WEBVTT - Hollywood's Big Challenge: Resuming Production in a Pandemic 0:00:00.080 --> 0:00:12.240 Ye, welcome to another episode of Varieties Strictly Business podcast, 0:00:12.280 --> 0:00:14.360 where we talked with some of the brightest minds working 0:00:14.360 --> 0:00:18.959 in media today. I mean Andrew Wallenstein with Variety Intelligence Platform. 0:00:19.000 --> 0:00:21.439 Like everything else these days, the TV industry is in 0:00:21.560 --> 0:00:23.919 a state of flux, to say the least. That's meant 0:00:23.920 --> 0:00:27.600 a recalibration of all kinds of practices and processes for 0:00:27.760 --> 0:00:30.400 people like my next guest, Ken Basin, is not just 0:00:30.480 --> 0:00:34.159 the author of the book The Business of Television, he's 0:00:34.200 --> 0:00:37.479 the head of business Affairs at Paramount Television. Welcome back 0:00:37.479 --> 0:00:40.440 to Strictly Business. Ken. Thanks Andy, it's really fun to 0:00:40.440 --> 0:00:42.559 be back. Yeah. I went back and checked and you 0:00:42.560 --> 0:00:48.000 were on the podcast almost exactly two years ago, July one, 0:00:48.800 --> 0:00:51.880 And it's only been two years, but honestly it feels 0:00:52.000 --> 0:00:56.240 like two hundred. Yeah, you know, I think it's it's 0:00:56.360 --> 0:00:59.000 been an exciting decade since I last spoke to you. 0:00:59.280 --> 0:01:04.440 I think we've all lived many lifetimes in journeys since then. 0:01:04.640 --> 0:01:07.480 So yeah, you know, no interesting updates, right, we can 0:01:07.520 --> 0:01:09.360 make a quick short one of this. I'm sure it 0:01:09.360 --> 0:01:13.119 should be pretty simple. Yeah. When we last talked, peak 0:01:13.200 --> 0:01:16.039 TV was topic a and it seemed like the industry's 0:01:16.080 --> 0:01:20.319 worst problem was there's too many TV shows. Fast forward 0:01:20.360 --> 0:01:23.840 to now and there's barely any shows in production due 0:01:23.880 --> 0:01:27.520 to the pandemic. And I'd imagine that means deal making 0:01:27.640 --> 0:01:31.800 is going quite differently for you these days. Definitely, I mean, 0:01:31.959 --> 0:01:36.160 certainly in the simplest terms. The focus is on development 0:01:36.240 --> 0:01:38.280 right now because that's what we're in a position to do. 0:01:38.920 --> 0:01:42.240 And uh, you know, Paramount, like every company, has been 0:01:42.240 --> 0:01:45.160 thinking hard about how we can continue to do the 0:01:45.200 --> 0:01:47.800 most business in the best way with the circumstances that 0:01:47.840 --> 0:01:49.680 are in front of us. And so we know that, 0:01:50.440 --> 0:01:51.760 you know, there's a lot of work to do to 0:01:51.880 --> 0:01:53.880 manage the pandemic right now, but that there will be 0:01:53.920 --> 0:01:56.800 another side of it, and so we're preparing ourselves with 0:01:56.880 --> 0:02:02.560 a lot of new project generation, still working extensively with 0:02:02.640 --> 0:02:07.640 writers and producers, trying to be very thoughtful about how 0:02:07.760 --> 0:02:10.280 we put projects together and when we take them to 0:02:10.360 --> 0:02:12.400 market to make sure that they get the best opportunity 0:02:12.440 --> 0:02:16.360 to succeed and don't get swallowed up. Uh, within the 0:02:16.400 --> 0:02:20.400 moment that we're in. But business is absolutely moving forward. 0:02:20.880 --> 0:02:23.320 If you had asked me in March, what would I 0:02:23.360 --> 0:02:25.400 be doing if lockdown was still going in late July, 0:02:25.520 --> 0:02:27.920 I would have answered, probably a lot of yoga and 0:02:27.960 --> 0:02:30.320 building legos. But as it is, I'm as busy as 0:02:30.360 --> 0:02:33.240 I was on the first day of the lockdown, which 0:02:33.240 --> 0:02:35.600 is as busy as I was a week before it began. Well, 0:02:35.639 --> 0:02:38.880 let's put development aside for a second. Is there any 0:02:38.919 --> 0:02:43.920 activity with regard to production resuming at some point for 0:02:44.000 --> 0:02:46.520 shows that have obviously already made it through development and 0:02:46.560 --> 0:02:49.240 are ready to go and all the things that go 0:02:49.360 --> 0:02:54.400 into creating a safe environment for production. Should it happen 