatives from MGM Holdings Inc. and the Pac-12 Conference this year to discuss obtaining James Bond licensing rights and college sports rights, respectively, as part of an effort to expand Apple TV+’s offerings, according to people familiar with the matter. Sources say that while talks never reached advanced stages, the moves show the company’s willingness to make a multibillion-dollar content agreement.

NBCUniversal

Jeff Shell will take over as NBCUniversal chief executive, reporting to Steve Burke starting Jan. 1, before Burke departs the company on Aug. 14, according to a press release. The change comes as NBCUniversal is set to launch its Peacock streaming service and televise the Tokyo Olympics in 2020.

NBCUniversal is considering a $10 monthly price point for an ad-free version of its forthcoming Peacock streaming service, according to people familiar with the matter, with final pricing details set to be revealed during an investor day presentation on Jan. 16. Peacock is expected to offer consumers multiple tiers, including a free, ad-supported version for Comcast and other cable subscribers.

Deals

ViacomCBS Inc. has finalized a deal to acquire a 49 percent stake in Miramax for around $375 million, which will see Paramount Pictures distribute Miramax library titles, including “Pulp Fiction” and “Shakespeare in Love,” as well as produce and distribute new projects based on Miramax intellectual property. ViacomCBS will make an upfront payment of around $150 million in cash, and will make annual payments of $45 million over the next five years.

ICM Partners, which has historically resisted using outside funds, is taking on a $150 million investment from the private equity firm Crestview Partners, according to a person familiar with the matter, who said Crestview Partners will then own a one-third minority stake in the agency. The investment is expected to help fund international growth, but not activities outside talent representation.

Companies including Hemisphere Media Group Inc. and Platinum Equity, as well as former Viacom Inc. Chief Financial Officer Wade Davis, have approached Univision Communications Inc. about acquiring the broadcaster, according to people familiar with the matter. Sources said any deal for Univision – which said earlier this year that it has about $7.3 billion of debt – is not final and may not materialize at all.

TiVo Corp. plans to merge with audio, imaging and computing technology company Xperi Corp. in a $3 billion, all-stock deal that is expected to close in the second quarter of 2020. The combined company will use the Xperi name, but keep selling TiVo’s entertainment services under the TiVo brand.

#MeToo

“60 Minutes” producer Cassandra Vinograd has filed a lawsuit against CBS, alleging she lost assignments at work and was told to stay away from the office after notifying network executives and human resources that senior producer Michael Gavshon sent her an inappropriate picture. Gavshon said he apologized and reported the incident after it happened, while CBS said in a statement that it is “reviewing the complaint” and will “vigorously defend against this lawsuit.”

Kaja Sokola, a former teen model, has filed a lawsuit in the New York State Supreme Court against Harvey Weinstein, Miramax and former Miramax owner Disney, alleging that Weinstein sexually assaulted her when she was 16. Sokola removed herself from the federal class-action suit that was settled earlier this month for $47 million, saying in a statement that she “cannot accept the proposed ‘global settlement’ as fair or just.”

What’s Ahead

The 77th Annual Golden Globe Awards, hosted by Ricky Gervais, will be held Jan. 5 at 8 p.m. EST. Netflix earned 34 nominations across the film and television categories, including six for “Marriage Story” and five for “The Irishman.”

CES 2020 gets underway on Jan. 7 and runs through Jan. 10. Meg Whitman and Jeffrey Katzenberg will give a keynote discussing Quibi, while various headliner conversations will feature AMC Networks, Spotify Technology SA’s Chief Content Officer Dawn Ostroff and CBS Interactive and ViacomCBS’s Chief Digital Officer Marc DeBevoise.

The Critics Choice Awards are on Jan. 12. On the film side, “The Irishman” leads with 14 nominations, followed by “Once Upon a Time…in Hollywood” with 12 nominations. “When They See Us” leads television nominees with six nominations.

Comcast Corp. is set to hold an investor meeting to discuss its Peacock streaming service on Jan. 16.

Events Calendar (All Times Local)

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