0:02:54.440 --> 0:02:58.239 again anytime soon. Absolutely, And there's a couple of wings 0:02:58.240 --> 0:03:04.239 in which that's taking place. One is just extensive dealmaking 0:03:04.360 --> 0:03:06.440 is is one of the right words, but really just 0:03:06.560 --> 0:03:11.280 coordination and collaboration between you know, studios and networks in 0:03:11.320 --> 0:03:14.680 the environment, working together to come up with plans for 0:03:14.919 --> 0:03:18.000 how we return and working to figure out what are 0:03:18.080 --> 0:03:21.160 the sort of economic consequences of the moment and how 0:03:21.200 --> 0:03:23.720 those are going to be borne by the various parties 0:03:23.760 --> 0:03:27.480 involved with the show. Um, you know, I think every 0:03:27.560 --> 0:03:30.840 large company is undertaking its own process to come up 0:03:30.919 --> 0:03:34.160 with return to work rules, the new procedures that we 0:03:34.240 --> 0:03:37.520 want in place to assure the safety and security of 0:03:37.600 --> 0:03:41.080 cast and crew, but our network partners have opinions about 0:03:41.080 --> 0:03:42.720 that sort of thing as well, and so part of 0:03:42.760 --> 0:03:45.480 the process is, uh, you know, coming up with joint 0:03:45.520 --> 0:03:51.160 plans that incorporate the priorities and needs and concerns of 0:03:51.720 --> 0:03:54.840 both the networks and the studios. And in a sense, uh, 0:03:55.040 --> 0:03:56.440 you know, those are only two of the voices of 0:03:56.440 --> 0:03:59.920 the room. We're also incorporating the opinions and requirements of government, 0:04:00.240 --> 0:04:03.520 where in extensive negotiations with the unions, all of them 0:04:03.520 --> 0:04:07.760 over return to work rules, um, which involves you know, 0:04:07.840 --> 0:04:09.600 a lot of commitments to them about how to keep 0:04:09.600 --> 0:04:13.000 their members safe and all the while, you know, all 0:04:13.040 --> 0:04:16.200 of these things come with costs. So we are you know, 0:04:16.520 --> 0:04:20.719 in constant dialogue with the networks about what's the appropriate 0:04:20.760 --> 0:04:23.440 allocation of those burdens in a way that is both 0:04:23.640 --> 0:04:27.720 fair and also frankly allows these things to continue. I 0:04:27.760 --> 0:04:31.200 don't think it's anybody's desire or really that anybody would 0:04:31.200 --> 0:04:37.039 be well served by completely disclaiming responsibility for for any 0:04:37.080 --> 0:04:40.000 aspect of what's going on. One of the lessons certainly 0:04:41.040 --> 0:04:43.000 I'm taking, and I hope others are taking of this 0:04:43.080 --> 0:04:47.599 pandemic moment is we live in a complex, interconnected ecosystem 0:04:47.640 --> 0:04:50.039 where we all rely on each other. I mean, really, 0:04:50.040 --> 0:04:52.360 we should have all known this all along, and so 0:04:52.480 --> 0:04:56.200 we're trying to bring that attitude and perspective into coming 0:04:56.279 --> 0:04:59.599 up with solutions for what we're dealing with right now, 0:04:59.720 --> 0:05:02.880 because as there is economic pain to go around, and um, 0:05:02.920 --> 0:05:06.000 you know, we ultimately want this to be sustainable and 0:05:06.000 --> 0:05:09.280 survivable for ourselves and the parties that we work with 0:05:09.320 --> 0:05:12.359 every day. In addition, as we're now a few months in, 0:05:12.480 --> 0:05:16.600 we are starting to look ahead to deal making four 0:05:16.720 --> 0:05:20.520 returns to production and that's a you know, tentative process 0:05:20.560 --> 0:05:23.920 and it's a very i think custom process on our 0:05:23.920 --> 0:05:27.920 project by project basis, because the situation isn't different everywhere, 0:05:28.040 --> 0:05:30.840 excuse me, isn't identical everywhere in the world, and so 0:05:31.080 --> 0:05:35.120 are sort of preparedness and anticipated timetables for going back 0:05:35.160 --> 0:05:38.760 to production in Vancouver may be very different from those 0:05:38.800 --> 0:05:42.160 in Los Angeles, may be very different from those in Australia, 0:05:42.480 --> 0:05:44.559 depending on conditions on the ground. But we are also 0:05:44.600 --> 0:05:48.760 starting the process of making deals with you know, line producers, 0:05:48.839 --> 0:05:51.599 with casting directors and with other sort of key contributors 0:05:51.640 --> 0:05:55.200 to the production of a series in anticipation of coming back, 0:05:55.680 --> 0:05:58.560 but doing our best to prepare ourselves if those uh, 0:05:58.800 --> 0:06:01.080 you know, optimistic hopes are an't always born out and 0:06:01.120 --> 0:06:04.240 we have to push back even further. This all sounds 0:06:04.279 --> 0:06:08.920 horrifically complex, and I know, even in the best of circumstances, 0:06:09.600 --> 0:06:13.080 UH can be quite contentious. So what is the culture 0:06:13.080 --> 0:06:16.960 of deal making right now? Because everyone's got to you know, 0:06:17.160 --> 0:06:20.520 row the yours in the same direction to make it work. Yeah, 0:06:20.600 --> 0:06:23.279 and I think there's a recognition of that. And I uh, 0:06:23.440 --> 0:06:26.960 certainly one thing that I've observed and marveled at with 0:06:27.080 --> 0:06:30.000 others who do what I do is, for the most part, 0:06:30.160 --> 0:06:33.600 the culture of deal making right now has been very 0:06:33.600 --> 0:06:37.159 positive and collaborative. I think there's a sense both that 0:06:38.080 --> 0:06:41.719 on a professional and industrial level it is incumbent upon 0:06:41.760 --> 0:06:43.760 all of us to figure this out so all of 0:06:43.839 --> 0:06:48.240 us can continue to you know, earn revenue, run our companies, 0:06:48.600 --> 0:06:51.400 make projects. And at the same time, I think there's 0:06:51.440 --> 0:06:55.560 a recognition among everybody who's you know, bouncing a kid 0:06:55.640 --> 0:06:58.680 on their knee during their work zoom meetings or otherwise 0:06:58.720 --> 0:07:03.080 trying to reconcile uh, their their parental responsibilities of professional 0:07:03.120 --> 0:07:06.520 responsibilities and maybe just a tiny corner of personal sanity 0:07:06.560 --> 0:07:08.320 that everybody on the other side of the phone or 0:07:08.320 --> 0:07:09.840 the other side of the zoom is going through much 0:07:09.840 --> 0:07:12.600 the same thing. And so I think, um, it's really 0:07:12.640 --> 0:07:15.440 been a healthy environment where people have kind of brought 0:07:15.440 --> 0:07:19.480 their best selves to the negotiations, um, and and try 0:07:19.560 --> 0:07:22.280 to approach things in a way that's solution oriented rather 0:07:22.320 --> 0:07:26.160 than adversarial in a negotiating climate that is sometimes you know, 0:07:26.280 --> 0:07:30.080 particularly adversarial among many industries, I think as Hollywood has 0:07:30.080 --> 0:07:34.640 a reputation for I'd say if in deal making, one 0:07:35.040 --> 0:07:37.760 clause I've heard more about in the last four months 0:07:37.760 --> 0:07:42.720 than possibly the last ten years is forced masure, which 0:07:43.360 --> 0:07:48.200 I can only imagine how different those clauses are in 0:07:48.320 --> 0:07:53.679 terms of how they're structured going forward. Yeah, So, first 0:07:53.680 --> 0:07:56.200 of all, I mean the biggest difference is that as 0:07:56.240 --> 0:07:58.040 you say that, it's it's a pair of words on 0:07:58.080 --> 0:08:03.200 everybody's lips, because traditionally deal making, uh, you know, force masure, uh. 0:08:03.240 --> 0:08:07.880 And just to kind of define terms for for those 0:08:08.240 --> 0:08:11.000 that it is you know, second nature to your force 0:08:11.080 --> 0:08:15.960 masure is a concept under basic contract law about excusing 0:08:16.000 --> 0:08:19.880 performance if there is a sort of major, unexpected third 0:08:19.920 --> 0:08:24.040 party event that interferes with parties doing business under contract. 0:08:24.080 --> 0:08:26.800 And so the classic examples of force masu are war 0:08:27.600 --> 0:08:33.199 um uh. Labor strikes can be considered force masures uh. Floods, fires, 0:08:33.400 --> 0:08:36.960 big sort of natural disasters, earthquakes, acts of God is 0:08:37.000 --> 0:08:41.120 a sort of synonym that sometimes used. And in traditional 0:08:41.160 --> 0:08:43.520 Hollywood deal making, you always knew that the force masure 0:08:43.600 --> 0:08:46.000 was kind of a background aspect of virtually any agreement 0:08:46.000 --> 0:08:47.880 that you entered into, but it was something you virtually 0:08:47.960 --> 0:08:51.480 never talked about. It was routine. Um. It was something 0:08:51.520 --> 0:08:54.240 that never came up the deal making phase where people 0:08:54.280 --> 0:08:56.360 are focused on substantive terms. It was something that you 0:08:56.480 --> 0:08:58.880 worked out in the paperwork once you got past that 0:08:58.920 --> 0:09:05.000 first step. Now, especially with an eye towards productions coming back, uh, 0:09:05.080 --> 0:09:09.640 you know, people are aware that the that force masure 0:09:09.679 --> 0:09:12.199 plays an important role in what we're doing right now. 0:09:12.240 --> 0:09:14.600 And really, for the first time in my career, force 0:09:14.679 --> 0:09:17.320 masur is being introduced as a deal point in the 0:09:17.360 --> 0:09:20.480 initial deal making phases. Uh. And one of the things 0:09:20.520 --> 0:09:22.760 that's interesting about it is there is no sort of 0:09:22.760 --> 0:09:27.880 disparity of information out there. Everybody's negotiating these points kind 0:09:27.920 --> 0:09:29.840 of you know, looking at the world and having the 0:09:29.920 --> 0:09:34.960 same observations and experiences, and so Talent are looking for 0:09:35.000 --> 0:09:39.080 protections that if there's a resurgence of COVID that you know, 0:09:39.160 --> 0:09:42.720 shuts production back down again after it resumes that they 0:09:42.760 --> 0:09:46.800 will be protected in their compensation or at least, um 0:09:46.840 --> 0:09:49.480 you protected in their flexibility if they don't want to 0:09:49.480 --> 0:09:54.240 wait around indefinitely. And studios are as finally attuned as 0:09:54.280 --> 0:09:57.920 ever to the importance of these clauses in protecting ourselves 0:09:58.440 --> 0:10:01.240 because while we're not looking to s to manipulate any 0:10:01.280 --> 0:10:04.920 situation with Talent, if we are forced to shut down production, 0:10:05.240 --> 0:10:07.040 we need to be able to mitigate the expense of 0:10:07.120 --> 0:10:09.880 that and um, you know, protect our ability to keep 0:10:10.160 --> 0:10:13.760 key cast and crew together. So uh, you know, something 0:10:13.800 --> 0:10:16.960 that became that spent many years as an afterthought has 0:10:17.000 --> 0:10:21.120 become a central deal point, which you know, again brand 0:10:21.120 --> 0:10:24.880 new to all of us in this game. Another aspect 0:10:24.920 --> 0:10:27.920 that I would imagine is changing much for you is 0:10:28.440 --> 0:10:33.920 how you're dealing with the AMPTP these days, given that 0:10:34.160 --> 0:10:38.840 there's also the backdrop of all this pandemic issues playing out. 0:10:39.080 --> 0:10:45.760 While tensions with the guilds are obviously front and center. Uh, 0:10:46.120 --> 0:10:50.840 what has that been like? Sure? So Uh, look, was 0:10:50.840 --> 0:10:53.080 going to be a big year for the AMPTP no 0:10:53.120 --> 0:10:56.840 matter what, because is on the every three year cycle 0:10:56.960 --> 0:11:00.320 where we're negotiating the d g A, w g A 0:11:00.440 --> 0:11:04.880 and SAG after agreements anyhow, uh and so uh, you know, 0:11:04.920 --> 0:11:07.240 no surprise that there was a role for them this year. 0:11:07.800 --> 0:11:10.760 But you know, the pandemic, maybe more than anything that 0:11:10.800 --> 0:11:17.280 I've encountered in my career, is a true hand industry issue, um, 0:11:18.600 --> 0:11:23.040 something that is affecting every producer more or less equally. 0:11:23.360 --> 0:11:26.320 I've never seen a situation where all production everywhere in 0:11:26.360 --> 0:11:28.880 the world ground to halt all at once. And so 0:11:28.960 --> 0:11:34.040 when you're facing a challenge that truly touches on every 0:11:34.040 --> 0:11:36.480 part of the industry and affects everybody, there's an important 0:11:36.559 --> 0:11:39.520 role for a trade group like the AMPTP so that 0:11:39.640 --> 0:11:43.800 we can make smart decisions because you know, ultimately, UM, 0:11:44.480 --> 0:11:48.120 I think Hollywood gets through this by recognizing our our 0:11:48.480 --> 0:11:53.359 shared uh interests and are shared fate, and the AMPTP 0:11:53.480 --> 0:11:56.319 becomes a vehicle for that. So uh, just as the 0:11:56.400 --> 0:12:00.880 AMPTP is the central body through we we organized art 0:12:00.960 --> 0:12:05.720 collective margeting, as we're now dealing more extensively with the unions, 0:12:05.760 --> 0:12:07.920 on return to work rules. The A m B t 0:12:08.080 --> 0:12:11.839 P is the vehicle through which we're having those conversations, 0:12:12.120 --> 0:12:16.199 so every company doesn't have to negotiate independently with the unions. 0:12:16.480 --> 0:12:20.040 The AMPTP has also had an important role in kind 0:12:20.080 --> 0:12:23.360 of being the touch point for the industry with the 0:12:23.720 --> 0:12:27.800 state and federal government officials. Again, we are submitting plans 0:12:27.840 --> 0:12:31.280 and white papers to the governor in California and in 0:12:31.400 --> 0:12:35.160 New York articulating the industry's vision for when and how 0:12:35.679 --> 0:12:40.720 production should resume. The AMPTP has allowed us to speak 0:12:40.840 --> 0:12:44.000 more or less with one voice so that we can 0:12:44.160 --> 0:12:50.200 have that conversation most effectively, um ultimately, As I said, 0:12:50.360 --> 0:12:54.240 you know, this is an area where I'm sort of 0:12:55.040 --> 0:12:56.520 when I look at the challenge in front of us, 0:12:56.559 --> 0:13:02.240 I'm reminded of kind of other similarly structural challenges to 0:13:03.559 --> 0:13:08.000 television or film or entertainment where maybe the industry wasn't 0:13:08.000 --> 0:13:10.840 always as smart about looking at itself as a unitary whole. 0:13:10.920 --> 0:13:14.080 And sometimes I think about the rise of home taping 0:13:14.200 --> 0:13:16.439 in the early eighties, where the music industry and the 0:13:16.800 --> 0:13:20.520 film and television industry viewed themselves as separate and competitive 0:13:21.000 --> 0:13:26.160 and did not work together. To come up with legislative 0:13:26.200 --> 0:13:30.559 solutions or regulatory solutions to protect themselves from piracy, and 0:13:31.160 --> 0:13:33.600 as a result, I think suffered a lot more from 0:13:33.640 --> 0:13:37.280 initially home taping piracy in the eighties leading to internet 0:13:37.320 --> 0:13:40.480 piracy in the two thousands because they did not approach 0:13:40.600 --> 0:13:43.599 things as a group, um and as an industry with 0:13:43.679 --> 0:13:46.680 common goals. Uh. Here, I think that the industry has 0:13:46.720 --> 0:13:48.400 been much more intelligent about saying that, you know what, 0:13:48.880 --> 0:13:52.559 there isn't a division between producers and platforms, or studios 0:13:52.559 --> 0:13:56.199 and networks here, or talent and studios, um. Ultimately we 0:13:56.280 --> 0:13:58.520 all get back to work together. And so I think 0:13:58.520 --> 0:14:00.959 the AMPTP again has been a very useful vehicle for 0:14:01.360 --> 0:14:06.920 taking that collective approach, got it? Uh? And if as 0:14:07.000 --> 0:14:09.160 we talk here, I feel like we're adding layer upon 0:14:09.320 --> 0:14:12.240 layer of complexity. So let me just throw yet another 0:14:12.800 --> 0:14:16.480 thing on the stack here, which is the diversity issue, 0:14:17.000 --> 0:14:20.600 which is obviously a huge subject in the wake of 0:14:20.960 --> 0:14:24.680 the Black Lives Matter movement. And you know, I'm curious, 0:14:25.200 --> 0:14:30.600 does that is that something that is already sort of 0:14:30.760 --> 0:14:35.960 permeating deal making, permeating even the culture of companies like 0:14:36.120 --> 0:14:39.000 Paramount right now, given there's so much to reckon with 0:14:39.160 --> 0:14:44.800 their Yeah, I mean, I think it's it's it operates 0:14:44.920 --> 0:14:47.680 independently of the pandemic. I think it's it's an issue 0:14:47.680 --> 0:14:50.920 in a conversation that predates the pandemic. But as you know, 0:14:52.080 --> 0:14:55.160 twenty isn't hurting for big news stories and big challenges 0:14:55.200 --> 0:14:58.520 to society, and we are all being forced to sort 0:14:58.520 --> 0:15:01.640 of reckon with racial engage us as an inequity on 0:15:01.720 --> 0:15:04.920 a social level in a really meaningful way and and 0:15:05.200 --> 0:15:07.640 and more forcefully than has been the case of the past. 0:15:07.760 --> 0:15:11.240 So I think the industry has talked the talk about 0:15:11.360 --> 0:15:14.480 taking diversity and inclusion seriously for some time, but uh, 0:15:14.680 --> 0:15:18.120 you know, the events of the Black Lives Matter protests, 0:15:18.480 --> 0:15:20.920 you know, the murders of of George Floyd and mad 0:15:20.960 --> 0:15:24.640 Aarberry and others have, um, you know, encouraged everybody to 0:15:24.640 --> 0:15:26.960 start walking the walk in a bigger way and to 0:15:27.360 --> 0:15:31.040 really commit themselves to these these issues in in more 0:15:31.200 --> 0:15:34.360 tangible ways. I think a lot of companies are looking 0:15:34.400 --> 0:15:36.560 at their own numbers. I think Paramount has a good 0:15:36.600 --> 0:15:40.480 track record organically over the last few years of seeking 0:15:40.520 --> 0:15:45.680 out diverse storytellers and diverse stories. But yeah, I mean, 0:15:45.840 --> 0:15:51.480 I think the moment demands real action and not just platitudes. 0:15:51.920 --> 0:15:54.960 And so every company is going through a period of 0:15:55.040 --> 0:15:59.120 introspection about where it's truly at and how it gets 0:15:59.160 --> 0:16:03.520 to a better place. And I'm sure that's also working 0:16:03.600 --> 0:16:06.680 itself into where we started the conversation in terms of 0:16:06.760 --> 0:16:10.440 your your focus now on the development front. I understand 0:16:10.520 --> 0:16:14.200 that that sort of proceeds apace. But given you don't 0:16:14.240 --> 0:16:17.200 really know when a lot of what you're talking about 0:16:17.200 --> 0:16:19.840 in development will actually be put in production, how does 0:16:19.960 --> 0:16:27.320 that impact the usual development deal making? Well, Um, for one, 0:16:27.440 --> 0:16:31.120 it requires a lot of communication between the studio and 0:16:31.240 --> 0:16:33.360 the talent and the representatives about what's the plan and 0:16:33.480 --> 0:16:36.920 what's the process. You know, deal making is all well 0:16:37.000 --> 0:16:40.560 and good, but deal making is really designed to the 0:16:40.640 --> 0:16:42.680 way that I think about it as kind of getting 0:16:42.720 --> 0:16:46.680 getting every uh documenting everybody being on the same page 0:16:46.720 --> 0:16:48.520 and what our understandings and what the rules will be 0:16:48.760 --> 0:16:51.680 will be. But the sort of you know, root of that, 0:16:51.920 --> 0:16:54.760 like another step up, is just actually understanding each other 0:16:54.800 --> 0:16:58.280 and having a plan. So we're having transparent conversations with 0:16:58.640 --> 0:17:01.280 our with the writers and producers that we work with 0:17:01.320 --> 0:17:04.119 about what we think the timetable should be. UM Paramount 0:17:04.160 --> 0:17:07.399 has always invested heavily in internal development. You know, there 0:17:07.440 --> 0:17:10.680 are studios that focus more on ifcom arrangements, put together 0:17:10.760 --> 0:17:13.080 a quick package, take a pitch out, take it to market, 0:17:13.320 --> 0:17:18.280 versus blinds, firm script deals, long internal development and packaging processes. 0:17:18.880 --> 0:17:21.640 Paramount has always done a bit of both, and certainly 0:17:22.160 --> 0:17:25.280 we're extra focused on internal development right now because we 0:17:25.400 --> 0:17:28.520 do not want to again take projects out into a 0:17:28.600 --> 0:17:32.920 marketplace where our buyers are maybe feeling really financially stressed 0:17:33.520 --> 0:17:36.040 or kind of you know, struggling with their budgets for 0:17:36.080 --> 0:17:40.040 the year, and so we're taking our time UM working 0:17:40.080 --> 0:17:46.399 on second scripts, bibles and formats. UM. We are being 0:17:47.200 --> 0:17:49.440 you know, we we want to give our projects the 0:17:49.480 --> 0:17:52.680 best opportunity to succeed, and sometimes that means waiting a 0:17:52.760 --> 0:17:55.360 minute so that they kind of reach the most receptive audience. 0:17:55.760 --> 0:17:59.240 And then part of you know, the next planning aspect 0:17:59.280 --> 0:18:01.440 of that is how you cannibalize yourself and you don't 0:18:01.480 --> 0:18:03.960 rush to take everything to market all at once and 0:18:04.200 --> 0:18:07.680 to spread things out in a certain way. It's also 0:18:08.600 --> 0:18:11.240 a task of how you manage kind of pre existing 0:18:11.280 --> 0:18:14.160 development and projects that were already well along the way 0:18:14.880 --> 0:18:19.000 uh to production UM, where maybe the network and the 0:18:19.359 --> 0:18:21.840 studio agree that creatively, this is where we want it. 0:18:22.040 --> 0:18:24.320 And you know, in a normal world this would be 0:18:24.359 --> 0:18:26.359 ready to go, but we can't perceive right now. So 0:18:26.440 --> 0:18:28.639 what do we do? And you know, we're talking to 0:18:28.720 --> 0:18:33.080 network partners about conditional orders where you know, they're making 0:18:33.160 --> 0:18:38.560 a commitment to the series moving forward, subject to you know, 0:18:38.720 --> 0:18:41.400 answering those last questions about what's the cost and what's 0:18:41.440 --> 0:18:45.719 the production plan in a COVID production environment, because we're 0:18:45.760 --> 0:18:50.000 still in the process of quantifying that experience. UM. We're 0:18:50.040 --> 0:18:54.000 also you know, uh, within our network development generating more 0:18:54.119 --> 0:18:57.560 material and more scripts, uh, something that has I think 0:18:57.600 --> 0:19:01.880 already been a trend of development where you're putting together 0:19:01.960 --> 0:19:04.480 more written material before you get into production, so that 0:19:04.560 --> 0:19:07.719 when production does resume, there's the hope of actually smoother 0:19:07.920 --> 0:19:10.800 and easier production because there's more written material and the 0:19:10.840 --> 0:19:13.720 traditional system of kind of rolling the writing and the 0:19:13.800 --> 0:19:16.120 production process doesn't have to take place the same way. 0:19:16.359 --> 0:19:18.440 You can walk into the first day of production with 0:19:18.560 --> 0:19:21.639 more scripts ready. You can have you know, your scripts 0:19:21.680 --> 0:19:25.120 done at an earlier phase in the production process. UM, 0:19:26.040 --> 0:19:28.600 And it's a way to both kind of productively use 0:19:28.680 --> 0:19:30.720 the time we can doing the work we can and 0:19:30.840 --> 0:19:33.400 putting ourselves in a position to have the best production 0:19:33.440 --> 0:19:37.160 experience when that's back on the table. So you've got 0:19:37.359 --> 0:19:42.200 the development pipeline humming. Uh, I'm curious what this means 0:19:42.280 --> 0:19:46.480 in terms of, you know, have you revised your expectations 0:19:46.560 --> 0:19:49.359 in terms of the peak TV trend? Is this? Is 0:19:49.400 --> 0:19:52.200 this still something that's gonna be a hockey stick curve 0:19:52.320 --> 0:19:55.119 flying off to the top right of the chart, or 0:19:55.600 --> 0:19:58.520 are we seeing some disruption of that now? I think 0:19:58.560 --> 0:20:01.600 we are seeing some disruption and of that. Um. I 0:20:02.119 --> 0:20:05.679 think that you know, the peak TV curve, even if 0:20:05.720 --> 0:20:07.720 it was a hockey stick, it was never going to 0:20:07.840 --> 0:20:10.280 be a perpetual hockey stick. There was always going to 0:20:10.320 --> 0:20:13.879 be a plateau on the other end of it. And uh, 0:20:14.200 --> 0:20:18.200 you know, I do think that this moment may accelerate 0:20:18.320 --> 0:20:22.480 the arrival of that plateau. I mean the streaming wars 0:20:22.760 --> 0:20:26.160 as as you know, people like that term. They're very competitive, 0:20:26.240 --> 0:20:28.800 difficult wars. And I think there's broadly been a perception 0:20:28.920 --> 0:20:32.479 that with the proliferation of all these new streaming services, uh, 0:20:32.680 --> 0:20:36.400 not all will be able to survive forever. Uh. There's 0:20:36.680 --> 0:20:40.480 a assumption that you know, households will tolerate a certain 0:20:40.560 --> 0:20:44.000 number of subscriptions. I believe the average household in the 0:20:44.080 --> 0:20:46.760 research I most recently saw in the US has if 0:20:46.800 --> 0:20:49.920 it is a streaming household, has two point seven streaming subscriptions. 0:20:50.240 --> 0:20:53.560 How much higher can that go? Especially in a time 0:20:53.720 --> 0:20:56.359 when you know, put aside the economic stress on the 0:20:56.440 --> 0:20:59.040 industry and the companies in the industry, there's economic stress 0:20:59.119 --> 0:21:02.879 on the public, on everybody. People are looking at their budgets. Um, 0:21:03.080 --> 0:21:07.720 you know, they're they're feeling economically insecure, even if their 0:21:07.840 --> 0:21:10.240 jobs are still in place for now, and I'm probably 0:21:10.240 --> 0:21:12.719 asking them tell their hard conunptions of do I need 0:21:12.800 --> 0:21:16.000 four or five subscription services. One of the trope phrases 0:21:16.000 --> 0:21:17.359 that I've been using for a while is, you know, 0:21:17.440 --> 0:21:19.359 this time a year and a half ago there were 0:21:19.400 --> 0:21:22.160 three premious subscription services. This time next year there will 0:21:22.200 --> 0:21:23.760 be eight, and this time four years from now there 0:21:23.760 --> 0:21:26.480 will be four. Maybe I need to revise that to 0:21:26.560 --> 0:21:29.040 this time three years from now there will be four, um, 0:21:29.359 --> 0:21:32.720 because ultimately, you know, I think the business plan for 0:21:33.119 --> 0:21:37.600 all of these companies contemplated being able to tolerate a 0:21:37.720 --> 0:21:40.159 certain period of time of pain, a certain period of 0:21:40.200 --> 0:21:44.520 time of operating at a loss to acquire the subscriber 0:21:44.600 --> 0:21:46.800 base that it needs to kind of advance to the 0:21:46.880 --> 0:21:52.080 next stage of the industry. And right now, all of 0:21:52.240 --> 0:21:56.280 these new entrants into the market are going to have 0:21:56.400 --> 0:21:58.240 a Harvard time to what have otherwise been the case 0:21:58.560 --> 0:22:03.080 building up their original content offerings. So putting together that 0:22:03.240 --> 0:22:06.440 really appealing package to the consumer to justify the initial 0:22:06.440 --> 0:22:08.760 subscription is a little bit more challenging if you can't 0:22:08.880 --> 0:22:13.399 load up your number of new shows, and uh, the 0:22:13.840 --> 0:22:17.400 sort of macro economic pressure that everybody is under may 0:22:17.520 --> 0:22:20.240 make it harder for these companies to be willing to 0:22:20.440 --> 0:22:23.760 operate these services at significant losses for two, three or 0:22:23.760 --> 0:22:26.080 four years at a time to make it to that 0:22:26.160 --> 0:22:29.720 phase of profitability. So I do think there's a risk that, um, 0:22:30.040 --> 0:22:34.119 you know that the pandemic is going to accelerate the 0:22:34.160 --> 0:22:39.080 contraction in the number of platforms that are active in 0:22:39.119 --> 0:22:42.760 the marketplace, which probably comes with a contraction in the 0:22:42.840 --> 0:22:46.240 overall volume of production that's in the marketplace. Uh. So 0:22:46.520 --> 0:22:48.880 you know, it's not the end of peak TV right now, 0:22:49.080 --> 0:22:52.119 but I do wonder if you know peak TV as 0:22:52.160 --> 0:22:53.920 we understand it. I think when we last spoke, I 0:22:54.040 --> 0:22:57.400 predicted a you know further five year runway to peak 0:22:57.480 --> 0:23:01.159 TV before things we're going to start really tightening up. 0:23:01.359 --> 0:23:03.399 I think there's a good chance that that five year 0:23:03.440 --> 0:23:06.480 runway may look more like a three year runway. I 0:23:06.640 --> 0:23:08.960 hear you. I follow the logic, but I would also 0:23:09.040 --> 0:23:14.120 be remiss in not noting that your parent company, Viacom 0:23:14.200 --> 0:23:19.240 CBS seems intent on entering this marketplace and a lot 0:23:19.400 --> 0:23:23.199 later than many of the other players. So how does 0:23:23.280 --> 0:23:27.400 that bode for your company's effort on this front. Well, look, 0:23:27.440 --> 0:23:29.880 I think I think we have to be clear eyed 0:23:29.920 --> 0:23:32.399 about the challenge in front of us. I think for 0:23:33.720 --> 0:23:38.159 Viacom CBS, the focus is on marshaling the combined resources 0:23:38.200 --> 0:23:42.159 of the recently merged company and sort of um uh 0:23:43.040 --> 0:23:46.680